Unilever Blockchain-ifies Sustainability
Consumer goods conglomerate Unilever aims to showcase blockchain’s sustainability verification capabilities using Dinant palm oil sourcing data. Unilever production sites view palm oil supply chain activities like fresh fruit processing, storage, and shipping – closing visibility gaps plaguing analog supply chains.
Why It Matters:
- Confirms responsible farming practices to reduce deforestation
- Secures buy-in across external suppliers and partners
- Authenticates sustainability claims to attract conscious consumers
- Reinforces corporate stewardship principles on eco-ethical issues
Unilever sets the tone for other CPG giants facing scrutiny over ingredient sourcing amid climate change concerns, wildlife protection protests, and other activism.
General Motors Drives Toward Electric Vehicle Credits Optimization
As automakers ramp up electric vehicles production to keep pace with tightening environmental regulations, properly documenting sustainable sourcing and manufacturing practices grows crucial but exceedingly difficult across globally dispersed tier-2, tier-3 indirect suppliers.
General Motors turned to blockchain solution firm Circulor for end-to-end traceability across battery supply chains spanning lithium mines, refiners, and cathode makers. Data immutability provides credible basis for eligibility to benefit from emissions tax credits and monetization schemes.
Benefits:
- Supports adherence to developing e-vehicle legislation like UK carbon taxes
- Verifies materials claims for environmental credit certification
- Enables ‘green’ premium pricing for end consumers
- Reduces compliance costs via automated reporting
The Circulor tool pores through millions of data points daily from multiple legacy systems in GM’s sprawling 300,000-strong supply base—a task proving otherwise impossible without blockchain.
Thanks to Blockchain, EV Battery DNA Tests Expose Unsavory Origins
BASF uncovered widespread deceptions across EV battery chemicals supplies using blockchain-based molecular tagging technologies by startup GainBit. By dematerializing molecular tags into a blockchain registry, materials can be cost-effectively traced back to their birthplaces throughout distribution.
GainBit scanned BASF products at each transfer point tomaintain a definitive record of provenance, exposing several unauthorized substitutions made by middlemen.
Why Issue Tracking Matters:
- Pinpoints integrity breaches leading to quality problems
- Critical for sustainability ratings tied to ethically-conscious funds
- Closes visibility gaps between tier 1 and downstream suppliers
- Masks IP theft vulnerabilities
The anonymity afforded by blockchain encourages information transparency without risking proprietary secrets around formulations or other intellectual property. BASF is expanding adoption across high-performance chemicals verticals where reliability and traceability are paramount.
Laser-Focused Accountability for Boeing Parts Pedigree
Aerospace juggernaut Boeing will equip parts on the next generation 777X plane with traceability data logged on a private distributed ledger solution developed by UK-based Digital Axes.
Information stored immutably includes manufacturing and maintenance records, wear-and-tear histograms, and even storage conditions. Airlines can digitally verify components lineage prior to installation for added safety assurance. Digital Axes won Boeing‘s GoFly competition for blockchain innovations generating operational impact.
Why Pedigree Tracking Takes Flight:
- Confirms use of authentic, OEM-approved parts
- Locks in version control across complex systems
- Cuts inspection times and slashes associated fees
- Improves incident investigative capabilities
The Digital Axes network maps interdependencies spanning Boeing, part fabricators, logistics vendors, maintenance crews, and regulatory bodies—delivering transparency whilst protecting commercially sensitive data. Boeing predicts 10% savings from streamlined parts management alone.
Blockchain Could Have Averted Horse Meat Lasagna Scandal
In 2013, European supermarket chain Findus discovered some of its beef lasagna products contained over 60% horse meat illegally sourced from Romania. The scandal rocked consumer trust and retailer profits.
Boston Consulting Group analysis shows blockchain could have prevented this affair and controlled damage. By tagging beef to verify transport from farm-to-fork, tampering alarm bells would have sounded earlier. Even if issues slid by, QR codes on final packs would empower consumer checks.
Why Blockchain Works Here:
- Prevents suspect ingredient swaps/additions
- Exposes goods diverted outside approved channels
- Allows targeted recalls to minimize waste
- Reassures consumers with transparency
While this technology came too late to protect Findus’ brand equity in 2013, food companies now use blockchain to get ahead of would-be counterfeiters—or else risk supermarket penalties.
Blockchain Soon Critical for Competitive Advantage
By 2024 industry surveys predict at least 30% of manufacturing firms globally will have integrated blockchain ledger systems across their supply chains. The incentives are too compelling— billions in projected cost savings and revenue gains.
Logistics giant DHL found that pharmaceutical firms stand to achieve over $200 billion in annual savings through blockchain serialization applications alone when factoring black market erosion, safety recalls, legal fees for investigating suspect cargo, and secure warehousing expenses.
These impressive efficiency stats will drive blockchain expenditure near $19 billion by 2024. Companies not outpacing rivals risk competitive disadvantage.
Pfizer Prescription Tracking Triggers Ripple Effect Across Brazil’s Healthcare System
Counterfeit drugs siphon over $200 billion yearly from big pharma revenues while endangering patient health. Serialization mandates like Brazil’s require unique identifying codes on all medication packages with verification against a central database before dispensing.
But centralized databases present vulnerabilities. Pfizer Brazil pioneered using blockchain to generate verification credentials across 161 medicines with impermeable accuracy. Efforts are coordinated alongside distributors, government offices, hospitals, and insurers as adoption gains momentum.
Why Blockchain Works Here
- Decentralized infrastructure limits breach risks
- Reduces discrepancies in reimbursement claims
- Automates validity confirmation workflows
- Deters large-scale diversion criminal rings
Early results helped slash counterfeit medicine quotas down 30% in just one year since launching. The network effects from switching pharmaceutical supply chains across Brazil to blockchain drives integrity through joint accountability.
Blockchain Soon PoweringAutomated SCM Decisions
Thus far we’ve explored improving supply chain transparency issues with blockchain manually interpreting results. Yet blockchain lays the data foundation for automated decisioning via smart contracts, algorithms, and AI that proactively trigger actions.
Smart contracts encoded with business rules can route orders, release staged payments, or flag anomalies for investigation once conditions are breached. FedEx hosts over 2000 smart contracts to streamline dispute settlements without claims agents.
Meanwhile DHL employs machine learning against its blockchain-logged shipping data to dynamically optimize routes and load factors reducing empty backhauls. This predictive power saves millions annually.
Ultimately blockchain data pools feed real-timeSide‐chains connected to legacy systems create live dashboards. So rather than requesting reports,procurement managers access self-serve insights to inform everyday decisions. No more flying blind.
Blockchain Revamps Energy Sector with Microgrids 2.0
The renewable energy arena often sidelines sustainability in favor of lowest kilowatt hour costs. Blockchain is transforming microgrids by allowing self-sufficient communities to set values-based priorities.
Residents signal preferences like 100% solar and wind power or local sourcing miles on the decentralized microgrid exchange. Those priorities directly shape which assets the smart microgrid controller sources electricity from moment to moment.
Why This Matters
- Aligns energy production with usage patterns
- Reduces transmission inefficiencies of central grids
- Democratizes clean energy choices
- Incentivizes more renewables investments
Microgrid builders like Powerledger use blockchain to embed community-directed sustainability factors directly into supply-demand matching equations while still optimizing for lowest pricing.
Gradually Then Suddenly: Blockchain Network Effects Spiral
Blockchain only unfurls its full potential when entire supply networks adopt common platforms to breaks proprietary data siloes.
Like the internet before it, progress often moves deceptively slow before exponential transformation occurs once usage crosses an ignition point. Initial blockchain terraforming across consortiums lays necessary pipes for future integration by solving collective action hurdles.
To pull partners across technology switching costs, early successes establish credibility for use cases like certificate validations, dispute settlements, product recalls and chain of custody tracking. These quicker wins demonstrate decentralized models scientifically improve metrics compared to existing workflows.
Gradually, blockchain permeates informational gaps between numerous legacy systems that fail to interoperate otherwise due to competitive hesitations. Eventually network effects take over.
Conclusion: Get Ready For Next-Gen Supply Networks
The business paradigm shifts underway from blockchain go far beyond cost savings. Soon questions like:
- Where exactly was this made?
- What certifications apply to the components inside?
- Who handled this along the way?
- How does this purchase benefit communities?
- Can any sustainability claims be validated?
- Is my order at risk of delays?
…and hundreds more can be addressed in seconds rather than months thanks to transparency gateways facilitated by blockchain—either directly portals for customers or via integrated analytics dashboards for operations managers.
Early testing shows blockchain radically upgrades supply chain resilience, sustainability, safety and speed. Meta found pairing blockchain with emerging technologies like IoT sensors, GPS trackers, machine learning predictive analytics, computer vision label recognition, and drones form an unstoppable force ensuring goods reach the right hands responsibly.
Indeed, blockchain sits at the nucleus launching supply chains into the future by upgrading business models and ecosystems for everyone’s benefit. Leaders across manufacturing to logistics and retail realize blockchains potential and are hustling to stay ahead of disruption. Are you keeping pace?