US-based footwear manufacturer, New Balance, has announced the partnership with Cardano blockchain. The news was released on Sept. 28th, during the Cardano summit in Sofia, Bulgaria. Cardano blockchain and New Balance Sneakers are teaming up to revolutionize the supply chain.
The Goal of the Co-Operation
As per the statement by IOHK CEO Charles Hoskinson, the goal of this co-operation is to provide proof of authenticity for all New Balance items. Furthermore, both parties have agreed that the potential of this project is large and that the ultimate aim would be to make this type of co-operation a massive habit.
In further clarification, IOHK’s Tim Harrison reportedly stated:
“IOHK is collaborating with New Balance on an authentication pilot project. This is a consumer-level verification solution which will allow purchasers to confirm the authenticity of footwear on the distributed ledger.”
So far, no details about the very process of authentication have been released. Nevertheless, the blockchain enthusiasts have commented on the news. They speculated that the process would most probably include tagging each item with a cryptographic identifier. Such identifiers are unique, and each buyer would be able to verify them.
In cases like this one, where the manufacturer introduces blockchain to its supply chain, blockchain records each and every detail. Those details include steps in the production, as well as the origins of each component of a product stored on immutable ledger. This also entails noting the date of the production, location, the individual who handled each step of the process, and all other important information.
New Balance in Numbers
New Balance is a company based in Boston Massachusetts. It is one of the reputable brands when it comes to sports footwear. Reportedly, in the last five years the yearly revenue of this company has increased from $2.7 billion in 2013 to $4.1 billion.
The challenges that New Balance is facing include rising number of counterfeit goods. The manufacturers of these products have basically stolen the design and are producing footwear of lower quality under the brand resembling New Balance. Apparently, majority of the copy cats originate from China. Reportedly, New Balance has won a case in front of the Chinese court and received $1.5 billion for damages caused to new Balance by the company that sold the counterfeit goods under the name “New Boom”.
Blockchain in Supply Chain
Blockchain has truly revolutionized the supply chain. The amazing thing is that this is just one of its possible applications. As blockchain technology has entered many industries, the ways it is used across various fields is astonishing.
When applied to supply chain, its main advantage is in fighting counterfeit goods and tracking the items and its components through various destinations and through the entire process of production and sales. Tracking the royalties is also a very important benefit. It helps to keep the records clean and accurate.
Today, blockchain is present in many industries, ranging from fashion to drug production and supply. As a quick reminder, one of the largest online giants nowadays, Alibaba, has joined the blockchain revolution. Reportedly, this company had filed for more than 90 blockchain patents so far. Walmart and Target have also introduced blockchain to their business processes, as well as Louis Vuitton, for example.
US Food and Drug Administration (FDA) has recognized the benefits of blockchain and many pharmaceutical companies have switched to blockchain in order ensure easier tracking of the ingredients of drugs, inventory, better accuracy of data. This also enabled them to fight the black market. Just to make it clear how blockchain is important, allow us to remind you that the pharmaceutical industry worth has been estimated at $200 billion worldwide.
Do you ever doubt the quality of goods you buy?