Modeling food supply chain traceability based on blockchain technology

Abstract

Traceability has become a critical element in supply chain management, particularly in safety-sensitive sectors like food, pharmaceuticals, etc. Upstream (manufacturers, producers, etc.) and downstream (distributors, wholesalers, etc.) supply chain members need to store and handle traceability-related information for providing proof of regulatory compliance to both state authorities and more demanding customers. More specifically, European Union regulations mandate food producers to trace all raw materials/ingredients used throughout their supply chain operations. Consumers also place high expectations on food supply chains (FSC) with specific emphasis on facets related to safety. However, the complexity of modern FSC networks and their fragmentation act as barriers for the development of sound traceability mechanisms. This paper aims to develop a distributed functional model to provide decentralized and automated FSC traceability based on blockchain technology and smart contracts. For assessing the feasibility of the proposed modeling approach, a food traceability use-case scenario is presented. The applicability of the model is further illustrated by the development of a fully functional smart contract and a local private blockchain. The overall benefits of the proposed model are assessed based on a set of predefined Key Performance Indicators (KPIs). The results are of significant value to both practitioners and researchers.