Blockchain brings a new era of transparency and security to the supply chain, from the history of the supply chain to today's challenges.

Let's spend some time covering the Supply Chain before digging into the benefits of blockchain technology.

Definition of Supply Chain

The term itself, "supply chain", appeared for the first time in the Independent newspaper at the start of the twentieth century.

Even if the term is only a century old, supply chains have existed for far longer; they are defined as a network between a company and its suppliers to distribute a specific product to the final buyer (Investopedia).

History of the Supply Chain

One might think that supply chains have emerged with globalisation and capitalism, but in reality, they have been part of our societies since the beginning of civilisation. We can, for example, go back to the Roman Empire, where roads, organised labour, and armies required specific logistics to function.

1 - The second industrial revolution (late XIX - early XX)

We can then fast forward to the early XX century when the Ford T was invented, which started production in 1908 in Detroit; in less than 20 years, Ford would build 15 million models becoming the longest production run until the Beetle appeared.

The only way to produce such impressive amounts was by introducing assembly lines, making supply chain management the new standard in a world shifting to mass production.

Around the same period, another invention became a significant milestone in a newly connected world: containers. This revolution allowed the shipping of goods in a more efficient and voluminous way.

2 - A new tool: the personal computer

After the second industrial revolution, a new tool made an appearance at the end of the century, the personal computer. The tracking and management of supply chains were brought to a whole new level with the accessibility to computers. PCs allowed companies to share information with no delay, recording any information and documenting each transaction in a digital form.

3 - A new way to consume

Globalisation has brought humankind a lot of resources and luxuries one could only dream of a century ago. Consumerism was at its peak, and we have only recently realised the aftermath of living in a world where producing and consuming had been our primary focus.

New technologies created more efficient and cost-effective supply chains, mostly with internal focus. Today, consumers have a preference for short-travelled products, fair labour and high quality. Clients want to consume in an eco-responsible way but find themselves, more often than not, fooled by greenwashing and other debatable marketing solutions.

Blockchain Technology, a Solution

Now that we've covered the history of the supply chain and how it has brought us to today's connected world, let's focus on blockchain technology, its first examples, and how it can be used as a bulletproof ledger.

1 - An immutable ledger

The Cambridge Dictionary defines a ledger as a book where things are regularly recorded, especially business activities and money received or paid.

While a ledger is good practice, digital or not, there are several vulnerabilities due to the possibility of altering its content, and not all entries can be proven correct. However, new technologies have found a solution to the limit of ledgers; the blockchain. Blockchain technology appeared theoretically in the nineties, with Stuart Haber and W. Scott Storneta trying to implement a system that would avoid tampering with records. The first real-world example appeared in 2009 when Bitcoin launched, the mother of all cryptocurrencies achieved to offer a decentralised and tamper-proof solution to send the currency with only an internet connection needed.

The Bitcoin network brought a lot to blockchain technology and allowed other projects to flourish. At the same time, bitcoin is focused on the transfer of value with no central power; other projects like Ethereum allowed participants to communicate with the blockchain using its Ethereum Virtual Machine (ethereum.org) and smart contracts (ethereum.org).

Newer blockchain technologies allow users to store information in an immutable and transparent way, enabling them to communicate with the outer world about their efforts to deliver the highest standards. Data can be public or encrypted on the blockchain, depending on use cases.

2 - Blockchain technology for supply chains

Using blockchain technology grants companies a new way to track their productions and deliveries while sharing the information that matters to their clients. By giving consumers a controlled window into companies, a new form of trust and loyalty is created.

What does Gaupa Labs offer ?

Gaupa Labs was founded to solve the challenges experienced in a shifting world, including improved control over all steps in production, reduced overhead cost and transparency towards the customer. Our team has a broad background, including software engineering, hospitality and the food industry. We believe in a new way to consume, bringing customers and companies closer through transparency.

We offer a tailor-made solution enabling companies to store and record shipping, transactions, and production on a blockchain using the latest technology. The company can freely choose what information is available to their customer. At the same time, some information remains internal and is encrypted to the highest standards, ensuring only the right individuals have access to it. The consumer no longer needs to trust claims made by the companies they decide to support as they have access to information like never before. In a world where greenwashing is a marketing strategy, blockchain technology is the only answer.

Our end goal is to build together a community bringing consumers and producers closer while making a difference.

If you want to know more about Gaupa Labs, feel free to contact us.

Gaupa Labs

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