Walmart Wants Some Of Its Suppliers To Adopt Blockchain Technology
U.S giant retailer Walmart and its membership-only division called Sam’s Club are urging some of their suppliers to embrace blockchain to facilitate better tracking.
The U.S retailer wants some of its suppliers to adopt blockchain technology to foster better product tracking from farms to the store. This means suppliers will have to adopt end-to-end traceability systems such as the one recently created by IBM that is based on decentralized ledger technology (DLT). A recent report claims that Walmart suppliers will be required to implement blockchain technology by September next year.
Walmart’s blockchain requirement is aimed at boosting transparency and efficiency within the food system through which the company wants to add more value throughout the supply chain. The data collected by suppliers through blockchain systems will openly accessible and available in real-time. However, the unique features of blockchain technology will also allow the data to be shared securely.
Having a more efficient tracking system will allow Walmart to establish the legitimacy of products and avoid some inconveniences especially for highly perishable farm products. For example, there have been numerous recalls in the past related to such products.
"Unfortunately, over the past decade, there have been multiple high profile recalls and outbreaks associated with these types of products,” Walmart wrote in a letter.
The letter also notes that there was a major E.coli outbreak in the U.S just this year and it involved romaine lettuce. Walmart hopes that it will avoid such incidents in the future through blockchain technology. Leafy green suppliers are among the Walmart suppliers that will be subjected to the mandatory blockchain technology adoption-requirement. A blockchain-based tracking system will facilitate more efficiency within the supply chain, allowing products to reach their destinations faster thus helping to make sure that customers purchase fresh produce.
Walmart is in partnership with IBM and numerous food companies to help suppliers to achieve the blockchain adoption requirements. The companies aim to provide a low-cost and user-friendly supply chain tracking solution that is based on blockchain technology to add value and help manufacturers to meet the requirements.
Walmart’s latest blockchain pursuit highlights it’s the company’s commitment towards improving product and service quality by adopting new technologies. This should not only help in strengthening the food system but also contribute towards boosting consumer confidence. Both Walmart and IBM have launched webinars that allow them to answer common questions about their pursuits.