How Blockchain Will Transform the Food Supply Chain?
In the global marketplace, FSC (food supply chain) is important because food is an essential part of life. However, this system currently has certain problems. They are due to the coverage of an extremely large number of participants, information asymmetry, as well as the difficulty of establishing seamless connections at all levels.
It is still not possible to solve them completely. However, experts have taken some steps toward improving and simplifying food supply chains. One of them was the introduction of blockchain technology. The solution has shown a real improvement in the situation, so investments in it have increased significantly in recent years.
According to InsightAce Analytic, the blockchain market in FSC will grow at an average annual rate of 43.76% until 2031. We offer to find out why exactly its technology gave a result and what its essence is.
Source: Oodles Blockchain
How does blockchain technology work?
To solve the problems that most often arise in food supply chains, experts offered dozens of solutions. However, the implementation of the blockchain showed the best results. This technology is not new. Currently, it is already actively used in other rather complex areas, including for various financial transactions.
In the FSC sector, the technology was also able to gain a foothold. The reason is simple - the specifics of the technology functioning. Blockchain is a decentralized database in which all information is distributed according to certain criteria. It makes it possible to store copies of the same file on different servers/nodes. In this way, a certain number of participants can access them.
To implement such technology, you need to have a special software solution. It allows you to implement blockchain for the food industry, taking into account all the features of the object and the market. Each owner of such a solution receives extremely wide opportunities to improve food supply chains. To understand how valuable the project is, it is worth learning about the main advantages.
What impact does blockchain have on FSC?
A decentralized digital system provides several significant benefits for everyone involved in supply chains in the food industry. Here are a few of them.
Expanding access to information and transparency
Health and longevity are directly affected by food. That is why information about their composition, growth, and production conditions is very important. However, it can be difficult to obtain because some manufacturers do not provide data for wide access. Blockchain allows you to change the rules of the game.
This solution makes it real to track the entire supply chain, including the area where the raw materials are grown. This approach allows you to avoid consuming low-quality food and significantly increases trust in brands. Each company that invests in the project shows care for its customers, which automatically causes loyalty from their side.
Control and tracking in real-time
An important characteristic of the blockchain system is the impossibility of changing information unilaterally. Authorized persons enter product data and all processes related to them. After that, you can no longer change them. Permission of all participants in the process is required. This provides the necessary level of control and, most importantly, protection against fraud and illegal actions.
When it comes to food tracking, blockchain software solutions provide real-time visibility. It is about all stages, including the production of raw materials for them, transportation, processing, and other operations. Thanks to this, it is possible to see in time the disruptions in the field of supply chains.
The possibility of honest and transparent cooperation
Blockchain is also becoming the basis for forming partnerships, both between market giants and with mid-market companies. The basis of such cooperation is the combination of data on food products and the stages of their supply. As a result, all participants benefit. Each of them gets transparent access to the partner's information, and if problems are detected, joint efforts are directed to their solution.
Improving FSC efficiency
The implementation of blockchain technology allows identifying problems and possible disruptions in supplies at an early stage. Having received all the necessary information, operators can find solutions in time and prevent larger consequences. In particular, the basis for finding the optimal solution is digital data, to which specialists have unhindered access.
A specific example of such situations can be the detection of low-quality and dangerous food products in the supply chain. Thanks to the digitization of data at the national, international, or global levels, it is possible to see these positions in time and take measures.
Conclusions
Food supply chains at the current stage of development are complex processes involving dozens of specialists and companies. The scale is also impressive. Chains can cover not only several cities but also countries and continents.
These and other factors are the reason why problems periodically arise in the process of regulation. Blockchain is exactly the solution that helps significantly improve the situation and improve control at every stage. Companies that implement such a solution get access to important information, the opportunity to see the real situation, and also eliminate all difficulties promptly.
ABOUT THE AUTHOR:
Conrad is a professional blogger, content maker, and freelance writer. He has written many great and valuable posts on a variety of topics. Conrad loves outdoor activities. He believes the fresh air brings him inspiration for new ideas. You can reach him out through guestpostingninja@gmail.com.