Real-world Examples of Blockchain in the Supply Chain

Supply chain has become complicated – some would even say cumbersome. It takes days to make a payment between a manufacturer and a supplier, or a customer and a vendor. Contractual agreements require the services of lawyers and bankers, each of which adds extra cost and delay. Products and parts are often hard to trace back to suppliers, making defects challenging to eliminate.

Regardless of the commodity involved, whether it is equipment, consumer goods, food products, or digital offerings, supply chains have plenty of headaches. As supply chain consultants, we deal with these issues on a daily basis.

Friction in the supply chain is a big problem. There are too many go-betweens. There is too much back and forth. The rise in uncertainty stops supply chains from working well. Suppliers, providers, and clients must interact via central third-party entities instead of directly with each other. Ostensibly simple transactions turn into lengthy multi-step procedures.

These traditional challenges have been amplified by unprecedented global disruptions (like geopolitical tensions), climate-related events, cybersecurity threats, new regulations, and labour shortages and skill gaps.

And the truth is that the cost of these complexities is staggering:

• Supply chain disruptions now cost organisations an average of $184M annually
• 60% of companies lack visibility beyond their tier-1 suppliers
• Manual processes and documentation errors cost the shipping industry $550B yearly
• Environmental compliance reporting requires an average of 89 person-hours per month
• Counterfeit products cost legitimate businesses over $2.2T globally

In some people’s eyes, blockchain could be the answer to many of these issues. The technology, which first gained prominence through Bitcoin and other cryptocurrencies, has matured significantly. Today’s enterprise blockchain solutions go far beyond an unhackable way of holding and exchanging money.

Modern blockchain platforms can manage any form of exchange, agreement, or tracking process. In supply chain, applications range from self-executing smart contracts to automated cold chain management, from carbon footprint tracking to real-time supplier risk assessment.

Blockchain is no longer just a promising technology — it’s becoming a fundamental infrastructure layer for digital supply chains. Leading organisations are moving beyond pilot projects to full-scale implementations, combining blockchain with AI, IoT, and edge computing to create truly intelligent supply networks that are more resilient, sustainable, and transparent than ever before.

First, What Is Blockchain in the Supply Chain?

What is blockchain? Here’s a simple explanation: a blockchain is a distributed, digital ledger. Think of it like a shared spreadsheet that exists on many computers at once. The ledger records transactions in a series of blocks. It exists in multiple copies spread over multiple computers, typically known as nodes.

The ledger is secure because each new block of transactions links back to previous blocks in a way that makes tampering practically impossible. It’s like each page in our book contains a unique stamp from the previous page – if you try to change anything, the stamps won’t match anymore.

Because it is decentralised, the blockchain ledger does not depend on any single entity (like a bank) for safekeeping. The nodes connected to the blockchain network get updated versions of the ledger every time a new transaction takes place.

The multiple copies of the ledger are the “truth” about every transaction made so far in the blockchain. Any attempt at falsification would mean having to tamper with all the copies at precisely the same moment. The chances of being able to do this in blockchain networks of any useful size are negligible.

Today, companies use two main types of blockchain: Public Blockchain (like Bitcoin), which is open to everyone and completely transparent; and Private Blockchain (like most supply chain systems), which only approved companies can participate in. This is faster and more efficient, and better suited for business use.

Real-World Applications of Blockchain in Supply Chain (Updated for 2026)

Over the past five years, we’ve seen blockchain being used in increasingly creative ways in global supply chains across the world. It’s always exciting to see how emerging technologies like blockchain progress and develop. Many years after first publishing this article, we are seeing the supply chain and logistics domain evolving into one of the most active sectors for blockchain take-up.

For that reason, it seemed a good idea to document a few examples of how our industry is embracing distributed ledger technology and applying it to solve long-standing business problems. The following examples are now in use or can be implemented today using existing blockchain technology.

Product Authentication and Luxury Goods

The rise in counterfeit products has pushed luxury brands to adopt blockchain solutions with their supply chain partners:

• The Aura Consortium uses blockchain to prove the authenticity of handbags for luxury brands like Louis Vuitton and Prada. In 2024, Italian luxury group OTB (the parent of Marni, Maison Margiela, and Jil Sander) became the first Aura Consortium member to deploy blockchain-based digital certificates of authenticity across the entirety of its luxury brand product lines.
• Watch brand Breitling provides digital passports for all of its watches.
• Diamond producer De Beers tracks stones from the mine to retail.
• In May 2025, Fenix Outdoor, the Swedish-German conglomerate behind Fjällräven, Hanwag, and Royal Robbins, committed to full-scale fibre-to-retail blockchain traceability using TextileGenesis’s The Interline Fibercoin™ technology.

How does it work? Each product gets a unique digital identity on the blockchain. Customers can scan a code to see the complete history of their product, from manufacturing to purchase. Supply chain traceability enables luxury brands to easily verify product authenticity using blockchain.

Automotive Supplier Payments

Beyond tracking and authentication, blockchain is also revolutionising how automotive companies handle financial transactions with their global supplier networks.

Blockchain allows the transfer of funds anywhere in the world without the need for traditional banking transactions, as transactions are made directly between payer and payee. It is also secure and rapid, taking minutes compared to days for automated clearing house payments, for example.

Bitcoin transfers specifically also incur lower fees. Australian vehicle manufacturer Tomcar uses Bitcoin to pay some of its suppliers. Currently, three partners in Israel and Taiwan accept payment from Tomcar using Bitcoin.

Tomcar’s supplier agreements use standard terms. The advantage is in the cost savings. On the other hand, Tomcar is careful to avoid holding large Bitcoin reserves. Although Bitcoin facilitates international payments, many governments classify cryptocurrency as a capital asset rather than currency. This means companies may face capital gains taxes when Bitcoin’s value fluctuates between purchase and use.

For example, if Bitcoin increases in value whilst held in a company’s wallet, converting it to traditional currency could trigger a taxable gain — turning what should be a simple supplier payment into a taxable event.

Another good example of blockchain use in the automotive industry is Tesla, which uses blockchain to ensure sustainability across its raw materials.

Blockchain and the Internet of Things

The automotive industry’s blockchain adoption extends beyond payments into more sophisticated applications that combine blockchain with Internet of Things (IoT) technology. One suggestion is for smart contracts to manage rentals of driverless cars.

A smart contract could check for rental payments. If there has been no payment or the rental agreement reaches the end of its term, the smart contract could lock the car and instruct it to drive itself back to the hire company’s premises.

There’s also BMW’s Vehicle Digital Passport, which shows how blockchain and IoT work together in automotive. Each car gets a digital identity that tracks its entire history – from mileage and service records to accident reports and insurance claims.

In their subscription service “Access by BMW,” smart contracts manage the entire rental process. When a customer starts their subscription, the blockchain verifies payment and the car’s IoT systems activate.

If payments stop or the subscription ends, the vehicle automatically restricts access. The system also tracks vehicle condition, location, and usage patterns, ensuring transparent operations between BMW, customers, and service providers.

Meat Traceability (Food Supply Chains)

As companies can use distributed ledger systems (blockchains) to record product status at each stage of production, this works extremely well for food supply chain management and improving food safety overall.

This creates an unbroken chain of custody from farm to table. Walmart’s blockchain system, for example, can trace any package of pork in China back through every processing facility, storage location, and transport vehicle to its original source.

Its system lets the company see where each piece of meat comes from, each processing and storage step in the supply chain, and the products’ sell-by date. In the event of a product recall, the company can also see which batches are affected and who bought them.

Another good example is Starbucks’ Bean-to-Cup programme, which uses blockchain to track the entire supply chain process from sourcing the raw material (bean) all the way through to the customer (cup).

Transparency in the Tea Industry

Lest you perceive that blockchain solutions are exclusively for high-value products such as diamonds and jewels, one industry that produces a far-less-costly, but highly treasured commodity, is also using the technology to improve supply chain transparency.

Not too many of us are prepared to go for more than a few hours without the restorative effects of a cup of tea or coffee. But are we sure we’re drinking the real McCoy and not something with somewhat less beneficial effects being passed off as the most delicate Darjeeling?

It appears that the tea industry, in particular, has a problem with counterfeiting. Unscrupulous merchants pass off inferior tea as that made from much higher-quality leaves originating in the world’s celebrated growing regions — and the more significant and well-known the brand, the more vulnerable it is to counterfeiting.

Unilever owns tea plantations in Africa and is using blockchain to improve sustainability and combat counterfeiting. It’s not that tracking and tracing tea through the supply chain is a new departure for the company. Unilever has been doing that for some time. However, blockchain technology is improving the speed and efficiency of the activity.

The blockchain solution, called Trado, is the result of a partnership between Unilever, Sainsbury’s, and the University of Cambridge’s Institute for Sustainability Leadership (CISL).

Initially convened as an experiment, the participants — including farmers who received a financial incentive to feed data into the system — have deemed it a success, claiming that it has increased visibility in the tea supply chain and brought down the costs of financing sustainability incentives.

In a similar experiment, the Indian government’s Coffee Board of India is using blockchain to monitor coffee supply, and has already received some 30,000 registrations from farmers wishing to participate. The Tea Board of India is now planning to introduce a similar system as an end-to-end traceability solution.

Electric Power Micro-grids

Whilst the tea and coffee industries demonstrate blockchain’s ability to combat counterfeiting in consumer goods, the technology’s versatility extends far beyond traditional supply chains. The energy sector, for instance, is pioneering blockchain applications that transform how we generate, distribute, and consume power.

This example shows how entities of any size can use blockchain. In other words, blockchain is not just for the big players. Smart contracts are being used to redistribute excess power from solar panels.

The Transactive Grid is an application running on blockchain to monitor and redistribute energy in a neighbourhood micro-grid. The programme automates the buying and selling of green energy to save costs and reduce pollution. The process uses the Ethereum blockchain platform, designed specifically for building and executing smart contracts.

An example of blockchain use within energy is Brooklyn Energy, which aims to reduce reliance on traditional power grids whilst cutting energy costs. It does this by using the blockchain to allow residents with solar panels to sell excess energy directly to neighbours.

Smart Contract Automation

In the past, RFID tags were the most commonly used technology in supply chain to store information about products. Companies now use a mix of tracking technologies, like QR codes, NFC tags, IoT sensors, GPS trackers, and Bluetooth beacons.

DHL smart pallets are a good example of this automation that’s been applied across their network. These advanced pallets continuously monitor not just location, but also environmental conditions like temperature, humidity, and physical shocks during transport.

When any of these measurements fall outside acceptable ranges, smart contracts automatically trigger alerts to relevant parties. The system provides real-time visibility to everyone in the supply chain, from warehouse managers to end customers. This technology has significantly reduced product damage and loss, whilst also automating documentation and improving delivery accuracy.

Cold Chain Monitoring

Food and pharmaceutical products often have specialised storage needs. Moreover, enterprises see the value in sharing warehouses and distribution centres instead of each one paying for its own. Sensors on sensitive products can record temperature, humidity, vibration, and other environmental conditions.

When these sensor readings are recorded on the blockchain, any temperature deviation instantly alerts all supply chain partners. This real-time visibility proved crucial during COVID-19 vaccine distribution, where Moderna’s blockchain system ensured vaccines remained within the strict −70°C requirements throughout their journey.

A smart contract can trigger a response to correct the situation. For instance, depending on the size of the deviation, the action may be to adjust the storage. However, it could also extend to changing “use-by” dates, declaring products unfit, or applying penalties.

An example of this in practice was with COVID vaccines, in which Moderna used the blockchain to track the vaccine and demonstrate global supply chain transparency. All in all, there are many different examples of how blockchain has been adopted in recent years across various supply chain operations, being used to improve data integrity and enhance transparency within a company.

These diverse applications — from luxury goods authentication to vaccine tracking — all leverage blockchain’s fundamental characteristics that make it so valuable for supply chain management. Let’s examine the four key benefits that underpin all these use cases.

Four Key Benefits of Blockchain in Supply Chain

The key blockchain features of Bitcoin align with the basic needs for reliability and integrity in a supply chain.

Consensus

All the entities in the chain agree that each transaction is valid. For Bitcoin, that means a transfer of an amount of Bitcoin. For supply chain, it could be:

• A shipment arrived at the warehouse
• A payment was made
• A product passed quality control

Provenance

The entities in the chain know where each asset originated. They also know who owned it before and at what time. For Bitcoin, the asset is money. For supply chain, assets can be anything from iron ore and wheat to cash, machines, and copyrights.

Immutability

Once recorded, transactions cannot be altered or deleted — only new transactions can modify the state. This creates an audit trail that regulators and partners can trust absolutely.

Finality

The copies of the shared ledger all hold the same version of the truth. What works for the Bitcoin network also works for any other blockchain network, supply chain included. Once something is recorded and confirmed, it’s final. Everyone in the network has the same information, like having multiple copies of the same photograph – they’re all identical.

Challenges to Be Met Using Blockchain in Supply Chain

Blockchain, of course, is still an emerging technology and is therefore not without its share of potential issues. Enterprises that want to harness blockchain power for their supply chain will need to watch out and be ready for the following challenges.

Ecosystem Still in Progress

The first telephone was useless until the second one arrived. In time, the phone spread across the world, and now we cannot do without it. The situation is similar for blockchain and companies that want to do business with specific partners. Those partners will need to buy into blockchain as well.

For example, Tomcar can currently execute Bitcoin payment for about 2% of the parts it buys. However, niche uses of blockchain are on the rise. It may be just a matter of time until businesses “join the dots” for widespread acceptance.

Currency Volatility

Bitcoin is an easy way to start using blockchain. The problem is that the rate of exchange between Bitcoin and other currencies can change rapidly. Payment terms must be short enough or flexible enough to be able to cash in Bitcoin and recover the value expected.

Bitcoin and other cryptocurrencies (Ether, for example, for the Ethereum platform) are also volatile in another sense. If you lose the digital key (passcode) to your cryptocurrency reserve, there is no way to recover it.

Technology and Know-how

Blockchain programming takes a mix of software skills. It also helps to understand economies and businesses, especially your own business.

You may have to train staff or hire new people with these skills. You could also outsource your blockchain development to a third party. The best choice for you will depend on your current situation and future aspirations.

Mindset

Blockchain arose when people began searching for a way to decentralise applications and operations. They wanted to make dependencies on centralised entities like banks optional instead of obligatory. It is a new way of thinking, so don’t be surprised if it takes you or your colleagues a little time to shed your mental shackles and get into the swing of the blockchain movement.

Conclusion

Blockchain can transform supply chains, industries, and ecosystems. Interestingly, even organisations like banks, that would appear to be losing out to the new technology, can see opportunities to exploit it in the streamlining of their operations.

In-depth transformation of supply chains will not happen overnight. However, supply chains can already start using blockchain in some areas of their operations. Smart contracts can help eliminate costly delays and waste generated by manual handling of paperwork. From there, new doors may open to faster, more intelligent, and more secure processes throughout the entire supply chain.