Coca Cola has announced it will be incorporating blockchain technology into its supply chain. The distributed ledger technology (DLT) is provided by German blockchain startup SAP. Coca Cola will use the technology at bottling companies Business Insider reported on Monday.
The company is using a so-called permissioned business-grade blockchain. Only authorized companies have access to the system, while it still stores cryptographically protected, tamper-proof records. Each of the dozens of suppliers can file orders, which are viewable by everyone using the distributed ledger.
The supply chain should become more efficient. The system can even organize complicated orders. Coke One North America manages 160 thousand order per day. Even the smallest improvement within the supply chain will have a financial impact on the company.
In May this year main competitor PepsiCo already announced its results after a trial. They raised their efficiency by 28 percent. In the case of Coca Cola this blockchain innovation could save them billions of dollars.
Supply chain solutions include order tracking, filing and information about its origin. Currently The Coca Cola Company is using the blockchain solution only internally. If this turns out to be very successful, the company is considering to expand its blockchain and add retailers like Walmart and Target as well.
Walmart already into blockchain
Those who follow the world of blockchain and its adoption among commercial companies, will know that Walmart is already into the technology. They are already using IBM’s blockchain solutions for tracking food, while Walmart China is using VeChain for its food tracking services.
Other supermarkets are also into blockchain technology. For example, Swiss retailer Migros is using the services of blockchain startup TE-Food. Most of these supply chains are closed services. However, projects like VeChain and NEM there are also public blockchain services that can be used for tracking and record keeping. Also in the car industry we see lots of utility for blockchain technology. For example, BMW is using VeChain to combat mileage fraud.
Also published on Medium.