Nestle Unveils Plans For New Supply Chain Blockchain Platform Pilot

Nestle Blockchain technology pilot program supply chain Magdi Batato

Nestle has announced plans for a fresh pilot program to track produce throughout its supply chains, becoming the latest global producer to turn to blockchain technology.

The world’s largest food and drinks company by revenue, Nestle announced it would work with the Open SC platform to develop the model, which will allow consumers to check the origins and provenance of different types of produce throughout the Nestle supply chain.

Initially, the pilot will allow consumers to track milk from suppliers to Nestle factories and production facilities in the Middle East, echoing similar platforms already being used by a number of large grocery retailers and supermarket chains.

The pilot is set to last for a period of six months, during which time Nestle will evaluate “feasibility, viability and scalability of the system,” to establish how effectively the technology could be used at scale.

The service is expected to use QR codes on produce, which consumers can scan through a mobile app. This is also expected to be integrated with a web platform, which customers will be able to use to track food and drink throughout the supply chain.

According to a Nestle spokesperson, the firm has turned to blockchain to ensure accurate information is easily accessible and seamless for consumers and other stakeholders.

“For us, it is key that the access to the information is as seamless and easy as possible in order to have participation and traction with stakeholders and consumers.”

Magdi Batato, Nestle’s executive vice-president, said the firm hoped the technology would allow consumers to make informed buying decisions more easily.

“We want our consumers to make an informed decision on their choice of products – to choose products produced responsibly. Open blockchain technology might allow us to share reliable information with consumers in an accessible way.”

Beyond milk produce, there are plans to roll the technology out to cover other ingredients and supplies, including most notably palm oil – a subject of particular concern to an increasing number of ethically focused consumers.

The platform is being developed on Open SC infrastructure, the product of a collaboration between WWF-Australia and The Boston Consulting Group Digital Ventures.