Supply Chain Procurement - Blockchain provides a clean channel for conflict minerals
Raw material procurement, especially minerals from sensitive areas, is one case where blockchain technology potentially provides a solution.
The problem of conflict minerals is rooted from the fact that many of the core raw materials are mined in Africa, where warlords are controlling mines, imposing taxes on miners, creating roadblocks, and ultimately trying to use the payments for minerals to fund the unwanted wars and conflicts. Since artisanal mining is commonplace and affecting the livelihoods of many local people, international corporations are trying to find clean channels for conflict materials. The difficulty to find those channels is mostly due to the complexity of the supply chain to procure the minerals. This constraint limits the access to huge sources of valuable minerals in conflicted areas and makes it difficult for enterprises to purchase materials and support the local economy in those countries.
Many efforts are focused to overcome this challenge. Blockchain technology potentially enables enterprises to solve this problem by using ‘Bag & Tag’ approach in every node in the supply chain. Bag and Tag and electronic tagging systems are being used currently to track and attempt to ensure that minerals are conflict free.
Supply Chain Procurement - Blue-fin Tuna Tracking and Authentication
People consume millions tons of tuna every year, however, the difficulties in tracking the sources where the tuna meat is harvested made it problematic to know whether the seafood industry compromises the well-being of the environment, wildlife, and people.
In such situations, blockchain can be utilized as an audit layer sitting on top of the current system, such as ERP and other data management system, to ensure the legitimate source of the tuna meat flowing in the seafood markets. In this ecosystem, the NGOs will certify the fishermen and every block in the blockchain and provide easily accessible information for consumers.
Supply Chain Procurement - Cotton identification and transaction flow
Blockchain use to identify cotton from its source and ease the transaction of the material by offering reliable information/documentation/credentials. The technology will eliminate intermediaries that can delay the transaction settlements.