IBM and Walmart
IBM’s (IBM) Food Trust Solution may benefit from Walmart’s (WMT) latest move. The retail giant has set a deadline for all vegetable suppliers to Sam’s and Walmart to input all their data in the blockchain by September 2019. Walmart partnered with IBM in 2017 to use its blockchain technology in its retail stores. Walmart is working to accelerate the use of this technology in all its stores.
This broader implementation of its blockchain platform may help IBM expand its Blockchain segment while supporting its Cognitive Solutions business. According to WinterGreen Research, the blockchain market was valued at ~$700.0 million in 2017. IBM held an ~32.0% share of this market in 2017. The chart below shows the revenue trend of IBM’s Cognitive Solutions segment in the last five quarters.
The importance of IBM’s Food Trust Solution
IBM’s Food Trust Solution, which is built on its blockchain platform, allows enterprises to manage and execute blockchain networks in their organizations. Nestlé, Dole Food, Tyson Foods (TSN), Kroger (KR), and Unilever (UN) have partnered with IBM to deploy its Hyperledger technology to track food items efficiently.
The open-source Hyperledger platform, which is integrated with the client’s supply chain system, is designed drive inventory management for enterprises. The platform is also designed to reduce waste by reducing manual intervention.
This platform provides more visibility to track food items from their original points of origin. It previously took about seven days to trace the source of food. With the implementation of this blockchain platform, this activity can be performed in just 2.2 seconds. As a result, the demand for blockchain may continue to grow.