Alibaba Starts Pilot for Blockchain Supply Chain Initiative
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Alibaba Starts Pilot for Blockchain Supply Chain Initiative

Alibaba Starts Pilot for Blockchain Supply Chain Initiative

Alibaba, the Chinese e-commerce giant has already started partnering with several companies in its blockchain-powered supply chain. The project has now been joined by Blackmores and Fonterra, both of which will be working to ship products from New Zealand and Australia to China. The first trial of this blockchain will help the company in pushing its Food Trust Framework, designed on distributed ledger technology.

The project is being carried out by Alibaba Australia/ The company has announced that this will help them in tracing the supply chain in a more efficient way and also experiment with an upcoming technology. It has been widely argued that the use of blockchain networks could help in reducing supply chain costs by as much as 30{ed3edc9b99750d77b233fcf0e32be51fe72571eafb263a095510005e67825b9c} while reducing paperwork. In the food supply chain, it could also help in avoiding the perishing of food products early on. As the entire process becomes digital and can be tracked in real time, it will help in transporting goods with ease, mitigating the chances of perishing.

Their new partners in this project are dairy product supplier Fonterra and health supplements company Blackmores. They will be using Tmall global platform by Alibaba to use the FTT framework. The company is hopeful that the first trials will be very successful and they will be able to create a robust supply chain model that could be adopted in all ecommerce markets of the company.

They also believe that the blockchain technology, that has been used to create cryptocurrencies till date, will be perfect for addressing cases of food fraud and making supply chains faster. Some scrupulous elements may infiltrate the supply chain and pack food of sub-standard quality or add counterfeit ingredients as well.

The Chinese stalwart launched their blockchain project last year to use this innovative technology and combat cases related to food fraud. It was joined by PwC and Australia Post in this mission. Currently, the new partners are also working with New Zealand Post to test run the framework and see how much it could help them in their mission.

Alibaba released a statement that read, “These technologies are designed to authenticate, verify, record, and provide ongoing reporting of the transfer of ownership and provision of products and goods.” The products will be transferred in a trusted cross-border environment and will also be tagged with a QR code. This will help maintain transparency in the system, reduce company costs and boost consumer confidence in the business.

The company reports that food frauds cost $40 billion each year to the global food industry. According to PwC reports, 39 percent of companies believe that their products could easily be counterfeited. A whopping 40 percent believe that it is difficult to detect if the product has been tampered with. These problems can be eliminated effectively using DLT. Alibaba believes that is their next step to fulfill the vison of creating a futuristic infrastructure for trade and commerce.

The results of this system will be available after the Auckland based trial is over.

Article written by Mark Rizzn Hopkins

Mark is a hardcore cryptocurrency fan. He has been following all of this very closely since 2011, and enjoy learning more technical details around blockchain as well as theorizing and architecting new solutions utilizing blockchain. To know more about Mark, follow him on Twitter.