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Food (agr i-food) traceability with blockchains : Destructive technique

Considered as one of the most disruptive technologies, the blockchain (a peer -to-peer

distributed data infrastructure) enables the creation of decentralized currencies (e.g. Bitcoin),

self -executing digital contracts (smart contracts) and intelligent assets that can be controlled over

the internet (smart property) (Kosba et al., 2016) . Recent research on the blockchain has focused

primarily on financial trans actions and distributed ledger systems (Pilkington, 2016) .

New applications of the blockchain technology, beyond financial transactions, are being

experimented with and exploited in sectors such as financial services, insurance, food, health

care and gover nment. Within the supply chain, some compelling cases of blockchain adoption

have been identified. For example, the blockchain can be deployed as a means of enabling a

record of complete provenance details for each component part of an aircraft. These deta ils can

be accessed by each manufacturer within the production process (Gupta, 2017) .

Dole, Driscoll ’s, Golden State Foods, Kroger, McCormick and Company, McLane

Company, Nest le, Tyson Foods, Unilever, Walmart and others started to collaborate with IBM to

further champion the blockchain (IBM, 2017) . Blockchain deployments in practices are

mostly in the pilot stage, with no evidence of large -scale adoption within the supply chain.

Consequently, there is limited empirical evidence as to how the blockchain has benefited or

disrupted existing supply chains (Wang et al., 2019) .

Food waste and how it is helped by traceability

Hubbard (2003) found that trucks using an on -board computer (OBC) have utilization

capacity that is significantly higher (13 %) compared to trucks not using this technology

(Hubbard, 2003 ). This is an example specific to transportation that illustrates how a tracking

system can improve productivity by keeping fully loaded trucks on the road a higher proportion

of the time.

Identify the gap in the previous work

There is no general agreed conceptual framework or theory for the realization and use of

traceability in the food supply chain. The reasons for the inadequacy are attributed to low

operational levels from farmers (Folk erts and Koehorst, 1997), information obstacle among

different stakeholders ( Caswell et al., 1998 ), and inefficient decision -making syst ems/models

(Ahumada and Villalobos, 2009). New conceptual frameworks, effective supporting tools,

integrated models, and enabled technologies are needed further investigation ( Talaei et al.,

2016). Various data collection devices such as sensors, smart ph ones, and GPS have different

data formats that are usually unstructured and heterogeneous. Integration and sharing of these

data among the food supply chain are extremely difficult ( Pang et al., 2015 ). 

Regarding the complexity of food supply chain, some important issues involving waste, re -use of

resources, facility sharing, greenhouse gas emissions, and holistic lifecycle management are still

unaddressed ( Genovese et al., 2017 ). Although previous studies have demonstrated that

traceability system implementation is a com plex task, the traceability literature still lacks in important discussion of what factors predicate firms to create and implement effective

traceability initiatives throughout the supply chain. This is particularly of initiatives beyond

those prescribed b y law and in specific industries (e.g., food/ agriculture/information

systems/electronics). The use of a data -centric approach to supply chain design is the epitome of

competing in global markets today. Of interest is ‘Blockchain Technology ’; its signal im portance

can be gauged from its role in developing cryptocurrency Bitcoin, a digital monetary system.

Tracking of food produce is a preponderant issue in the food and agri -business sector. Recalls

and safety issued can be traced from origin and the locatio n too. It is estimated that by 2021.

there will be 28 billion IoT connected devices worldwide. By adopting blockchain in an IoT -

enabled supply chain network, a billion -dollar manufacturer could save many millions of dollars

each year — a determination that ’s based on an examination that was limited to supply chain

logistics and storage and excluded other elements of the traditional supply chain (

https://www.bcg.com/publications/2018/pairing -blockchain -with -iot -to-cut -supply -chain -

costs.aspx ). . There are cases studies, theoretical analyses and literature reviews about

traceability, but none of these studies has been generalized to an industry popu lation. The studies

cited in this report are related to traceability, but none can be considered an empirical analysis

that can be extrapolated to the industrial sector.

Plan how we will fill the gap

The main questions food companies face is whether, how , and with whom they should start

Supply chain management activities. They should be able to analyze what Supply chain

management can do for them and find out what the consequences might be if a Supply chain

view is taken together with one or more supplier (s) and/or customer(s). While supply chain

pairing of IoT with blockchain is still in its early stages, the ability of these technologies to help

companies reduce their dependence on intermediaries, minimize reimbursement delays, and

enable more efficient batching and routing could deliver substantial returns.

Our research objective was therefore to contribute to the body of knowledge on Supply chain

management by developing a step -by -step approach that could generate, model and evaluate

Supply chain scenarios in specific food Supply chains . That is, we aimed to develop:

➢ a research method to analyze a food Supply chain and to generate several Supply chain

scenarios that are estimated to improve the current Supply chain performance.

➢ a research method to assess the impact of different Supply chain scenarios for a food

Supply chain on Supply chain performance and to identify a ‘best practice ’ Supply chain

sce nario.

Companies must act quickly to take control of data growth, complexity and chaos. That

includes focusing, simplifying and standardizing data analysis through an enterprise data

management strategy, and exploring the range of possibilities afforded by machine learning, IoT

and blockchain. Those that do will be getting meaningful insights that truly matter to their

business. As the more volatile and complex future rushes toward them, they will be first to detect

changing market conditions and trends, an d most importantly they will be able to innovate and adapt more quickly. They ’ll continuously evolve their supply chains, business models and

operational processes from a position of strength derived from those insights. Those that don ’t

will find themselv es at a significant disadvantage. Each component of the supply chain, such as

procurement, operations, warehousing, logistics and marketing, could be analyzed further to

determine their respective contribution to traceability performance. The type of syste m used

within the plant could also be analyzed more in -depth in order to better understand the

components that are impacting the performance (net benefits) of traceability. This could again be

investigated through a survey of the industry, but it could als o be achieved through industrial

engineering research. This would allow a better understanding of how an electronic traceability

system could enhance the effectiveness of tracing practices. The results of the industrial

engineering analysis could then be s ubjected to a cost -effectiveness analysis to identify potential

cost reductions. This type of research could be carried out in the processing sector or even along

the supply chain of a specific industry. Such additional research could help improve the cost -

effectiveness of traceability systems and enhance the productivity of agri -food industry .

Survey Design

The data used in this study will be obtained from a survey. The survey will be designed to

provide information on firm characteristics, food safety and traceability system implementation

and operation. The questions related to traceability will be designed to collect information related

to the reasons to implement, problems related to implementation and maintenance, costs of

implementation and operations, and the impact on the system of plant production and

performance. The survey will also be designed to collect information on traceability practices

such as recall experience and characteristics of the system.

Conclusion

Traceability has become a priority for food processors mainly due to the need to reduce

food safety risks as well as to satisfy regulatory requirements. Further reproduction prohibited

without permission. consumers, thereby reducing food borne illness and p ositively impacting

public health. Traceability also has economically significant impacts related to marketing,

logistics and supply chain purposes. This research will study how traceability can contribute to

competitive advantage by improving recall scope and reducing risk of recall, increasing market

access or price obtain for products and improving supply chain performance. This research will

be undertaken to understand how variables related to regulations, recall improvement, market

response and supply chain improvement impact the perceived net benefits of traceability.