- VeChain has revealed the possibility of establishing a blockchain technology-based system for tracking supply chains in China.
- The partnership between Walmart and VeChain could be the basis for a new system of cooperation with Chinese authorities and other local companies.
In a publication in WeChat, VeChain presented the advantages of using blockchain technology to reduce costs, increase efficiency and transparency of the supply chain in China during the “post-Covid 19” era. The company also described the results of its cooperation with Walmart in China and how this could be a model for the future of food supply chains.
VeChain estimates that a Chinese government platform for tracking the supply chain is likely to be established. In this way, the government seeks to “strengthen” supply chain management capabilities in a safe environment and to foster consumer confidence in the “normalization” of the post-coronavirus years.
Using blockchain technology, VeChain claims that the platform that could be created by the Chinese government would give the products in the supply chain the equivalent of “an official seal”. That way, fewer human resources would be needed and there would be a structural “optimization”, as VeChain says:
As the later efficiency increases, they can achieve amazing human efficiency growth. Realize inverse entropy and cost reduction in large organizations, and go against the current in the post-epidemic era.
VeChain has already announced its cooperation with the Chinese government to create a blockchain platform for the health sector. The announcement was made in conjunction with a delegation from the Huabei Province government and VeChain’s partner, DNV GL. The objective of the platform is to create a standard for risk management, data collection, and implementation of measures to prevent situations such as those caused by Covid-19.
VeChain reduces cost and improves supply chain in China
In addition, VeChain indicated that a platform based on blockchain technology to track the food supply chain could integrate an inspection mechanism. Thus, regulators and authorities could “ensure” that there are no discrepancies between products and the information stored in the blockchain.
This would reduce friction in such processes and decrease costs by allowing self-certification. In addition, big companies would be able to track down substandard products and avoid economic losses by quickly removing them from the supply chain.
Therefore, VeChain sets out the results that its cooperation with the giant Walmart in China has had and uses them as an example of what the government platform could be in the future. Launched in June 2019, the platform allows Walmart to access a system with information on logistics, the origin of a product, number of inspections, storage, among other important data. VeChain adds:
All data becomes an authoritative archive record because it cannot be tampered with, and it is shared by all parties in real time, so as to effectively sort out the information process, reduce the communication cost of the enterprise, and open up all the information links that were originally time-consuming, labor-intensive, and unclear.
Walmart China’s food safety traceability platform has included more than 100 items. These cover a significant variety of products such as vegetables, chicken, pork, among others, as VeChain reveals. In addition, it has had 7 updates iterations until October of this year based on the needs of Walmart’s customers in China. VeChain concludes:
Blockchain technology can efficiently empower enterprises to build a supply chain management system with no dead ends and full coverage, achieve targeted traceability, and effectively solve pain points and blockages. It will become the best choice for large supermarkets to accelerate digital transformation.