An American University study has proved the viability of blockchain as a common platform for supply chains.
The Auburn University RFID Lab, in collaboration with GS1 US, completed a proof-of-concept that demonstrates the effectiveness of blockchain and radio frequency identification (RFID) technologies to improve serialised data sharing in the retail industry.
Simply put, what they found was that when distributed ledger technology is merged with supply chain management, companies can make reverse logistics more efficient. This means better product tracking, an improved product history and even better invoicing.
Working with major retailers such as Nike, Macy’s, Kohl's and IBM, researchers tested a blockchain-based system for tracking products throughout the supply chain.
The findings confirmed that a blockchain network was capable of sharing item-level data encoded in RFID tags between the participants.
In addition, not only were partners able to transmit data more directly and efficiently, they also maintained ownership of their data.
“It is truly ground-breaking because it provides a vision into the future of information exchange in retail," said Justin Patton, director of the Auburn University RFID Lab. "By exploring the intersection of RFID and blockchain technology, we've taken an important step in our mission to help rid the retail supply chain of costly errors and inefficiencies caused by outdated processes and legacy systems."
He said later this year, the lab would launch a follow-up pilot study, focusing on the financial implications of data exchange automation.