Multinational software company SAP (Systems, Applications Products in Data Processing) is using blockchain technology to extend its work into supply chains.
According to public information, the German company SAP is the worlds largest provider of enterprise management and collaborative business solutions, the worlds third largest independent software provider, and the worlds second largest cloud company, with more than 172,000 companies in more than 120 countries around the world. A user is running SAP software.
On May 15, Torsten Zube, head of blockchain at SAP, revealed,The company is working on applying blockchain technology to agricultural supply chains through its “Farm to Consumer” initiative.Companies including Johnsonville, Naturipe Farms and Maple Leaf are other collaborators on the project.
The farm to consumer project perfectly demonstrates a common pattern weve seen across many blockchain projects, Zube said in a blog post detailing the initiative."Collaborating across companies on complex value chains, this technology can remove a lot of process steps and friction and build automated trust."
Sap will integrate blockchain into existing global track and trace technology as"An additional layer that complements the core process, resulting in a shared view of data for all stakeholders involved in the supply chain.
According to Zube, blockchain technology could allow companies to track the provenance of food, input demand and supply, and verify and enforce transactions.
Sap also revealed that the company has partnered with Swiss supply chain startup modum.io to further develop the supply chain project. Sap plans to provide further details about the companies collaborating on the pilot project in June this year.
Zube is optimistic about the blockchain and believes that this technology is likely to reshape the current food industry production model.
He explained:
“If companies have access to a complete version of product history, this could lead to a shift from a centralized unilateral supplier-led production chain to a consumer demand-oriented supply chain organized by a consortium.”
He went on to predict:
“The networks of traditional value chains will be replaced by shared data management rights, resources, processes and practices that create opportunities for shared learning.”
The aforementioned promises aren’t SAP’s only forays into blockchain. Previously, the company launched a"Blockchain Co-Innovation Initiative", to explore distributed business processes utilizing peer-to-peer networks. The company is also a member of the Spanish Alastria Alliance, which focuses on inter-company data sharing, and the Blockchain in Transport Alliance (BiTA).
