How is walmart using blockchain
Introduction
Walmart has been in business for over a century, and it has always been committed to providing the best products and services to its customers. However, as the company grew, it faced challenges in managing its global supply chain, which spans over 47 countries and has more than 10 million suppliers. Walmart’s traditional supply chain management system was time-consuming, expensive, and lacked transparency. To address these challenges, Walmart turned to blockchain technology.
Why Blockchain?
Blockchain technology is a distributed ledger that allows for secure and transparent transactions without the need for intermediaries. The decentralized nature of blockchain makes it an ideal solution for supply chain management, as it provides a single source of truth that can be accessed by all parties involved in the supply chain. Blockchain also enables increased transparency, traceability, and efficiency, which are critical for supply chain management.
Walmart’s Blockchain Implementation
Walmart began implementing blockchain technology in its supply chain management system in 2018. The company partnered with IBM to develop a blockchain-based platform that would enable it to track products from the manufacturer to the store shelf. Walmart’s blockchain platform, called the Walmart Food Traceability System, is designed to improve food safety and quality by providing real-time information on the location and condition of products throughout the supply chain.
Walmart’s blockchain platform uses a combination of IoT sensors, RFID tags, and smart contracts to enable end-to-end traceability and transparency. The platform enables Walmart to track products from the farm gate to the store shelf, providing real-time information on the location, condition, and quality of products. This information is stored on a blockchain, which ensures that it is secure, tamper-proof, and transparent.
Benefits of Walmart’s Blockchain Implementation
Walmart’s blockchain implementation has brought numerous benefits to the company. Here are some of them:
Improved Traceability
Walmart’s blockchain platform provides end-to-end traceability of products, enabling it to track products from the farm gate to the store shelf. This improved traceability has helped Walmart to identify and address quality issues before they become a problem for customers. For example, in 2018, Walmart identified a contamination issue in romaine lettuce by tracking the movement of the lettuce through the supply chain. The company was able to recall over 30 million pounds of lettuce and prevent further contamination.
Increased Efficiency
Walmart’s blockchain platform has also improved efficiency in its supply chain management system. By enabling real-time information on the location and condition of products, Walmart can optimize its inventory management and reduce waste. For example, Walmart uses the platform to monitor the movement of perishable goods and adjust its inventory levels accordingly to prevent spoilage.
Improved Food Safety
Walmart’s blockchain platform has also improved food safety by providing real-time information on the location and condition of products. This information enables Walmart to identify potential quality issues before they become a problem for customers, ensuring that only safe and healthy products are sold in its stores. For example, Walmart uses the platform to monitor the temperature of meat products during transportation and storage, ensuring that they are stored at the correct temperature to prevent bacterial growth.
Case Studies
Walmart’s blockchain implementation has been a resounding success, with numerous case studies demonstrating its benefits. Here are some examples:
Traceability of Beef Products
In 2019, Walmart used its blockchain platform to trace a beef product from the farm gate to the store shelf. The platform enabled Walmart to track the movement of the beef through the supply chain, providing real-time information on the location and condition of the beef. This improved traceability allowed Walmart to identify the source of contamination and recall over 2 million pounds of beef.
Supply Chain Visibility for Soybeans
In 2018, Walmart used its blockchain platform to track soybeans from the farm gate to the store shelf. The platform enabled Walmart to monitor the movement of the soybeans throughout the supply chain, providing real-time information on the location and condition of the soybeans. This improved visibility allowed Walmart to optimize its inventory management and reduce waste.
Conclusion
Walmart’s use of blockchain technology in its supply chain management system has revolutionized the way the company operates and interacts with its customers. By improving traceability, efficiency, and transparency, Walmart has been able to provide better products and services to its customers while reducing waste and improving food safety. As blockchain technology continues to evolve, we can expect more companies to adopt it for supply chain management and other business operations.
