One of the main topics covered in this blog is the ESG transparency of the value chain as a business strategy. But how to transform this strategy into practical actions? One of the ways, without a doubt, is to start showing the origin, or journey, of your products to the consumer. In this regard, blockchain technology can be used to give more reliability and security to the process. In this article, we’ll talk about how blockchain material traceability helps deliver more confidence.

But why traceability?

First, it is important to understand the motivations behind a materials traceability process. There are several reasons for your company to adopt this practice for its products. Among them, we can mention:

  • Ready for a recall: Chances are you’ll identify a production failure that could endanger your consumer, so recall is a necessary practice. If you do not have batch control, it is very unlikely that you will be able to request the specific return and thus preserve your brand.
  • Quickly find the problem: Sometimes you can find a problem (quality, for example) in the product and need to identify the source (supplier) that delivered the input. If you have the entire process tracked and recorded it is easier and faster to find the probable point of failure. In many cases, with everything tracked, it is even easier to request compensatory measures from your supplier.
  • Supply chain visibility: It is the internal visibility (transparency), that is, you can “see” your supply chain. With a “map” of suppliers, delivery and receipt flows, you can optimize your supply chain, seeking to reduce costs and even develop new business models with the members of your chain.
  • Regulatory requirement: In this case you don’t have much choice. You need to do the traceability, as it is required by law.
  • Show transparency: In this case you want to deliver a better experience to your consumer. He wants to give the assurance that the product he is consuming has a proven and controlled origin. Surely this process improves your brand’s reputation.

Mas, afinal, o que é rastreabilidade?

Agora que você já sabe as vantagens de fazer a rastreabilidade de um produto, vai entender melhor no que Now that you know the advantages of tracking a product, you will better understand what this process entails. According to Wikipedia, in practical terms, tracking is knowing “what” (the product or good), “where” it came from (the origin) and “where” it went (the destination). With this in mind, the tracking definition requires three basic data:

  • The product needs to be identified (what is being tracked?);
  • The origin must be known (where does the product being traced come from?); and
  • The destination must be defined (where will this product be shipped/shipped?).

In a complex supply chain, obtaining, recording and organizing this data is challenging. That’s why the adoption of technological tools (such as eumostro) is of fundamental importance, since keeping data on paper or spreadsheet can bring complications. Another point is that you can usually get data from your direct supplier, but not from lower layers such as the “supplier supplier”. For security and privacy reasons, chain data is generally not shared with “non-direct” links.

That’s where the advantage of using a trusted protocol like blockchain comes in

eumostro blockchain hyperledger fabric
Hyperledger Fabric blockchain framework is used by eumostro to record traceability events

It is precisely in the matter of sharing information between the links in the chain that do not necessarily trust each other that the blockchain trust protocol has proven its value. In this case, as the data is private and can go to members of the chain that are not directly connected to you (a customer’s client, for example) whoever delivers the information wants to make sure that:

  1. My direct customer has access to full information (he has it anyway by other means), but mostly;
  2. That his client or the consumer, for example, has limited access to information, that is, they may even know the source of the input, but do not have access to values, quantities and negotiated conditions.

And as promised earlier, in this article, we’re going to talk about how blockchain material traceability helps deliver more confidence. In the case mentioned above, the blockchain platform provides security to the links in the chain that their information will only be accessed by those who have permission (and rights) to it. Thus, there is no risk of leakage or sharing of business-sensitive information to unauthorized members.

Another point is that the consumer can have access to the entire value chain of his product (if everyone who participates in it is willing to use the eu-sample, of course ;-). As the batch moves between the different links and has its added value, the consumer can follow the trajectory, know the origin and “times” that the product had until it reached your hand. This information is highly desirable, as it enables each of us to make better purchasing decisions (choosing to consume local products, for example), or opting for chains with more or less intermediaries.

Eumostro does the traceability on the blockchain

We at eumostro can help you with the above challenges. This is because we have developed a technological platform that helps brands register, organize and show the traceability of materials (products) with the security of the blockchain trust protocol. What we managed to register (so far):

  1. Harvesting (or) collecting a product batch: If you have any production or collect inputs (from the forest, for example) to sell or even use in your production, we can register this in the blockchain.
  2. Input batch receipt: When you receive input from a supplier, we are able to record this event, giving compliance to the process.
  3. Processing (or) production of a batch of product: Here it is the internal traceability, that is, the so called “input tree”. This activity comprises you producing / processing a batch of a product that you are going to sell, indicating the inputs used (consequently the origins / suppliers). In case of a recall, this is where you look for information.

When we register these events in the blockchain we are giving immutability to the process, that is, neither you nor we will be able to change the information. This guarantees for the other links in the chain, or even for the consumer, that the information is secure and, in some way, truthful, as it is very unlikely that anyone will record untrue information.

For all the reasons given, don’t waste your time and get in touch with us. Ask for a demonstration on blockchain material traceability and understand how it helps you deliver more confidence.