The American company Coca-Cola has become the next major multinational to recognize the benefits of blockchain technology. The soft drink manufacturer wants to make full use of blockchain to streamline their supply chain. Time for a first pilot program.
Built by SAP
Business Insiders writes (payment wall) that Coca-Cola’s plan is to use the blockchain technology of the German software company SAP. In the first instance, all transactions are recorded that take place between seventy franchises and bottlers.
Is blockchain the right solution?
Large companies and their hugely complex supply chains existed even before blockchain was introduced by bitcoin. But many companies see advantages in rolling out a blockchain in the entire supply chain of a product and therefore not only within their company. The idea is to be able to follow the product from raw material, to factory, in the truck to the customer.
Coke One North America (CONA) works with 12 largest bottlers to distribute Coke products. These are around 160,000 orders every day. CONA states that by using blockchain, the efficiency and transparency of the gigantic supply chain can be improved. CONA also expects orders to be processed much faster, from months to a few days.
This supply chain handles $ 21 billion worth of value each year. That is therefore worth a pilot.
No more intermediaries
That efficiency has to come because all transactions from different bottlers are accessible on a distributed ledger.
“There are a number of cross-company and multi-party transactions that are inefficient. They run through intermediaries; they are very slow. And we thought we could improve this and save some money, “said Andrei Semenov, the senior manager at CONA.
The pilot program has been extended to all franchises and Semenov claims that its success could lead to a future collaboration between Coca-Cola and Walmart and Target.
Walmart is no stranger to blockchain anyway. In 2017, Walmart started testing IBM’s Food Trust blockchain to track food suppliers. Part of the Chinese branch of Walmart also uses the VeChain blockchain. In addition, there were rumors of its own Walmart cryptocurrency.
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