{"id":24692,"date":"2017-11-15T18:15:56","date_gmt":"2017-11-15T23:15:56","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/"},"modified":"2017-11-15T18:16:25","modified_gmt":"2017-11-15T23:16:25","slug":"can-the-worlds-largest-retailer-scale-farm-to-table","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/","title":{"rendered":"Can the World\u2019s Largest Retailer Scale Farm to Table?"},"content":{"rendered":"

After the Chinese government fined Walmart for multiple food safety violations including mislabeling donkey meat as fox meat and selling expired duck meat, Walmart needed to regain trust from the Chinese consumer.[1]<\/a> A rising Chinese middle class is demanding higher quality as 38% cited food safety as a problem in China in 2009 up from 12% in the prior year.[2]<\/a> Walmart\u2019s public goal in 2013 to invest $48M in food safety audits and controls only accommodated for a poor supply chain through added controls and food safety training.[3]<\/a>\u00a0 Supply chain quality and transparency is becoming necessary for Walmart to continue to sustain growth to serve the world\u2019s largest population.<\/p>\n

Beyond China, the World Health Organization reports that one in ten falls ill to food-borne diseases globally, and 420,000 die from contaminated food annually.[4]<\/a>\u00a0 A recent outbreak of salmonella in papaya in the US took the government two months to trace the source farm of the contamination[5]<\/a>. The lack of food traceability and information about the supply chain causes some of our greatest issues in food such as contamination, expensive recalls, and food-borne illness.<\/p>\n

However, recent advances in digitalization, specifically blockchain, have opened possibilities to increase supply chain transparency and to correct issues quickly as they arise. Blockchain consists of a series of decentralized servers that can be accessed with permission, but whose data cannot be altered or edited.[6]<\/a>\u00a0 As the food supply is decentralized, a decentralized solution makes sense.[7]<\/a> Walmart is piloting a food supply chain traceability initiative in China through a partnership with IBM and Tsinghua University[8]<\/a>. \u00a0\u00a0Their promised $25M investment over five years moves to correct versus merely accommodate for supplier issues as information flows freely on the source, treatment, and passage of food Walmart procures.[9]<\/a> As a piece of fruit progresses through the supply chain, information is stored via blockchain on any transaction that is made or any treatment given.\u00a0 Chinese consumers will soon be able to scan the fruit in Walmart and see exactly where it was sourced and where it\u2019s been.[10]<\/a> Historically, something like this might have taken almost a week to provide and is now available in seconds.[11]<\/a>\u00a0 Walmart\u2019s pilot has successfully traced a mango to its plant, and pork to its farm.\u00a0 Walmart is planning to scale the use of blockchain in China first due to the size of food consumption and support from the Chinese government on food safety.[12]<\/a>,[13]<\/a><\/p>\n

As the entire supply chain looks to provide transparency, it will require engagement from all parties to fully gain the benefits of blockchain.\u00a0 While partial transparency helps the consumer know which farm a vegetable came from, it does not tell the whole story of which trucks, warehouses, or other handlers touched the food.\u00a0 Walmart is well positioned to command this level of engagement from its suppliers, but building out this expensive infrastructure would take mutual belief in the need and desire to please the consumer through traceability. While IBM is pioneering blockchain food supply chain efforts with other large food companies such as Nestle, Tyson, and Costco, every element of the supply chain must begin to move to make the system effective.[14]<\/a><\/p>\n

Additionally, Walmart can capitalize on this technology in the US to differentiate its produce sourced organically and priced at a premium by providing trust to its consumer through transparency.[15]<\/a>\u00a0 Many retailers claim organic sourcing, but few can validate this claim leaving consumers uncertain by high prices.\u00a0 Walmart could dispel this with blockchain.\u00a0 Also as sustainability becomes a table-stake in the food industry, Walmart can make supplier decisions based on financial, quality, and socio-environmental impact. Through blockchain Walmart should be able to know the carbon emissions of the trucks used to transport the food and even the water supply used to grow them.[16]<\/a><\/p>\n

But what is the cost and who is going to bear it?\u00a0 Additionally, blockchain seems to still be a system based fundamentally on trust and reliability of each member of the supply chain to accurately input their data. Could the system break down if suppliers or distributors are dishonest? What good is more information if it is not true?\u00a0 While consumers lack trust in sourcing and food safety, how much really will they have time to digest that much more information about where their food came from?<\/p>\n

Word Count: 709<\/p>\n

[1]<\/a> Laurie Burkitt, \u201cWal-Mart to Triple Spending on Food-Safety in China\u201d, Wall Street Journal, June 17, 2014, Accessed Nov 2017, https:\/\/www.wsj.com\/articles\/wal-mart-to-triple-spending-on-food-safety-in-china-1402991720<\/a><\/p>\n

[2]<\/a> Ibid<\/p>\n

[3]<\/a> Ibid<\/p>\n

[4]<\/a> Roger Aitken, \u201cIBM Forges Blockchain Collaboration with Nestle & Walmart in Global Food Safety,\u201d Forbes, Aug 22, 2017, Accessed Nov 2017, https:\/\/www.forbes.com\/sites\/rogeraitken\/2017\/08\/22\/ibm-forges-blockchain-collaboration-with-nestle-walmart-for-global-food-safety\/#633b47883d36<\/p>\n

[5]<\/a> Bien Perez, \u201cCoalition to Drive Global Food Safety Efforts with Blockchain Platform Initiated in China,\u201d South China Morning Post, Aug 22, 2017, Accessed Nov 2017, http:\/\/www.scmp.com\/tech\/enterprises\/article\/2107847\/<\/a> coalition-drive-global-food-safety-efforts-blockchain-platform<\/p>\n

[6]<\/a> Maras, E. (2017, May 03). How blockchain technology brings new efficiencies and transparency to the food supply chain. Pizza Marketplace.News Features Retrieved from http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/docview\/1894621182?accountid=11311<\/a><\/p>\n

[7]<\/a> Raja Ramachandran, \u201cThe Blockchain of Food,\u201d Forbes, Oct 23, 2017, Accessed Nov 2017, https:\/\/www.forbes.com\/sites\/themixingbowl\/2017\/10\/23\/the-blockchain-of-food\/#2d3afa24775f<\/p>\n

[8]<\/a> Meng Jing, \u201cHere\u2019s a Peek at Wal-mart\u2019s Game Changing Plan to Trace Food from China\u2019s Farms to Stores\u201d, South China Morning Post, Nov 6, 2017, Accessed Nov 2017, http:\/\/www.scmp.com\/business\/companies\/article\/<\/a> 2118556\/walmart-led-pilot-project-can-accurately-trace-food-chinas-farms<\/p>\n

[9]<\/a> Ibid<\/p>\n

[10]<\/a> Ibid<\/p>\n

[11]<\/a> Roger Aitken, \u201cIBM Forges Blockchain Collaboration with Nestle & Walmart in Global Food Safety\u201d<\/p>\n

[12]<\/a> \u201cWalmart, IBM, Tsinghua University Explore the Use of Blockchain to Help Bring Safe Food to Dinner Tables Across China\u201d, PR Newswire, Oct 19, 2016, Accessed Nov 2017, http:\/\/www.prnewswire.com\/news-releases\/walmart-ibm-and-tsinghua-university-explore-the-use-of-blockchain-to-help-bring-safer-food-to-dinner-tables-across-china-300347302.html<\/p>\n

[13]<\/a> Meng Jing, \u201cHere\u2019s a Peek at Wal-mart\u2019s Game Changing Plan to Trace Food from China\u2019s Farms to Stores\u201d<\/p>\n

[14]<\/a> Roger Aitken, \u201cIBM Forges Blockchain Collaboration with Nestle & Walmart in Global Food Safety\u201d<\/p>\n

[15]<\/a> Raja Ramachandran, \u201cThe Blockchain of Food\u201d<\/p>\n

[16]<\/a> Maras, E. (2017, May 03). How blockchain technology brings new efficiencies and transparency to the food supply chain.<\/p>\n","protected":false},"excerpt":{"rendered":"

To sustain growth in China Walmart needs to manage a reliable and safe food supply. Their solution partnering with IBM is blockchain. Blockchain will allow consumers to trace the source, environmental impact, treatment, and transactions of any product they buy.<\/p>\n","protected":false},"author":10380,"featured_media":24693,"comment_status":"open","ping_status":"closed","template":"","categories":[2608,154,33,1926,56],"class_list":["post-24692","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-blockchain","category-china","category-food","category-food-supply","category-grocery","hck-taxonomy-organization-walmart","hck-taxonomy-industry-retail","hck-taxonomy-country-china"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nCan the World\u2019s Largest Retailer Scale Farm to Table? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can the World\u2019s Largest Retailer Scale Farm to Table? - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"To sustain growth in China Walmart needs to manage a reliable and safe food supply. Their solution partnering with IBM is blockchain. Blockchain will allow consumers to trace the source, environmental impact, treatment, and transactions of any product they buy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"article:modified_time\" content=\"2017-11-15T23:16:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Walmart-China.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1100\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/can-the-worlds-largest-retailer-scale-farm-to-table\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/can-the-worlds-largest-retailer-scale-farm-to-table\\\/\",\"name\":\"Can the World\u2019s Largest Retailer Scale Farm to Table? - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/can-the-worlds-largest-retailer-scale-farm-to-table\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/can-the-worlds-largest-retailer-scale-farm-to-table\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/Walmart-China.jpg\",\"datePublished\":\"2017-11-15T23:15:56+00:00\",\"dateModified\":\"2017-11-15T23:16:25+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/can-the-worlds-largest-retailer-scale-farm-to-table\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/can-the-worlds-largest-retailer-scale-farm-to-table\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/can-the-worlds-largest-retailer-scale-farm-to-table\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/Walmart-China.jpg\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/Walmart-China.jpg\",\"width\":1600,\"height\":1100},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/can-the-worlds-largest-retailer-scale-farm-to-table\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Can the World\u2019s Largest Retailer Scale Farm to Table?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Can the World\u2019s Largest Retailer Scale Farm to Table? - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/","og_locale":"en_US","og_type":"article","og_title":"Can the World\u2019s Largest Retailer Scale Farm to Table? - Technology and Operations Management","og_description":"To sustain growth in China Walmart needs to manage a reliable and safe food supply. Their solution partnering with IBM is blockchain. Blockchain will allow consumers to trace the source, environmental impact, treatment, and transactions of any product they buy.","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/","og_site_name":"Technology and Operations Management","article_modified_time":"2017-11-15T23:16:25+00:00","og_image":[{"width":1600,"height":1100,"url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Walmart-China.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/","name":"Can the World\u2019s Largest Retailer Scale Farm to Table? - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Walmart-China.jpg","datePublished":"2017-11-15T23:15:56+00:00","dateModified":"2017-11-15T23:16:25+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Walmart-China.jpg","contentUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Walmart-China.jpg","width":1600,"height":1100},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/can-the-worlds-largest-retailer-scale-farm-to-table\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-rctom\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/"},{"@type":"ListItem","position":3,"name":"Can the World\u2019s Largest Retailer Scale Farm to Table?"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website","url":"https:\/\/d3.harvard.edu\/platform-rctom\/","name":"Technology and Operations Management","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-rctom\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/24692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/users\/10380"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/comments?post=24692"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/24692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media\/24693"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media?parent=24692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/categories?post=24692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}