Certifications and Supply Chain traceability enabled by Blockchain for Peterson Control Union

1. Introduction

In an era defined by global integration and interconnected markets, supply chains play a pivotal role in shaping the world economy. The intricate journey from extracting raw materials to delivering the final product to consumers involves a complex network of entities. Industries such as Cotton, Wood, Oil, Rubber, and Jute embody this complexity as they navigate through a web of suppliers, manufacturers, and distributors. While this interconnectedness enhances operational efficiency, it also introduces challenges, emphasising the critical importance of transparency and traceability in promoting sustainability and responsible business practices.

2. Industry Landscape

The agri-supply chain, with a focus on various agricultural processes, stands at the forefront of our case study. This sector is crucial for global trade and commerce, providing raw materials for a myriad of products. Agricultural products, as major contributors, require an elevated level of examination and responsibility owing to their extensive range of uses. The complexities within this landscape necessitate innovative solutions to streamline processes and ensure the authenticity of the supply chain.

Peterson Control Union, present in 80+ countries and since over 100 years as well as one of the world’s leading certification bodies for commodities, had the vision of leading state of the art innovation through blockchain backed traceability on certificates.

3. Supply Chain Dynamics

The agri-supply chain certification program involves a diverse range of stakeholders, each playing a pivotal role in the production and certification process. To streamline these operations, the certifying bodies can utilize a blockchain-enabled platform, providing transparency and efficiency across the supply chain. Throughout the certification process, various administrative actions contribute to the seamless operation of the agri-supply chain. These actions encompass the validation and approval of organizations seeking certification, ensuring that only eligible entities enter the process. Subsequently, administrators take charge of scheduling and planning audits, orchestrating activities to align stakeholders for a smooth certification process. Administrative staffs conduct thorough examinations of supply chain units, documenting results comprehensively to highlight areas requiring attention. Another pivotal administrative role holds the final authority in the certification process, reviewing inputs from applicants and granting approval to deserving companies. Once approved, certified companies gain access to a custom dashboard and receive the necessary documentation. The certification process extends to specific products under the registered program, overseen by administrators who manage the receipt or claiming of inventory. This step involves defining products with detailed information, including unit specifics, composition, source details, transport, and invoice documents. This comprehensive approach ensures traceability for each certified product back to its origin. The final administrative role involves meticulous examination of product certification claims, verifying the accuracy of details provided by companies. Once validated, certified products receive a unique Transaction Certificate. Enhanced with a QR code, this certification serves as a digital passport, allowing stakeholders and consumers instant access to detailed product information. This sequence of administrative actions, guided by transparency and traceability, reinforces a robust and accountable supply chain within various agricultural industries.

By delineating roles and responsibilities across the supply chain, the blockchain-enabled platform has brought unprecedented transparency and efficiency to the certification process. The seamless integration of auditing, certification, and product-level traceability ensures a robust and accountable supply chain, reinforcing the commitment to sustainable and responsible business practices in various agricultural industries.

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Sample trace: Upon scanning the QR code on a transaction certificate, the entire trace of the goods represented in the certificate is available, with information related to farmers, geography of various preceding processes, etc .

4. The Blockchain Harvest: Sowing Seeds of Security and Transparency

To address the complexities within agri-supply chains, the certifying bodies can leverage the power of blockchain technology. The introduction of blockchain-backed certification and traceability revolutionizes the traditional certification processes. It creates a secure and transparent platform, organizations within the supply chain can register their units and products under the certification programs.

A digital fingerprint of the rewarded Certificate is created and stored on a public blockchain, ensuring the immutability and transparency of the data displayed on the certificate. Its integrity can be verified at any moment by end-users.

Through this innovative blockchain solution, the certifying bodies can successfully cultivate a more secure, transparent, and streamlined certification process for agri-supply chains. The adoption of blockchain technology sows the seeds of accountability, traceability, and sustainability, fostering responsible business practices in various agricultural industries.

5. Beyond Certifications

Beyond specific sectors like agri-supply chains, the application of this blockchain enabled system, extends to a wide array of certifying bodies, offering a standardized and secure method for authenticating achievements and credentials. This versatile solution ensures transparency and tamper resistance, benefiting individuals, organizations, and stakeholders involved in diverse certification processes. The decentralized nature of blockchain enhances the reliability of certification practices, fostering accountability and traceability across different domains. The adoption of blockchain technology in certification processes exemplifies a forward-thinking approach, sowing the seeds of accountability, traceability, and sustainability across various industries.

Moreover, In June 2023, the European Union introduced Regulation (EU) 2023/1115 by the European Parliament and the Council, addressing the availability of specific commodities and products related to deforestation and forest degradation. As per the EU Deforestation Regulation (EUDR), individuals or entities involved in placing commodities such as soy, beef, palm oil, wood, cocoa, coffee, and rubber on the EU market or exporting them are required to demonstrate that these products are not sourced from recently deforested areas or have contributed to forest degradation.

The blockchain-enabled certification system presented here aligns seamlessly with the stringent requirements of the EU Deforestation Regulation (EUDR). By leveraging blockchain technology, certifying bodies can ensure a transparent, tamper-resistant, and accountable process for verifying the origins and sustainability of commodities. Each step in the certification process, from validation to final approval, is securely recorded on the blockchain, providing an immutable and auditable trail of compliance. This not only meets the demands of EUDR but also establishes a robust framework for certifying bodies to navigate complex compliance landscapes across various industries. The adoption of blockchain technology, in this context, not only supports the broader goals of sustainability and responsible business practices but also positions certifying bodies as pioneers in meeting and exceeding regulatory standards.