Blockchains as a solution for traceability and transparency

Abstract: Requirements from consumers and governments to produce more sustainable products have increased during recent years. Even if products are certified, one cannot make sure companies meet these requirements, since no chain of events can verify this exists. The transportation industry lacks certification and information on whether a product is transported in a sustainable way. The food industry, on the other hand, has integrated the use of certifications widely. However, the industry also requires traceability through the entire supply chain. In this research, the authors study how traceability issues can be solved from the perspective of a fourth party logistics firm and how the transparency could be increased. Scholars argue that one way of solving traceability issues, and at the same time achieve transparency, could be to use the blockchain technology; a technology which stores data in chronological order, impossible to manipulate afterwards. Therefore, the blockchain technology has been tested on a product’s flow, from loading at a supplier, through a cross-docking terminal and a central warehouse, to receiving at a client’s store. By integrating a blockchain to a smartphone application, enabling scanning of barcodes through the camera, and linking the information from the barcode to the blockchain, digital footprints between the parties could be created at each transaction. Additional information about the emission standards of the trucks were connected to the drivers, which was visualized by the blockchain together with the transported product. To be able to implement the technology and successfully use it, three main challenges have to be overcome: cooperation between the involved parties, motivation for the user of the smartphone application, and a system integration between the different IT-systems. The conclusions from the research are that the usage of blockchain technology is advantageous in order to achieve traceability. In addition, the technology enables all involved parties to check the product’s entire history as well as its current location. Further, the technology creates transparency for all participants. Due to the irreversible technique of storing data, the blockchain technology creates a unique level of credibility, which contribute to a more sustainable industry. The information on the blockchain enables companies to strengthen the relationships with current customers and to attract new ones.