​Alibaba Pilots Blockchain Supply Chain Initiative

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According to reports Alibaba Australia has revealed that it will launch a pilot that will ensure that orders made via the company’s Food Trust Framework, a move designed with the Blockchain Supply Chain Initiative. This endeavor comes as the company attempts to improve its supply chain traceability. Companies like Blackmores (health supplements) and Fonterra (a dairy products supplier) will lead the way regarding the Food Trust Framework, by shipping products from New Zealand and Australia to China through Alibaba’s Tmall Global platform.

Blockchain Supply Chain

Alibaba believes that if the pilot in Auckland turns out victorious, the Blockchain Supply Chain initiative could form the means for a worldwide supply chain model applied in all the company’s e-commerce markets. The trial follows Alibaba in March last year merging with Australia’s Post and PwC to see how blockchain technology can be used to fight food fraud. The company, last year, agreed to a memorandum of understanding with Australia Post, Blackmores and New Zealand Post to launch the framework.

According to Alibaba, the framework will be designed to achieve end-to-end supply transparency and traceability, hence boosting consumer confidence and creating a “trusted” environment for trades across Alibaba’s Tmall Global enterprise. Alibaba reports that the issue of food fraud costs the worldwide food industry $40 billion per year. PwC has estimated that 40% of food companies discover that food fraud is difficult to detect with the current methods, while 39% think their products will be easy to counterfeit.

Alibaba also reports that the framework is its next step to build the infrastructure of commerce in the future. According to Alvin Liu, Alibaba’s Group GM of Trade Import and Export food fraud is a huge global problem considering the expanding complexity of food supply chains. He says that in response to this situation, Alibaba has set up a coordinated robust Blockchain framework that will involve all stakeholders from the supply chain in a bid to enhance confidence and improve the visibility of merchants and consumers.


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