Nestlé admits to blockchain tech challenges

Nestlé says it has adopted a “startup mindset” when venturing into the blockchain space, deploying small teams with the ability to solve problems on the go.

In an interview with TechWire Asia, Nestlé Digital Technology Manager Armin Nehzat, discusses the company’s Chain of Origin project, an effort to bring more transparency into the supply chain. “It has been testing how quickly we can move as an organisation 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,” he says.

“People think digital maturity is been able to use buzzwords like blockchain. The reality is that you always need to think what value it adds to the consumer,” he adds. “We believe that blockchain is the enabler for organisations like Nestlé to deliver supply chain transparency but the ultimate value is ensuring freshness to consumers.”

Ad spend

In July, we reported that Nestlé, McDonald’s and Virgin Media had become the first companies to sign on with a blockchain pilot headed up by the Joint Industry Committee for Web Standards (Jicwebs).

They will be joined by their respective media agencies (Zenith, OMD UK and Manning Gottlieb OMD), following calls by Jicwebs in May for the industry to join the project. The companies will participate in the trial during 2019, measuring the impact of blockchain solutions that provide "end-to-end supply chain transparency and clarity around advertising spend."

Further stages of the trial will look to "optimise the supply chain and gain operational efficiencies for all involved." Jicwebs has partnered with Fiducia for the initiative. If successful, the former will consult the industry on how best to roll it out by 2020.

Kat Howcroft, Senior Media and Budget Manager at McDonald’s, said: “This technology offers us the opportunity to see a truly transparent picture of our investment across the digital supply chain. We are also eager to understand the potential impact that this may have on our ROI and efficiency.”