Note: This guide is written by a guest contributer, and originally published on Medium. It was republished with the permission of the author, Wilson Cheah.

Introduction

For decades, all types of businesses from small businesses to massive private and state owned enterprises have been plagued with various supply chain issues, such as poor traceability, as well as the need for more transparent business practices. Ineffective supply chain risk management as well as a lack of end-to-end visibility are both cited by a 2018 Deloitte study entitled ‘Continuous interconnected supply chain’. Authenticity and anti-counterfeiting is also a concern in many industries, with widespread counterfeiting happening throughout the market.

Today’s consumers are more educated about their purchases and demand greater transparency, sustainability, ethical and business practices. The reality is that even with modern traceability technologies laid out and deployed, businesses still fail to properly track and trace their supply chain. Communicating these efforts to customers also proves to be a challenge.

This article will highlight solutions to these problems, which can help to revolutionize your business, supply chain, and product marketing strategy. 

Blockchain+IoT as a solution

Deloitte 2018, Continuous interconnected supply chain

Blockchain has been often cited as the perfect solution to many of these complex supply chain problems. Blockchain’s immutable and transparent distributed ledger coupled with modern IoT sensors could ensure that all supply chain information is tracked in real-time. Practical case studies (which will be highlighted later on in this article) have shown that this data could be then displayed in a transparent manner through QR codes or NFC tags that can be scanned by retail customers.

The problem? Hiring blockchain consultants and developers while ordering physical IoT kits and sensors can cost a lot of money. This is money that most start-ups or SMEs can’t afford. The various enterprise blockchains out there, such as IBM’s Hyperledger, are either too costly or hard to approach, making them only accessible to larger enterprises.

ToolChain: A cost effective, zero-knowledge required blockchain solution for products and supply chains

ToolChain is a revolutionary, turnkey solution powered by the world’s leading enterprise-grade public blockchain, VeChain. ToolChain allows any business or individual to utilize the blockchain and IoT solutions used by VeChain without any technical knowledge.

The ToolChain toolkit, with a complete package of industry-leading IoT sensors, devices, hardware portal and software access to the VeChainThor Blockchain

ToolChain provides a complete suite of industry-leading IoT sensors and devices, including NFC tags, RFID tags, a QR code printer, as well as humidity, acceleration, and temperature sensors. ToolChain users will be able to attach these sensors and write information such as supply chain and logistical data onto the VeChainThor Blockchain. This can be done using the supplied software and web portal assigned to each unique individual or business.

To learn more about the unveiling of ToolChain and its full feature set, please read the following summary article at https://medium.com/@bsc44/vechain-summit-2019-keynote-summary-4cebc5a98f29#6983

Example use cases and practical case studies

Scenario A: Artisan handicraft maker

If you are an artisan handicraft maker looking for a way to ensure that your products are unique and authentic, you are now able to attach or embed an NFC tag to your product or product label and upload the relevant product information into the Blockchain.

At the same time, product traceability data, logistical flow data, certificates, manufacturing processes, as well as photos and videos can also be uploaded.

When your product gets shipped, all the customer needs to do is use the VeChain Pro app and scan the NFC tag to reveal every detail and story that you always wanted to tell.

Arket (an H&M subsidiary) utilizing VeChain’s ToolChain powered kit to provide traceability and authenticity information for its customers. Photo credit: VeChain Foundation

Scenario B: Supermarket Sushi

Current example marketing efforts to communicate with consumers, credit: Design Ginseisha.jp

Imagine that you are a Sushi distributor thinking of ways to communicate that the salmon or tuna you use is of a certain origin (such as Japan or Norway). 

Your current strategy might be:
1) Print physical posters, banners, and leaflets with fancy designs explaining your ingredients, certificates and processes
2) Hire part-time promoters and rent stall space 
3) Hand out these physical marketing pieces to customers, hoping that they will not throw it away as soon as they leave the supermarket.

The weaknesses of the current strategy is simply a waste of costs, including cash paid to the print shop, wages paid to the designer and promoter, as well as for physical resources like paper and ink. Such strategies are not only costly, but also ineffective compared to the new age digital marketing with ToolChain.

Sushi with a smart QR code linked to the VeChainThor Blockchain, printed using the ToolChain. Image credit: towelkeeper

With ToolChain, a smart QR code can be directly printed on the packaging, which shows the entire supply chain and packing process, including:

• cold chain logistics data
• humidity data
• temperature levels maintained throughout the journey of the product to stores

Also, not only the stories and pictures that are used on physical leaflets are shown, but also videos can be used  —  further enhancing your branding and marketing while simultaneously keeping costs down.

Current enterprise and industry case studies

Case 1: SBTG + ToolChain + HBO Asia + Game of Thrones

Mr. Sabotage (SBTG), showcasing his usage of ToolChain for his custom sneakers during the VeChain Summit 2019

SBTG is an influential Singapore-based custom sneaker artist, selling customized shoes while collaborating with multiple sneaker brands including Adidas, Nike, and more.

Brands that are selling luxury or limited goods often suffer from counterfeits, which SBTG often encounters. Artists like SBTG also struggle with communicating their vision and goals with customers, and the storytelling of such products often ends after the sale of the goods.

SBTG’s official Game of Thrones sneakers powered by ToolChain, commissioned by HBO Asia. Photo credit: SBTG Instagram

With ToolChain, SBTG has successfully integrated advanced IoT and blockchain solutions into his products, resolving his authenticity and marketing issues. The official Game of Thrones sneakers commissioned by HBO Asia are completely powered by the ToolChain kit.

SBTG limted edition sneakers are embedded with ToolChain-VeChain NFC chips that can be scanned by customers

Case 2: Fuji Marumo Tea

Note: Parts of this case study are extracted from the VeChain Foundation Medium

Fuji MARUMO Tea Garden is a Japanese tea company with a rich heritage of history, boasting a business lineage of almost 100 years. Fuji MARUMO’s tea are harvested in one of the most famous origins of Japanese tea, located in Shizuoka, Japan. Shizuoka has been recorded as a staple of tea harvesting as early as the year 1241.

VeChain NFC tags (printed using ToolChain) are embedded in the product packaging. Photo credit: VeChain Foundation

For this solution, VeChain assigns every product a unique ID ensuring the exclusiveness of the line. Through the NFC chip, customers can verify that the origin of their tea is from Fuji MARUMO Tea Garden, the unique environment for cultivating tea in Japan. Furthermore, when scanning the chips, the consumer can retrieve further information about the product, such as the history of the tea garden in a video and a verification certificate issued and stored on the VeChainThor Blockchain.

Case 3: Haier IoC-COSMOplat platform

On April 1st, 2019, Haier, DNV GL and VeChain signed a tripartite strategic partnership to utilize the VeChainThor Blockchain for its COSMOplat platform. COSMOPlat is the ecological backbone of Haier, operating as an open industrial internet platform with independent intellectual property rights. This makes it the first ever platform in-which third parties can participate in the entire industrial process.

Haier has committed to using the VeChainThor Blockchain for its COSMOplat platform, tracking Haier products in the ecosystem. Photo credit: VeChain Foundation

For the purpose of this case study, a simplified overview of Haier’s efforts involve placing Haier products on the Blockchain, tracing its entire product lifecycle history as well as product information.

A user scanning Haier’s ecosystem product to obtain the product’s lifecycle and general information. Photo credit: VeChain Foundation

Case 4 : Swell-INNERSECT fashion initiative by Edison Chen

Another example of ToolChain’s flexible and powerful features was showcased during Swell’s INNERSECT event in 2018.

Swell is a fashion brand intiative partnered with INNERSECT, a fashion event hosted by famous celebrity Edison Chen. The event showcased the latest in fashion trends, and Swell X INNERSECT opted to showcase their usage of the ToolChain toolkit.

Using the dedicated Swell app from the Google Play Store and iOS App Store, users can directly scan the NFC chip embedded in various fashion products such as hoodies, beanies, Nike shoes, and more. Users can then register their products on their Swell profile and tie the authentic fashion goods on the blockchain to their own user profile.

ToolChain is powerful for brands as it is white-label friendly. 

White labelling refers to the process of rebranding a turnkey solution with a businesses’ own branding, design, and logo. Swell rebranded the entire ToolChain kit with their own brand language and released their own ToolChain-powered App.

ToolChain Admin Center

The ToolChain Admin Center allows you to register your products, add descriptions, pictures, videos and other data that you wish for your customers to see. The portal allows you to have as many instances on the blockchain as you like. To prove the origin of your products, your manufacturers, distributors, suppliers, and teams can use the VeChain Work App to contribute to the story of your product. When the customer sees the final product, they can use the VeChain Pro app (or similar QR/NFC reader) to view the entire story of your product, including proof of authenticity and origin, all in a consumer friendly interface.

Conclusion

Through the various use case examples and real case studies above, it is evident that issues with supply chain traceability, authenticity, and marketing can be resolved by VeChain’s ToolChain.

The call for more transparency by customers has been both a boon and bane for companies worldwide. With VeChain’s solutions, there is finally a user-friendly, transparent, secure and immutable way of transforming a company’s supply chain and marketing strategy. Already, enterprises like BMW, Deloitte, PwC, H&M, Givenchy, Haier, and many others are signed up and using these solutions.

ToolChain is an unprecedented toolkit that brings the commercial VeChain IoT and Blockchain solutions used by famous companies and global enterprises to everyone, without any technical knowledge or consultants.

VeChain GM for Europe, Jerome Grilleres showcasing ToolChain, a complete turn-key solution for businesses and individuals. Photo credit: VeChain Foundation

For general, commercial, and business enquiries regarding the ToolChain toolkit, please email [email protected]. Visit the VeChainWorld website and VeChainWorld forum to learn more about VeChain and ToolChain.

Credits and Acknowledgements

Article written by Wilson Cheah
Telegram: fatalexe
Twitter: twitter.com/FatalFatalexe
If you enjoyed reading this article, please consider sharing this to your circles.
William’s VeChain tip account (VIP180 tokens): 0x2C50c7AbA38b0C7ca4B5965f2ec9457Bcd319E18

William is a guest contributor to VeChain101.com.

References used:

https://medium.com/@bsc44/vechain-summit-2019-keynote-summary-4cebc5a98f29
https://medium.com/@vechainofficial/featuring-sbtg-vechain-meets-streetwear-6c7685c92487
https://medium.com/@bsc44/vechain-introduces-toolchain-567835dc042d
https://kwontik.com/review_vechain
https://medium.com/@vechainofficial/vechain-dnv-gl-and-haier-ioc-enter-into-tripartite-strategic-partnership-ed1abc7e98b4
https://medium.com/@vechainofficial/vechain-enables-customers-to-verify-the-proof-of-origin-in-japanese-tea-products-80b95f34ab5a
https://www2.deloitte.com/us/en/pages/operations/articles/blockchain-supply-chain-innovation.html

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