In order to push ahead with its challenging blockchain venture, Nestlé — the Switzerland-headquartered food retail giant — adopted a “start-up mindset.”
Armin Nehzat, Nestlé Digital Technology Manager, revealed this insight about the retailer’s blockchain development work in the TechWire Asia interview held on Sept. 5.
Tracking products easily
The International Data Corporation (IDC) — a United States-based market intelligence firm — nominated Nestlé Australia last month, for a digital transformation award because of its Chain of Origin” initiative that is geared towards supporting blockchain technology use in the supply chain management.
Nestlé customers can now track their products from the farm to consumption using blockchain – meaning, they will be able to get more transparent provenance and production information from the firm.
According to Nehzat, the project has so far been considerably more challenging compared to most of its other digital innovation plans. For that reason, the firm has chosen to reevaluate its traditional business practices completely:
“It has been testing how quickly we can move as an organization to completely review how we do business. From sourcing products at the micro lot level, all the way through to tracking products individually to the end consumers […]. We are looking to see how this could scale to other product offers. So I guess it’s more of a long term journey than a short term bet.”
He also stated that the aim of bringing out blockchain solutions for retailers was to provide real-world benefits; like, ensuring that customers get the ultimate fresh value.
Other similar ventures
This January, Nestlé in collaboration with BCG Digital Ventures and WWF-Australia conducted a joint blockchain pilot for tracing milk from farms in New Zealand all the way to Nestlé’s factories and warehouses that are located in the Middle East.
The retailer has also taken part in IBM Food Trust (blockchain-based) initiative’s ongoing work, thereby joining Walmart and Unilever (major global retailers).