Use of Blockchain in the Food Industry
Globally, the food industry confronts concerns like lack of product traceability, lack of labeling transparency, and inefficient inventory management. Additionally, issues like the entry of counterfeit food products, coupled with slow product innovation cycles, are challenging for many foods and beverage manufacturers to maintain their reputation and keep up with the industry’s dynamics.
Blockchain, proliferating rapidly and covering almost every industry and sector in the world, addresses these challenges. The large-scale adoption of blockchain across the F&B supply chain can create substantial benefits. It can build healthy supply chain synergies to help take the industry to the next level. So, let’s see some uses of blockchain in the food industry.
- Increased Food Traceability
Global supply chains have become excessively complex. Some of the reasons for the complexities include evolving consumer preferences and demands, increased global competition and regulatory controls, etc.
However, these are perpetual challenges or factors. They have always been an integral part of the contemporary food industry and hence are deemed to be there. What matters here is how the food industry tackles them.
Food companies can use blockchain technology to increase traceability and quality assurance from source to consumers. So, while meeting consumer demands, food and beverage companies can also strengthen consumer trust.
But how do blockchain increase traceability and transparency? Blockchain is a distributed database that fosters honesty and transparency throughout the supply chain. All supply chain elements are responsible for and obliged to upload their product information and data. Thus, accurate data collection helps increase partner accountability and credibility.
Blockchain technology enables everyone to track the origin of the product and its manufacturing process and share all the information through a single platform.
It is undoubtedly a disruptive technology, requiring F&B companies to reorganize their workflows and systems. However, if companies want to maintain consumer trust through increased transparency, blockchain is undoubtedly the way!
- Increased Efficiency
Blockchain enables you to track every productivity throughout the supply chain. It helps automate every stage of a product’s supply chain journey, thus reducing manual errors and increasing supply chain efficiency.
All the players involved in the supply chain can have instant data access through the cloud without depending on each other. Furthermore, it enables consistent data tracking and reduces administrative efforts considerably. Everyone gets everything they need in a single place. The storing and availability of information in a single location also help enhance communication efficiency and effectiveness.
- Increased Security
Security is one of the essential USPs of blockchain technology, which leverages blocks to secure every transaction.
These blocks are copies of the document stored chronologically and linked to earlier blocks. They serve as a permanent record of transactions. Hacking or stealing data from the blocks or manipulating them is highly difficult. It helps reduce security risks and incidents like fraud or forgery within the supply chain.
Consumers are sensitive to fraud. Their response to fraud, misconduct, non-compliance, or a negative word, slides rapidly from negative to sometimes hostile. In situations like these, where a single error could compel the company into a precarious position, increasing security with blockchain can help.
- Assured Food Safety
Two things that define a food’s value are its quality and safety. Despite numerous technological advancements, food and beverage manufacturers still cannot track down the source of contamination in a particular food product. In some worse cases, it is too late until any supply chain players identify the contamination! Using blockchain can help combat this serious concern.
Companies can leverage track-and-trace solutions that usher the transparency necessary to help companies manage supply chains efficiently.
The system enables companies to trace every little detail of a particular food or beverage product across every supply chain stage. It can also help them track the source of contamination (in case of contamination) promptly and forbid contaminated or counterfeited products from entering the market.
- Better Supplier Selection
Vendors, associates, and suppliers pretty much impact the position and competence of F&B companies. Accordingly, the latter always keeps looking for credible, efficient, and honest raw material suppliers. Blockchain can help here as well. They can help companies connect with better suppliers. Similarly, suppliers can connect with food and beverage manufacturers, participate in bids, keep a note of tenders, and contest for a particular contract based on their capabilities.
- Enhanced Inventory Management
Inefficient inventory management is often cited as one of the most significant reasons for the failure of a particular company. Many consider it an arduous task to manage inventories and shorten lead times. Integrating blockchain in the supply chain can help automate the food production process and overcome challenges or shortcomings concerning production workflows.
Key Takeaways of Blockchain’s Benefit for the Food Industry
In a nutshell, blockchain proves beneficial in the following ways and areas.
- Enhanced food traceability
- Improved inventory management
- Tracking and tracing the source of contamination and counterfeit products
- Better choice of suppliers
- Ensuring food safety
- Increased data security
- Increased consumer trust and enhanced credibility in the market
Other benefits include preventing price coercion, fulfilling routine operational demands, and reducing food waste.
Customized Blockchain Solutions with Qodequay Technologies
Blockchain is an evolving technology. It is yet to touch many areas and gain widespread acceptance and adoption across the food industry. However, it can undoubtedly overcome almost every existing challenge in the food industry and in helping avoid many futuristic ones.
Qodequay Technology has the experience and expertise required to craft customized blockchain solutions for the food and beverage industry. We understand your needs and supply chain to develop blockchain solutions aligned with your requirements.
But how do we do it? Click here to connect with us to know more about blockchain solutions and how they can work wonders for your business.
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