Agrifood Supply Chain and blockchain solutions: The trillion-dollar agri-food industry is struggling with many complex problems that affect both producers and consumers. Engagement is not intended for health, consumers are more concerned with health, so blockchain enters the picture. In this article, we will discuss the problems of the agri-food supply chain and how blockchain is useful to solve them.
In light of uncertainties like this global COVID-19 pandemic, people have begun to pay attention to the quality of the food they eat and are very concerned about where it should come from and should be. This $ 7.8 billion industry is struggling with the following major issues:
1. Proof of origin
3. Transparency in the supply chain.
These three problems have been addressed by blockchain and have effective solutions for these problems, let’s briefly discuss the following:
Product provenance and Traceability
Due to the growing demand from customers for proof of legitimacy and authenticity of the
products they buy, there is great interest in the deployment of blockchain for the origin of products in the agro-industry.
Overall, blockchain has features that can help track a product’s fingerprint. Enhanced data integrity (aided by blockchain’s immutability feature) can lead to increased customer confidence in the legitimacy of products. Also, the use of timestamps (the process of establishing a chronological order between sets of events) on the blockchain can demonstrate the existence of certain data at a certain time. The fact that the data is time-stamped (tamper-proof) provides a single source of data integrity and enables users to retrieve a complete history of activities.
Rationalization of supply chain operations
A blockchain-based platform can support the digitization of paper documentation and establish an immutable and shared record of all transactions between network participants in near real time. Because Agri Industry has a high proportion of manual labor and paperwork, which leads to slow operations and high costs.
Blockchain technology can improve end-to-end supply chain integration. Currently, some companies use enterprise resource planning (ERP) systems to manage their internal processes and other systems, such as customer / supplier relationship management (CRM / SRM), to interact with their customers and suppliers. They also use communication tools like Electronic Data Interchange (EDI) and Extensible Markup Language (XML) messaging to allow the flow of information between different organizations. Together, these systems create somewhat more integrated supply chain information systems, if only for parts of the data that exist in multiple locations.
This should not mask the fact that each participating entity still tends to have a limited view of where products. While some platforms are already aiming to provide higher levels of visibility for all participants. The supply chain, blockchains make this visibility more secure. And unchangeable for all stakeholders by allowing them to share and agree on important information. This eliminates data redundancy, double-entry, and cross-checking, which are very common in today’s two-way communications.
Automation and smart contract
There are still cases where current operations, processes, data sharing in supply chains are manual and error-prone. Secure data exchange and specifically smart contracts allow for greater automation. Efficiency through avoidance or redundant data entry, acceleration of transaction execution, and reduction of errors and misunderstandings. Smart contracts can help with cascading of purchasing orders, receipts, ship notifications, & inventory data within a supply chain. Smart contracts with blockchain technology give more technology.
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