The year 2020 has officially come to an end, and this year was tough for all of us. Meanwhile, Blockchain arose as one of the most anticipat...
Since its advent, the Blockchain technology has created a lot of buzz around various industries. Blockchain technology is often quoted to be revolutionary and game-changing. Although due to its immutable and transparent nature, the above said is true to a great extent, but the operation and the integration of Blockchain technology can be quite confusing.
One of the most common questions here is, are traders going to paying the producers through Blockchain? Or how organizations would integrate this technology into their business operations?
Let’s find the answers to these questions, by understanding the Blockchain and coffee supply chain relationship!
Blockchain and Coffee supply chain
As consumers are becoming environmentally aware, they want their food to be sustainably and ethically produced. Particularly for products such as rice and coffee, which are hard to track and trace, traceability is at high demand from the consumer side.
Following surveys from some credible sources, coffee farmers in India are earning meager profits. This is mainly due to the presence of third-parties and intermediaries between farmers and buyers. By making the coffee supply chain traceable, Blockchain technology provides a benefit of removing middlemen from the coffee trading.
As the information and data stored on Blockchain are immutable, the use of this technology can build trust between suppliers and traders. In addition to the immutable nature of information, this data stored is also transparent. This means that both coffee drinkers and farmers learn about what is being paid at every point of the coffee’s journey.
Want to know what more can Blockchain technology offer to your coffee supply chain? Go through the advantages mentioned below:
Advantages of integrating Blockchain into your supply chain
Utilizing Blockchain techn0logy can help the roasters to directly purchase coffee without any interference from a third party. Blockchain technology allows you to store information that is visible and cannot be edited across the entire supply chain.
Here are a few benefits of Blockchain technology for the coffee supply chains:
- Smart Contracts
One of the greatest benefits of Blockchain technology is the innovation of digital invoices or contracts known as smart contracts. In the coffee supply chain, from the transfer of raw material to roasted beans, various transactions are done by the stakeholders. These transactions need to be done carefully, to ensure the legality and hence transparency for end consumers.
Smart contracts, working on digital ledger technology helps to get greater efficiency and transparency in the modern supply chain.
- Inventory optimization
Due to the digital ledger technology, Blockchain can help you to track the movements of each batch of the coffee beans from producer to roaster. This technology has helped the organizations to support their inventory optimization software and trace the origin, storage, and processing of the coffee beans.
- Visibility in supply chain
Blockchain technology stores the data in the common shared ledger, which makes the data readily available to the stakeholders of the supply chain. Due to the information being readily available, any illegal or fraud can be easily detected, and hence supply chain becomes visible. This transparency helps in reduction of the disputes and delays in the coffee supply chain.
- Real-time product tracking
Blockchain technology helps in the real-time tracking of the product which reduces the overall cost and offers scalability. Blockchain in integration with IoT devices helps to track your shipped product. This helps in the removal of middlemen and save from the risk of costs of duplicity.
To sum up, Blockchain is a decentralized database that functions on digital ledger technology. Blockchain technology is a game-changer for the supply chains and especially the coffee supply chain. This technology helps us to innovatively manage the supply chain to make them more visible, efficient, and traceable. These advantages help to reduce fraudulent activities, and also secure the entire supply chain network. If Blockchain technology is completely integrated into the supply chains, the farmers would no longer depend on the unstable regulatory policies and prices.
If you are eagerly looking for a Blockchain app development organization that can help you amplify your supply chain, then Debut Infotech is your one-stop solution. We have an efficient team of skilled Blockchain developers that would help you to achieve new heights of success.
Talk to our experts at +1-703-537-5009 or visit our website.