Block Chain Technology to help track global food supply chain
Nine global corporations, including Walmart, have partnered with IBM to launch a block chain for tracking food supply chains.
The Food Trust blockchain, which includes Nestlé SA, Dole Food Co., Driscoll’s Inc., Golden State Foods, Kroger Co., McCormick and Co., McLane Co., Tyson Foods Inc. and Unilever NV, have been collaborating with IBM on the initiative since 2016, and began conducting trials of the product in August of last year.
Walmart’s vice president of food safety, Frank Yiannas, referred to the Food Trust blockchain as the “equivalent of FedEx tracking for food,” “You’re capturing real-time data at every point, on every single food product.”
Although the brands involved may be competitors in some cases, Chris Tyas, global head of supply chain at Nestlé said that regardless, they are “working together to ensure the trust of consumers.”
According to IBM, the Food Trust system stores the data of about 1 million items, specifically noting Nestlé canned pumpkin, Driscoll’s strawberries and Tyson chicken thighs.
The WSJ writes that the blockchain was not ready in time to help in tracking the E.coli-contaminated romaine lettuce in the US that has infected more than 197 people across five states. Yiannas notes that even if it takes years for the food industry to completely adopt blockchain, in the future “outbreaks don’t have to be this big and this long.” In April, Walmart had announced that it was ready to use blockchain.
Ref: Article by Molly Jane Zuckerman
Author: Aftab A. Khan, Executive Director, BRASI
Trends in Supply Chain Management
PRODUCT CLOCK SPEEDS WILL DETERMINE THE NUMBER AND NATURE OF SUPPLY CHAINS
This “fast clock speed” lifecycle is becoming more the norm than the exception. The days of the steady and static product catalog is past; thinking otherwise, in fact, is a recipe for disaster. However, we continue to find companies using a single supply chain approach to service all segments irrespective of the time constraints.
The winners of the future will have the same number of distinct supply chains as there are product clock speeds. In addition, supply chain organizations will need to be aligned by product segments as well as functional segments in a matrix fashion to serve the distinct supply chain needs.
SCM: Unique strategies for TTM, a mix of penetration and options – agile supply chain. Available To Promise (ATP) and Capable To Promise (CTP)
MICROSEGMENTATION WILL BE THE KEY TO SUCCESS
Going forward, organizations will need to know their micro segments, and their supply chains must be able to effectively service them based on the business strategy. I always encourage clients to think of their business in terms of the individual consumer or groups of consumers as opposed to a broad brush view of categories. Put another way, adopt a B2C (business to consumer) mindset even if your operation is predominantly B2B (business to business).
SCM: Balancing micro-segmentation with accompanied complexity:
Product Life Cycle/License Management
Proliferation of components in the planning system
Capacity management– internal and outsourcing
TECHNOLOGY TO SUPPORT SUPPLY CHAIN MANAGEMENT WILL PRIMARILY BE “ON TAP”
Not just technology products, but also services – consultancy in IT, supply chain and related sectors is growing, with more and more individual and small consultants.
SaaS (software as a service) is gaining mainstream attention.
Most, if not all, supply chain technologies by 2020 will be delivered and consumed via this method—or “on tap.”
The user will pay for the ability to use the capability and will not have to incur the large fixed costs of ongoing maintenance, upgrades, and infrastructure expenditures that can amount to almost 25 to 30 percent of the cost of ownership. The widespread adoption of SaaS constructs will likely be accelerated by the rise of cloud computing and diminishing concerns about the security aspects of SaaS.
SCM: think of yourself an in internal consultant – you might become one!
LEADERS WILL LEVERAGE SOCIAL MEDIA IN A CLOSED LOOP FEEDBACK PROCESS
Influence of social media on businesses and supply chains
Social media data is everywhere today. In recent work we did with a durable goods company, we found that they had 2,000 websites/ blogs that were discussing their products and service needs on a fairly regular basis.
However, this company—like most—did not have a systematic method to study the data and disseminate the information to the various supply chain constituencies (design, planning, procurement, service, manufacturing, and so forth).
This is necessary to provide closed loop feedback processes that allow the company to proactively respond to the feedback.
The winning companies will be able to receive, process and act on the
SCM: Use social media to gain insights to your vendors and customers
ARTIFICIAL INTELLIGENCE WILL BE EMBEDDED IN MAINSTREAM SUPPLY CHAIN ACTIVITIES
Humans learn by doing and processes improve as they get “leaned out.” Yet somehow, every time we build a supply chain system we begin the process from the ground up.
Planners go through the same calculation steps every time they start; procurement folks repeat approximately 35 percent to 40 percent of the activities they did in the past. The same holds true for people involved in building logistics and execution systems.
The problem is that when embarking on a supply chain program or initiative we do not have access to algorithms that learn and retain the knowledge and experience of the past. We contend that supply chain artificial intelligence will need to be embedded in more effectively automating mainstream supply chain activities.
Applications in SCM – and how it changes your role
CISCOM continues to gain popularity due to its leading concepts and applied tools and methodologies, aimed at improving customer service and reducing costs. The 4 C’s of supply chain management – Customer Service, Cash Flow, Cost and Capacity applied through established processes.
The next CISCOM Online Course will begin on Saturday, July 14 and end on Saturday, September 15, 2018. Full details and schedule of additional courses at affiliates locations are posted on BRASI web site.
Book early, as positions are filled quickly.
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