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Considering the needs of customers who are curious about the entire life cycle of their products, many manufacturing companies are trying to meet them, which requires the development of new solutions. Counterfeiting of products is another problem in many industries, to the detriment of both the producer and the consumer. Our goal is to increase trust between consumers and producers, from which both parties benefit by using blockchain technology.
With the introduction of blockchain technology, we can improve in many areas, let’s see what these are:
Traceability plays a major role in the supply chain. Traceability is the ability to document the history, location, or application of something in a documented way.
Transparency plays a major role in compliance with quality standards and in verifying authenticity. Using blockchain technology can reduce human errors, time delays, and added costs over the life of a product.
Today, the technology used has a significant role to play in minimizing and greening CO2 emissions in the supply chain. Effective monitoring of hazardous substances and compliance with environmental regulations throughout the product life cycle can also be well monitored.
It helps increase trust between actors in the supply chain in local and global markets. The information stored in the blockchain is verifiable and unalterable, all activities are recorded, so any disputes that may arise can be quickly resolved based on the available data.
- Cost effectiveness
It minimizes the potential for human error, reduces transaction costs, and can help increase supply chain cost-effectiveness by eliminating third-party intermediaries.
How important is knowing the origin of the product?
We all want to know where our products come from. The knowledge that our products are made from the best quality raw materials through responsible manufacturing is essential for many users. Today, unfortunately, counterfeiting of products is becoming more widespread, and the source of this problem is mostly due to errors in the supply chain.
Counterfeit products cause economic harm to consumers, businesses and the state, but also cause a risk to public health, as products containing harmful substances are sometimes placed on the market. In the event of fraud involving the quality of goods and the counterfeiting of the materials used in them, consumers may come into contact with potentially harmful substances. Counterfeit foods can cause serious damage to health.
Food fraud is estimated to cost the European Union 30-40 million € a year, but these figures are limited to economic damage and do not take into account ethical and public health damage. Roughly 10% of the food and beverages produced are affected by fraud. Food manufacturers can offset this by integrating rigorous and reliable control systems that the Inventori Solutions platform can provide.
Our new project gives producers the opportunity to create tokenized products on the platform. A token is a digitized form of a product or device that represents a physical product in digital space. It is created on the platform using blockchain technology. As part of the process, we receive a QR code where the product data can be viewed and the data stored on the block chain is intended to verify the authenticity of the product. After scanning the QR code on the purchased product, the customer can view the product data and verify the authenticity of the product.
With this solution, we can increase trust between producers and buyers. The token can be used to prove the details of the product creation process. In the case of premium brands, we can create a unique token for each product, so we get a digitized item with added value. Due to its uniqueness, it can be collected, represents higher value and can be proven to be authentic by the token creator. With this advanced tracking system, market participants not only gain a competitive advantage, but are also able to build a higher relationship of trust with consumers.
Trends show that almost everything, including the supply chain, is moving into the digital world, more specifically into the world of the blockchain. In the current situation, the supply chain seems to be the strongest sector pushing for the adoption of the blockchain, it is easy to understand why. Numerous examples of concepts have shown that a blockchain can provide evidence for tracing and proving the origin of foods and many other products. Provided the data is reliable. This last statement is crucial because entering unreliable data can cause just as many problems as it solves.
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