Supply Chain Traceability, Blockchain and Stranger Things.
I have been interacting with a lot of Blockchain evangelists lately.
There was one whose ambition was to IoT tag fish and put all the information on a Blockchain. “Every fish will tell its story.” he said. “Of where it came from, who caught it, who packed it and who transported it”. All I could mumble in response was, “A talking fish on my plate, will be interesting”.
Absolute traceability is a one hit wonder and anyone aspiring for it should be well aware of the journey and its pitfalls. Blockchain is a tool that could help you on the journey; one of the many tools that will come of use. It is neither a panacea nor a solution; and hence you should decouple Blockchain from your supply chain traceability strategy. Truth that had to be told.
Start with some basic questions about your manufacturing or processing supply chain instead.
Why do you need to achieve traceability? How severe is the impact on your consumers, operations, reputation and financials if you don’t know where your products are coming from?
Industries such as food and life sciences would baulk at opacity in the supply chains, while there will be industries where it is not mission critical to have traceability.
Is it really YOUR supply chain? For your product categories, what are the key processes? Do you have any visibility of who performs these processes? What is your sphere of control or influence on these processes?
The answers would depend on the complexity of raw materials and intermediates; and the geographical spread of the supplier network.
Does every stakeholder in your supply chain, involved in production, processing and distribution have an incentive, penalty or motivation to provide you with accurate and timely information?
By now, it should be clear that traceability hinges on attaining visibility of the supply chain process providers. Also, whether they would reliably and consistently provide information that will drive traceability.
Do you have the presence and influence to drive co-opetition in your industry?
At some level in your supplier network, the providers would cater to other organisations in your industry or adjoining industry segments. It would make sense to shake hands and form a consortia involving competitors, industry bodies, certification agencies and others who play a part in enabling and verifying the information. A little bit of love can save a lot of time and money. This is the point in my industry conversations where I have people smirking.
A traceability initiative can be like a journey into the Upside Down; and it is important that you start with a reliable map that will help you navigate your way. Blockchain will be one of your vehicles in that journey. More on that soon.
