Supply chain management has become a complex issue for many sectors in recent years, including the food and agriculture sectors. If you want to ensure that essential but perishable goods get where they need to go in a reliable and timely manner (and are of the quality consumers deserve and expect), an accurate, real-time tracking system is the answer. invaluable.
That’s why some food and agriculture companies are exploring the use of blockchain technology. The clear benefits in terms of transparency and traceability make verifying the origin, processing and quality of food products easier for all parties. A company that publicizes its use of blockchain technology for supply chain management can also gain the trust of consumers focused on issues such as food safety and sustainability.
However, leveraging blockchain technology is not as simple as purchasing a software package. To reap the full benefits and see ROI, food and agriculture companies would be wise to first learn the best practices and smart strategies to get started. Below, nine members of Cointelegraph Innovation Circle share their tips for food and agriculture companies beginning to explore blockchain technology for supply chain management.
Start with clarity about your goals
Blockchain can improve traceability, transparency, and efficiency, but it’s critical to understand the specific pain points you’re addressing. Customize the solution to your unique supply chain needs and ensure both scalability and practicality. – Maksym Illiashenko, My NFT Wars: Riftwardens
Emphasize simplicity
Integrating the ‘seamless principle’ and ‘keep it simple, stupid’ approaches is an excellent way to implement blockchain solutions in the food and agriculture industry. This combined approach emphasizes not only simplicity and ease of use, but also the importance of smooth integration and user experience, while increasing transparency, efficiency and trust in the supply chain. – Myrtle Anne Ramos, Blocking Tides
Prioritize transparency
Industries with extensive supply chains must prioritize transparency. Ensure that your blockchain system provides real-time, immutable data that is accessible to all parties involved. This transparency promotes consumer trust, verifies the authenticity of products and strengthens traceability – all crucial elements for an efficient and reliable food supply chain. – Sheraz Ahmed, STORM Partners
Start with one specific process
Start small and identify a specific process that could benefit from blockchain technology, such as traceability, transparency, food safety or reducing fraud. Blockchain solutions are most effective when they involve multiple participants in the supply chain. Engage with suppliers, distributors, retailers and other relevant parties to ensure their buy-in and participation in the implementation. – Tammy Paola, Zerocap
Choose an accessible, inclusive approach
Ensure that all participants, from farmers to retailers, have the necessary technology tools and training. Success depends on the active participation of every link in the chain and accurate data entry, maintaining a transparent and traceable system. An inclusive, technically accessible approach is crucial for the integrity and effectiveness of the blockchain solution. – Tomer Warschauer Nuni, Kryptomon
Implement blockchain where independent validation is most beneficial
Blockchain differs from existing methods of sending data to a database or dashboard because the added value is (or should be) independent validation (that is, mutual assurance that the data has not been changed). By switching to unbiased evidence instead of documents that can be forged, the chain of custody and provenance can be quickly identified. Implement blockchain where stakeholders agree it is a benefit. – Stephanie So, Geeq
Understand that mistakes will be made by humans, not the blockchain
The blockchain is different from traditional systems and therefore must be nurtured in a way that is beneficial to all parties. This means that many complications can arise, and within the food and agricultural industries the margin for error is even smaller. Therefore, communication and understanding from all involved are crucial, as any error will not be related to the blockchain, but will instead be a human error. – Ilias Salvatore, Flooz XYZ
Know that several years of testing are required
One successful blockchain project is the IBM Food Trust, which provides verifiable details on the safety and sustainability of food produced. One important thing we can learn from this project is that it will take several years of testing (in this case from 2017 to 2023) to ensure the solution accurately addresses a problem. This approach reduces the risk of failure after launch. – Abhishek Singh, Acknowledgments
Make sure the foodways remain intact
Many pixels have been exhausted theorizing how blockchain technology could liberate industries and supply chains. However, ensuring that digital assets actually take into account the livestock or crops they represent is critical to mitigating the dire consequences that subversion can have on at-risk populations. Therefore, those who want to disrupt the agricultural sector must ensure that our foodways remain intact. – Oleksandr Lutskevych, CEX.IO
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. The opinions expressed do not necessarily reflect those of Cointelegraph.
