- By integrating Avery Dennison’s smart labels with VeChain’s ToolChain, businesses can achieve end-to-end traceability.
- This offers consumers verifiable data on product origin and lifecycle, addressing increasing demand for transparency post-COVID-19.
- The combination of blockchain technology and IoT devices enables real-time data collection and immutable record-keeping, tackling inefficiencies and visibility gaps in fragmented supply chains, crucial for the food industry.
- The COVID-19 pandemic has underscored the importance of digitalization.
- The VeChain-Avery Dennison partnership demonstrates how technology can drive efficiency, sustainability, and trust across global supply chains in an increasingly digital-first world.
The 14th International Internet of Things Exhibition (IOTE 2020), held in Shenzhen, China, from July 29 to July 31, 2020, brought together more than 800 enterprises and over 130,000 attendees from industries ranging from retail to automotive. During the event, VeChain and Avery Dennison Intelligent Labels demonstrated their joint “Blockchain + IoT” solutions, designed to address some of the most pressing challenges of modern supply chains.
This partnership aims to push toward the digital transformation of industries grappling with the complexities of supply chain management, particularly in the food sector, which has faced increased scrutiny due to the COVID-19 pandemic.
The Growing Need for Transparency in a Post-Pandemic World
The pandemic has heightened consumer demand for transparency and safety in supply chains, particularly within the food industry. According to an IBM study, 71% of consumers are now willing to pay a premium of up to 37% for products that offer full traceability and transparency. Yet, the food supply chain remains highly fragmented, with 70% of firms experiencing “visibility gaps” between suppliers and internal systems.
This is where technologies like blockchain and IoT can be helpful. By enabling end-to-end visibility, they enhance trust and reduce inefficiencies. A report by Cointelegraph Consulting estimates that the “Blockchain + IoT” integration could save the global food industry over $100 billion annually. Furthermore, by 2023, blockchain is expected to track 10% of all food products globally, transforming the way industries manage supply chain data.
VeChain – Avery Dennison Partnership
VeChain, established in 2015, has positioned itself as a leading enterprise-grade blockchain platform designed to address real-world business challenges. Its proprietary ToolChain platform provides a one-stop data-as-a-service (DaaS) solution that empowers enterprises to seamlessly integrate blockchain technology into their operations. With partnerships spanning industries and regions—including Walmart China, BMW, and H&M—VeChain has a proven track record of delivering scalable and effective solutions.
Avery Dennison Intelligent Labels, on the other hand, brings unparalleled expertise in IoT-enabled labeling solutions. With a global footprint in over 50 countries and 2019 sales exceeding $7.1 billion, Avery Dennison has been a pioneer in smart labeling and RFID technologies, driving efficiency and reliability across supply chains. Together, the two companies are uniquely positioned to address the challenges of supply chain transparency.
Showcasing Blockchain-IoT Solutions at IOTE 2020
During IOTE 2020, VeChain and Avery Dennison demonstrated how their combined technologies could transform the food supply chain. By integrating Avery Dennison’s smart labels with VeChain’s ToolChain, businesses can achieve real-time, end-to-end traceability. This solution enables enterprises to:
Digitally track the lifecycle of products such as fresh produce, dairy, and imported goods.
Provide consumers with verifiable data about a product’s origin, journey, and storage conditions.
Reduce inefficiencies and build trust through transparent and immutable records stored on the VeChainThor public blockchain.
The partnership also emphasizes the ease of implementation. VeChain ToolChain features built-in templates for food traceability, minimizing the need for complex technical development. This makes the solution accessible to businesses of all sizes, from small-scale food producers to global retail giants.
Addressing the Challenges of Food Supply Chains
The food supply chain is one of the most intricate and fragmented systems, with numerous stakeholders ranging from farmers and distributors to retailers and end consumers. These complexities often lead to inefficiencies, delays, and a lack of accountability. The pandemic has further exacerbated these issues, as consumers demand greater assurance about the safety and authenticity of the food they consume.
By leveraging blockchain and IoT, VeChain and Avery Dennison’s solution addresses these pain points head-on. IoT devices embedded in smart labels collect real-time data on factors like temperature, humidity, and handling conditions. This data is then securely recorded on the VeChainThor blockchain, creating an immutable digital record that stakeholders can access at any point in the supply chain.
The Broader Implications of Digital Transformation
The “new normal” brought about by COVID-19 has accelerated the adoption of digital technologies across industries. For the food sector, this represents an opportunity to embrace innovations that not only address immediate challenges but also lay the foundation for long-term growth and sustainability. Blockchain and IoT are at the forefront of this transformation, offering solutions that are both practical and scalable.
According to VeChain, the ultimate goal is to build a “trust-free and distributed business ecosystem” that maximizes value for all stakeholders. This vision aligns closely with Avery Dennison’s commitment to driving innovation and efficiency across global supply chains.
What Lies Ahead
The partnership between VeChain and Avery Dennison marks a significant step toward the digitalization of supply chains. However, the road ahead is not without challenges. As businesses seek to implement these technologies, they must navigate issues such as regulatory compliance, data privacy, and the integration of legacy systems.
Nevertheless, the potential benefits far outweigh the hurdles. With blockchain and IoT, industries can achieve greater transparency, reduce waste, and enhance consumer trust. The collaboration between VeChain and Avery Dennison serves as a blueprint for how technology can address real-world problems, creating a more resilient and sustainable future.
As industries continue to adapt to the demands of a post-pandemic world, collaborations like this will play a crucial role in shaping the future of supply chain management.
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