Increasing transparency in the supply chain with blockchain technology : A case study of small and medium sized South African wine producers

Abstract: The world is facing new challenges caused by global warming and is puttingpressure on governments, companies and the civil society to act fast. Like all industries, the wine industry is affected by climate change and wine producers are simultaneously struggling to stay viable while competing on a global market. To become sustainable, transparency is needed in the supply chain so that stakeholders and consumers can influence it. In this study, blockchain technology is investigated as a possible technology that can increase sustainability, transparency and over-all efficiency in the supply chain. The study is a case study and takes place in South Africa. The study takes the perspective of small and medium sized enterprises because they are a big part of the market and has not been researched in this area. Empirical data was collected through interviews, observations and secondary data and it was analyzed through thematic analysis. The results show that there is a lot of administrative work in the industry where compliance and certifications take a lot of time and effort. The smaller wineries, that often want to focus on making good wine, have a harder time with the administrative work since the same person might have several roles or functions in the business. The current traceability system is also one of the best in the world but is largely paper based. In the discussion it is shown that the industry has some elements that would be good for a blockchain system but the smaller producers would probably not dare to invest in such a system since they need improvements in quality or efficiency to stay viable and the technology required is expensive. The thesis concludes that the industry has some structures in place that would be a good base for a blockchain system. This could add an extra level of security and trust to the system. The implementation for the small-scale producers seems far away since the technological requirements are expensive.