Unilever unveils blockchain supply chain tracking solution to increase palm oil transparency

Unilever unveils blockchain supply chain tracking solution to increase palm oil transparency

THE WHAT? Unilever has announced a pilot of the GreenToken by SAP solution to further increase traceability and transparency in Unilever’s global palm oil supply chain.

THE DETAILS According to Unilever, “Raw materials like palm oil are often mixed with physically identical raw materials from verified sustainable and nonverified sources after the “first mile” of the supply chain, causing the origin information to be either hidden or lost.”

The pilot follows the successful use of the concept in Indonesia last year, where Unilever applied GreenToken to source more than 188,000 tons of oil palm fruit.

The solution enabled Golden Agri-Resources and other Unilever suppliers to create tokens that mirror the material flow of the palm oil throughout the supply chain and capture the unique attributes linked to the oil’s origin.

Nitin Jain, Co-founder and General Manager of the GreenToken by SAP solution, SAP, said, “With GreenToken, we want to bring the same traceability and supply chain transparency to bulk raw materials that you get from scanning a bar or QR code on any consumer product. Our solution allows companies to tell what percentage of palm oil products they purchased from a sustainable origin and track it to the end consumer product.”

THE WHY? The GreenToken solution helped Unilever track, verify and report in near real time the origins and journey that palm oil takes through its long and complex supply chain.

Dave Ingram, Chief Procurement Officer, Unilever, said, “Unilever is committed to achieving a deforestation-free supply chain by 2023, and blockchain technology has the potential to help companies, like ours, track their supply chains to ensure the commodities we source respect people and the planet. 

“We are encouraged by the promising results of our pilot with GreenToken by SAP, the latest building block in our tech-enabled approach to ensure a more traceable and transparent supply chain.”