The multinational German-based software firm SAP announced it will use blockchain for supply chain, reported Coindesk on May 14.
The blockchain leader at SAP, Torsten Zube, mentioned that the company is planning to apply the blockchain technology to agricultural supply chains through its Farm to Consumer initiative. Other members working with SAP on this project include Johnsonville, Naturipe Farms, and Maple Leaf.
Zube wrote in a blog post,
“The Farm to Consumer project perfectly showcases a common pattern we see in many of our blockchain projects. Cross-company collaboration along complex value chains for which the technology can remove abundant process steps and friction, and establish automated trust.”
He also explains that the blockchain technology will enhance the transparency in the food tracking and that it will authenticate and execute transactions.
The blockchain technology will be integrated into SAP’s Global Track and Trace technology and will play a crucial role as “an additional layer complementary to core processes that creates one shared view on the data from all involved stakeholders contributing to the supply chain.”
Zube is convinced that the blockchain technology can have a major impact on the present food industry models.
“If enterprises can access the complete version of product history, this could result in a shift from a central unilateral supplier-led production to a consumer demand-led supply organized by a consortium of peers,” Zube mentioned.
“Networking along the traditional lines of value chains will be replaced by sharing data governance, resources, processes and practices and lead to joint learning opportunities.”