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Japanese firm Itochu has announced a proof-of-concept (PoC) aimed at developing a blockchain-based traceability system for procurement and supply of raw material for its investment companies and trading parties.
According to the official release, the PoC will target the natural rubber supply chain of Indonesia-based natural rubber processing company Aneka Bumi Pratama, which is fully owned by Itochu. The technology solution for the PoC will be developed by Itochu Techno-Solutions Corporation.
Natural rubber is mainly produced in Indonesia and other Southeast Asian countries. While the demand for natural rubber is going up globally, deforestation and various violations of rights of local residents have become key areas of concern in relation to its production and distribution. With multiple stakeholders involved in the supply chain, greater transparency in the distribution of natural rubber is of utmost importance.
The PoC will involve using a smartphone app that will allow buyers and sellers to conduct mutual authentication and to record transaction details in the blockchain including date, time and location.
“This ensures the transparency of the supply chain of natural rubber up to the processing plant,” Itochu said, adding that it also plans to “provide a system to offer an incentive for accurate recording in order to promote cooperation from the suppliers.”
Founded in 1858, Itochu is a Japanese corporation that engaged in trading and export/import of various products. For fiscal 2018, the company boasted of consolidated net profit in excess of ¥400 billion. In a statement earlier this year, President & COO Yoshihisa Suzuki said:
“In the field of ICT and financial business, I urge our colleagues to step up investment in FinTech, AI, and IoT while pushing ahead with the commercialization of new businesses backed by these technologies.”
