It is often not easy to say where the T-shirt comes from in the store. Most companies have many different suppliers for the individual parts of a product. Whether in the manufacture of cars, cosmetics or clothing – it is difficult for companies to understand supply chains. The blockchain technology, which is actually used for crypto currencies, is now supposed to change that.
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Blockchain – many probably only know the term in connection with crypto currencies such as Bitcoin. These are blocks of data records that can be continuously expanded and are linked to one another. In the case of cryptocurrencies, the transactions are saved together with a time stamp, so that counterfeiting is not possible. It is precisely this technology that companies now want to use to understand their supply chains.
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“The idea is that raw materials are marked at the beginning of the supply chain, for example with a QR code. This is linked to the blockchain in the background.”
Katja Scherer, business journalist
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This is how it works with an organic chocolate spread, for example: The company buys nuts from a nut farmer, who in turn puts a QR code on every sack of nuts. This is then linked to the blockchain software, explains business journalist Katja Scherer. In addition, the farmer can then enter several data: weight, organic quality, origin and so on.
When the nut sacks come to the next supplier, such as a mill, they can scan the QR codes, access the information and finally enter their own data as well. This goes on until the product finally arrives in Germany and is ready.
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Interest in technology is growing
Although it has so far been rather the exception for companies to dry their supply chains with blockchain, more and more investors and customers are demanding the transparency of products. From 2023, companies will even have to be liable for their supply chain – which is why interest in the new technology is increasing, explains Katja Scherer. The technology has also gotten better and easier to use in recent years.
Data can no longer be changed
The big advantage of the blockchain: what has been entered once cannot simply be changed afterwards. This guarantees, for example, that suppliers can no longer forge delivery notes, for example turning normal nuts into organic nuts. In addition, the blockchain ensures that companies can be clearly identified, even if no name is given, explains the expert.
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“The data in the blockchain are not anonymized, but pseudonymized. This means that they can be clearly identified via their digital identities.”
Christoph Hauptenthal, founder of AFTS
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Because: The data is not anonymous, but pseudonymous, explains Christoph Hauptenthal from the AFTS company. This means that a company is not entered in the blockchain with its name, but rather with a number code, for example. The reason for this is that many suppliers do not want to make all of their business partners visible to everyone.
Only smartphone necessary
But there is also criticism of the technology. Suppliers in poorer regions in particular pose problems with the technical requirements. Christoph Hauptenthal, however, thinks that the technology basically only requires a smartphone to scan the QR code – and that is meanwhile also widespread in emerging countries.
The biggest problem for companies is the organization, says the blockchain expert. To do this, all suppliers must first be reached and then convinced.
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“But the blockchain does not solve all problems. Because incorrect data can still be fed in – even if it cannot be changed later.”
Katja Scherer, business journalist
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When it comes to sustainability, the blockchain can only help to a limited extent. Initially, it only ensures more transparency, says Katja Scherer. But it does not solve all problems. After all, suppliers can still enter incorrect data – and pretend organic quality where none is in it. It must therefore be clear who is authorized to use the system on site. In addition, there should be external auditors who should monitor these supply chains.
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