e-Invoicing & EDI, Supply Chain

Supply chain: blockchain, a guarantee of traceability

Capable of comprising hundreds of phases, supply management involves many people and entities often in different locations. In fact, it generates a plethora of administrative and regulatory procedures: deliveries, imports, traceability, invoicing… which all need their own unique monitoring process. Faced with this complexity accentuated by a lack of transparency from organizations, blockchain is currently shaping up to be a real opportunity for Supply Chain digitization. What can we expect in terms of traceability? Let’s take inventory of the possible benefits.

Published on 19 June 2018 3 min to read

Article

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Summary

Blockchain and traceability: what are we talking about?

Blockchain in a nutshell

Since it was first used in 2008, it has led to the rise of the now famous bitcoin. However, blockchain does not stop at the financial sector. Blockchain technology enables us to store and send information securely and transparently. Its uniqueness: its distributed operating mode with no central point of control.

By extension, we talk about blockchain to refer to a database created with this technology. Shared by different users and with no intermediary, this secure database keeps a record of all exchanges between authorized users so that each user can verify the validity of all blocks in the chain. Blockchain can also be applied to various sectors of activity such as the Supply Chain.

The concept of traceability

Traceability is the ability of finding out where a product comes from and following its route throughout the entire transformation and distribution chain. The requirements for traceability are set by regulations issued by national and international regulatory authorities and vary depending on the type of merchandise. In the European Union, for example, food product traceability is controlled by the European Food Safety Authority.