Software firm SAP has expanded its role in the blockchain revolution, this time with a blockchain-based supply chain initiative.
On Monday, Torsten Zube – blockchain lead at SAP – announced the company's new Farm to Consumer initiative in a blog post.
“The Farm to Consumer project perfectly showcases a common pattern we see in many of our blockchain projects," Zube explained in the post. “Cross-company collaboration along complex value chains for which the technology can remove abundant process steps and friction, and establish automated trust.”
SAP will work with companies including Johnsonville, Naturipe Farms and Maple Leaf to apply blockchain to the agricultural supply chain.
Zube stated that the technology allows companies to trace food products from its origins, enter requests and offerings, and authenticate and execute transactions.
“If enterprises can access the complete version of product history […] this could result in a shift from a central unilateral supplier-led production to a consumer demand-led supply organized by a consortium of peers,” Zube exclaimed.
Moreover, SAP will integrate blockchain into its existing Global Track and Trace technology to serve as “an additional layer complementary to core processes that creates one shared view on the data from all involved stakeholders contributing to the supply chain."
Zube went on to predict the impact of blockchain technology, stating that “networking along the traditional lines of value chains will be replaced by sharing data governance, resources, processes and practices and lead to joint learning opportunities."
SAP has also revealed a partnership with Modum.io – a Swiss supply chain startup – to further its developments with the technology. SAP aims to provide further details of the companies’ joint pilot projects this June.