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Walmart Blockchain-based Supply Chain Management

Sector: Tertiary sector · Industry: Retail · Organisation: Walmart · Maturity level: Production

Walmart uses blockchain technology for complete traceability of food products in the supply chain and reduced tracing time for mangos to 2.2 seconds. The system is based on Hyperledger Fabric in partnership with IBM and VeChain for the China platform. Since 2018, over 25 products from various suppliers are being tracked in production, including leafy greens, strawberries, dairy products, and meat.

Documentation status

Description

Walmart uses IBM Food Trust (Hyperledger Fabric) for real-time food traceability. The pilot test with mangoes showed: traceability time reduced from 6 days, 18 hours, 26 minutes to 2.2 seconds. This enables precise recalls: only the actually affected batches are recalled, not entire product categories.

After the E.coli outbreak in romaine lettuce in 2018, US authorities took seven days to locate the contamination source — during which time the public continued to consume the contaminated product. Walmart and IBM had already been working on a solution since 2016. The result: IBM Food Trust based on Hyperledger Fabric. Suppliers upload product data via a web interface; IBM writes the chaincode. In the mango pilot test, traceability time dropped to 2.2 seconds (from nearly 7 days). The system enables precise recalls: Walmart can immediately identify the exactly affected batches in case of contamination and recall only these — instead of blocking entire product categories. According to Walmart's letter to suppliers: "We have demonstrated that we can reduce the time to trace an item from the store back to the source to seconds, compared to days or sometimes weeks." From 2020, IBM Food Trust was made mandatory for all Walmart leafy greens suppliers. IBM estimates a 50% reduction in food waste through more targeted recalls.

Perspectives

B2B — organisations perspective

Suppliers who produce correctly are not unnecessarily affected during a recall — because the blockchain precisely identifies the affected batches. No blockchain knowledge is required to get started: a smart device and internet access are sufficient.

B2C — consumers perspective

Consumers benefit from increased food safety: contaminated products can be removed from the market within seconds. Healthy goods remain available, reducing supply shortages during recalls.

Employees perspective

Employees are freed from time-consuming manual product traceability and can focus on strategic tasks. The system automates many routine processes and creates new jobs in blockchain management and data analysis.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

The system mainly uses Hyperledger Fabric, a private blockchain platform of the Linux Foundation, in partnership with IBM. Additionally, VeChain technology is used for the Chinese platform to track 23 product lines and ensure product authenticity.

Implementation examples

Walmart blockchain food traceability

Walmart wanted to improve food safety and be able to respond quickly to contamination in order to avoid losses running into millions. The company needed complete transparency in the supply chain to meet regulatory requirements and strengthen customer trust.

Walmart implemented a blockchain system for food traceability and reduced the traceability time for mangoes from days to 2.2 seconds.

Since 2016, Walmart has been developing a comprehensive blockchain system in partnership with IBM based on Hyperledger Fabric. The system tracks food from origin to sale and enabled a reduction in traceability time from days to 2.2 seconds for mangoes. Over 80% of Walmart suppliers now participate in the blockchain solution, resulting in supply chain operating cost reductions of up to 30% and international shipping times cut by up to 40%.

Cost reduction of up to 30% in supply chain operating costs, reduction of international shipping times by up to 40%, traceability time for mangoes reduced from days to 2.2 seconds.

The system solved the problem of time-consuming manual product traceability and eliminated uncertainties in determining the origin of contaminated products. Disputes between supply chain partners were drastically reduced through transparent, immutable records.

Tags

Supply chain, Traceability, Food safety, Hyperledger Fabric, Smart Contracts

Sources

  1. Walmart's blockchain pilots: lessons learned
  2. Blockchain in the food supply chain
  3. Disrupting the supply chain game, the Walmart way
  4. Walmart supply chain automation Q4 earnings
  5. Blockchain Impact on Supply Chain Efficiency Metrics