VeChain and DNV GL’s Partnership Signifies a Drastic Improvement to the Wine Industry Supply Chain Management Process
VeChainFraser last edited by
[center]VeChain and DNV GL’s Partnership Signifies a Drastic Improvement to the Wine Industry Supply Chain Management Process[/center]
VeChain’s enterprise platform has become one of the world’s leading blockchain ecosystems that is utilized to address various challenges that customers, distributors, retailers and manufacturers experience on a regular basis. Although the VeChain ecosystem has many important use-cases, today we will focus on the ability of VeChain’s technology to authenticate and streamline global wine supply chain management.
For centuries the wine industry has been built on a strong reputation and it is imperative that this continues. Wine connoisseurs across the world want to ensure that the products they spend their hard-earned money on, are in fact real. VeChain saw an opportunity to use their blockchain as a means of service to prove the validity of specific brands and types of wine to the consumer.
During early 2018, an important partnership was formed between VeChain and accredited registrar and product assurance specialist DNV GL to utilize the VeChainThor Blockchain’s distributed ledger technology. DNV GL created their own system called the Consumer Confidence Index for Fast Moving Consumer Goods (FMCG) by calculating specific data based on industry standards as well as consumer-generated feedback.
When combined, this data analyzes the entire product lifecycle including all aspects of logistics, production, sourcing and consumption. This allows customers to look deeper into the true story of a specific wine bottle’s lifespan by scanning the My Story QR code with their smart phone. The same technology can be used as a product assurance verification tool for food in a similar process.
As noted directly from the VeChain website, “Through this platform, we can facilitate the digital transformation of enterprises. In addition, consumer feedback and big data will be utilized to improve the quality of the goods and services themselves, bridging the gap between legal authorities, product makers, and the end-user market.”
My Story’s embedded QR code and unique digital identity utilizes an Internet of Things tracking system in unison with VeChain’s blockchain that was developed specifically to protect the safety of the customer and prove product validity while completely eliminating counterfeits. Some of the data collected includes weather and growing conditions, soil type and quality, the type of grape and its origin, as well as data from the harvesting, storage and bottling process.
Sunny Lu, the CEO of VeChain, was very pleased with the beginning of the collaboration stating, “Blockchain has many applications beyond the financial sector and I'm glad that DNV GL has recognized the revolutionary impact it can bring to supply chain management. Together, we combine assurance and blockchain to help customers improve trust in their products across multiple dimensions; from quality and safety to performance aspects.”
DNV GL has been in business since 1864 and their services are often used as a basis for international standards because of their amazing business track record and undeniable reputation. The current CEO of DNV GL Henrik Madsen credits the company’s longevity to hard work and sustainable business practices. VeChain only partners with game-changing leaders in specific industries, and it was clear after initial discussions that the partnership would be a great fit.
DNV GL follows a very strict audit process by working directly with their producers each step of the way along the entire supply chain management process to examine and verify that that all information compiled is accurate and correct. This transparency and insight will help businesses display integrity and continue to allow companies to maximize efficiency and run more effective overall business practices.
This is extremely critical because it differentiates between operations that claim to do business the right way and the ones that actually do. At this time, it is estimated that only 1 in 10 food and beverage companies have considered utilizing digital technologies to ensure the authenticity and safety of their products. Thankfully, this trend is quickly changing, within 3 years it is projected that 40% of food and beverage corporations see product digitization as a major priority.
Within the new wave of digital food safety assurance, the most widely used technology today are censors and beacons (44% today, 56% in 3 years) with blockchain technology currently not far behind (15% today, 40% within 3 years). Companies in Asia particularly see significant value in blockchain technology with 57% expected to use the technology in their business practices within the same 3 year period. This number unfortunately, is much higher than most regions in the world.
Luca Crisciotti, the CEO of Business Assurance at DNV GL notes that, “Digital technologies such as blockchain will transform many industries, especially those in the retail sector, but this survey indicates that to many food and beverage companies these technologies have yet to transition from buzzwords to real applications.’’
He continues, “At DNV GL we introduced blockchain to raise transparency in the certification process and to help brands bridge the trust gap between their efforts and consumer’s concerns, but it is clear we must work together as an industry to fully utilize the potential of new digital technologies to improve food safety.”
With VeChain’s application of blockchain technology and DNV GL’s business assurance expertise it will continue to become easier for wine producers to make the best quality products possible. All while reducing costs and their environmental impact at each step along the entirety of the supply chain management process.
One of the attributes that makes blockchain technology so amazing is the use of smart contracts to create trust that sadly doesn’t always exist in our society. For those of you new to blockchain technology a smart contact is defined as, “A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible.”
Overall, VeChain’s blockchain technology provides numerous ways to maintain the integrity of our world. Without ground-breaking solutions such as this example in the wine supply chain management field; our global financial, technological, environmental, social and political systems will continue to be run far below their potential.
Without strong credibility and ethics in all aspects of life the semblance of what is right or wrong on this planet will simply cease to exist. Most people don’t ever want to live in a society like that. VeChain and DNV GL continue to stand up for what is just in this world with every fabric of what they truly represent to all of us. With VeChain blockchain solutions we will continue to build a better world and unite together as one.
Today and Everyday.
(To see full version with all hyperlinks supporting factual data please contact me - I hope everyone enjoys my first article - Thank You - Lars Fraser - Vancouver Island, Canada)
VeChainFraser last edited by
@kevinteowk - Not a problem Kevin! It is my pleasure to contribute any way I can. I hope you enjoy the article I just finished about Plair a few minutes ago. Have a great day! Best wishes from Canada
kevinteowk last edited by
Thanks Fraser for writing this up. Was definitely a good read.