News

Blockchain to revolutionize the supply chain

News

Blockchain to revolutionize the supply chain

Media Release

September 30, 2019

In times of globally distributed value creation networks, supply chains are becoming increasingly complex and vulnerable to failures and disruptions. Transparency is therefore becoming increasingly important and is an important component of modern supply chain management. Therefore, Innosuisse launched the project "Blockchain and Internet of Things (IoT)-based Supply Chain Transparency and Automation" at the Institute for Supply Chain Management in St. Gallen.

More security and transparency

The blockchain technology is designed to provide the required information faster, more securely and more transparently. The technology promotes the traceability of all upstream and downstream supply chain operations, ensures compliance with various regulations and creates trust. This makes the technology particularly interesting for the pharmaceutical industry, which is constantly striving to create more transparency and security in the supply chain. In the food industry, the demand emerges primarily from the increased consumer awareness. Today's customers want to know where the food comes from and which ingredients have been used.

In order to meet the required transparency, the blockchain technology with its properties is of great importance. The blockchain is a decentralized, distributed database system in which transaction data is synchronized in real time via the network. Each participant of the blockchain network thus receives the latest transaction data as well as the entire history of all transactions stored in the blockchain. Due to the decentralized distribution and constant synchronization of the data, it is extremely difficult to manipulate them.

Project team is ready to start

Some research and development work is still needed to exploit the potential for supply chain transparency. For this reason, the Innosuisse project "Blockchain and IoT-based Supply Chain Transparency and Automation" was launched at the Institute for Supply Chain Management in St. Gallen.

The project consortium pursues three innovation goals. One objective is to develop a supporting procedure for the selection and implementation of suitable supply chain transparency solutions. Furthermore, the project focuses on the continuous assurance of status information along the entire supply chain with the help of blockchain technology. On this blockchain-based end-to-end status information, individual processes in the supply chain will then be automated, for example through the use of smart contracts.

Innosuisse is funding the project for the next two years. The main implementation partner is the young Zurich-based company Modum, which offers IoT- and blockchain-based solutions for supply chain monitoring in the pharmaceutical industry. Further project partners are the pharmaceutical company Vifor Pharma, the food company Hilcona, the logistics service provider Grieshaber Logistics Group AG, GS1 Switzerland and SAP (Schweiz) AG.

The entire project consortium is thrilled about the cooperation and looking forward to the first deliverables.