According to an announcement published on Nestle.com on 2nd of July, 2019, the company will team up with OpenSC in order to make supply chain more transparent for customers. Nestle claims it is the first major company in the food industry to utilize blockchain technology in such a way. As for now, the technology is still in its testing phase, but the company hopes to use it to its full potential in the near future.
Making the supply chain transparent
The solution of OpenSC allows anyone to track the origin of products, which for some people, such as those allergic to certain food components, could be particularly useful.
At first, the program will be used only to track the path of milk that is produced in New Zealand, processed in the factories of the food industry giant and then stored in warehouses located in the Middle East. If this testing phase proves the technology to be efficient, it will then be used to trace palm oil produced in North and South America. Right now, the main goal of this pilot launch of the technology is to determine whether it is scalable enough to be used to track all the supply chains and not just the selected ones.
The representatives of the company believe that the introduction of blockchain-based product tracking is a big step forward for the company. Benjamin Ware, Global Head of Responsible Sourcing, Nestlé S.A, commented:
“We believe it is another important step towards the full disclosure of our supply chains announced by Nestlé in February this year, raising the bar for transparency and responsible production globally.”
The beginning of the food industry blockchain revolution?
Nestle is certainly not the first and, most probably not the last company to use blockchain to track the path of each ingredient its foods consist of. This use case is perfect for the blockchain technology, because before, no other software could be used to efficiently track food supply chains.
Due to the convenience of this technological solution, it would be only logical if other food companies went this path not to fall behind. If that’s the case, we could see a lot of companies implementing similar software systems in the next few years.