International Business Machines Corporation IBM blockchain-driven solutions continue to find application across new industry ecosystems to streamline supply chain management.
Recently, eProvenance, which is a company engaged in monitoring and analyzing wine shipment conditions, selected IBM’s blockchain technology powered by IBM Cloud platform to run VinAssure platform.
VinAssure platform is built on IBM Blockchain Transparent Supply and utilizes smarter and more secured way to track end-to-end process of wine distribution encompassing its journey from vineyard to end consumer.
Markedly, IBM Blockchain Transparent Supply is devised to use advanced technologies including blockchain, AI and cloud to optimize outcomes.
The comprehensive digital record of transactions and conditions, on a real-time basis, simplifies distribution process considerably. Moreover, it provides the end consumer with greater information, which reflects the immense upkeep that went into producing the wine.
Blockchain Tech to Enhance Wine Supply Chain
The wine industry is complex and heavily interconnected, which necessitates the need to create sustainable mechanism to optimize its supply chains. Besides, numerous and disparate regulations make the industry more complicated.
With enhanced visibility, accountability and rapid data exchange, IBM’s blockchain tech powered VinAssure platform enables winemakers, negociants, importers, transporters, distributors, restaurants and retailers to minimize supply chain errors, misinformation or unfavorable conditions in transit with advanced methods.
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For instance, the QR code on the bottle will offer consumers the details pertaining to the wine's origin and flavor profiles, and whether it meets certification standards for biodynamic, organic, or sustainability practices.
Moreover, eProvenance’s innovative technology, with its proprietary, scientifically based algorithm aids winemakers to assess whether wine is fresh or if quality has been compromised, or if unfitting temperatures have been encountered.
The algorithm results in eProvenance Score (0-100), which indicates if there are any changes in wine quality. eProvenance’s temperature monitoring services and the eProvenance Score, a significant part of VinAssure, provides critical data on the quality of wine shipments from origin to end consumer.
IBM’s Strength in Blockchain Tech Bodes Well
IBM is poised to benefit from growing clout of the company’s blockchain supply chain offerings including, IBM Blockchain Transparent Supply solution.
Notably, De Maison Selections, a U.S.-based importer of responsibly sourced wines, cider and spirits from independent producers in Spain and France, is the first member of VinAssure.
Other wine industry members planning to join VinAssure include “Ste. Michelle Wine Estates, Export Division, the third-largest premium winery in the USA, and Maison Sichel, a Bordeaux-based négociant and winemaker for seven generations.”
Markedly, IBM leverages Hyperledger technology and is an early bird when it comes to providing enterprise blockchain applications. Moreover, the company is involved in numerous pilot projects to explore the use of blockchain tech.
Per ResearchAndMarkets data, the blockchain supply chain market is projected to grow at a CAGR of 81.7% between 2020 and 2025.
Also, robust adoption and broad-based availability of IBM Blockchain World Wire — a blockchain driven global payments network, bodes well. The network is aimed at accelerating and optimizing cross border payments.
We believe that IBM’s initiatives to aid clientele deliver services in real time through the blockchain-technology will enhance long-term growth prospects.
However, significant growth opportunity is attracting tech giants into the blockchain market. Intense competition from Microsoft MSFT, Accenture ACN, SAP SE SAP, and others, in the blockchain services space is a headwind.
Moreover, ballooning debt levels amid restructuring business activities are major concerns. Currently, IBM carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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