Blockchain, brand esperanto and retailers in the supply chain

To fight against counterfeit, settle disputes and reduce stock shortages in stores, companies must have better visibility on the data of the supply chain. And in this area, the blockchain could allow them to share a common language.

The use of a common language and a common platform throughout the supply chain would allow companies to communicate product information more effectively.

This is the approach defended by the RFID Lab from the American University of Auburn. And for its researchers, blockchain is precisely the means of bringing together trade players whose vocabulary and methodologies differ.

A common platform and language between brands and distributors

For manufacturers, wholesalers and distributors around the world, the digital "language" of product data varies from company to company. The consequence: errors and ineffectiveness, which are estimated to cost $ 181 billion.

Through the CHIP or Chain Integration Project, the RFID Lab therefore hope to reconcile all parties around a common vision of data. The objective is thus to adopt standards common to all supply chains.

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The researchers have just completed an experimental phase using the blockchain technology in order to share data between supply chain partners in a common language and on a common platform.

As the instigators of CHIP explain, the blockchain is used to store the digital transactions linked to each of the products throughout their journey in the logistics chain. Each step is captured using RFID systems, which capture product data.

Each time a product is detected by these systems, a new transaction is created and sent to the blockchain. Different stakeholders can consult and make informed decisions based on these virtual snapshots at different points in the lifecycle of an article, ”explains the RFID Lab.

Data collected via RFID and shared on the blockchain

Several big names in retail have participated in the projects, including Nike, Kohl’s and Macy’s. During the PoC (Proof of Concept), 222,974 products were registered on the blockchain from 12 different nodes of the supply chain.

In retail, this project is the first of its kind to enable the exchange of serialized data between supply chain partners through the blockchain. We want to allow business partners to share granular item-level data with each other, a capability that current systems do not support, ”said Allan Gulley, researcher at RFID Lab.

After the PoC, the working group will now carry out a study on the financial benefits of standardized data capture systems in the most problematic areas of supply chain, such as complaints and chargebacks between brands and distributors.