Japan’s trading company, Itochu, one of Japan’s largest firms, has officially announced the start of a proof-of-concept (PoC) aimed to develop a blockchain traceability system, which will allow buyers and sellers to record the date, time, location and other transaction details on a blockchain through a smartphone app.
Japan’s Itochu Will Provide ‘Stable Procurement And Supply Of Raw Material’
The intent is to develop a blockchain system that ensures “stable procurement and supply of raw material” for their investment companies and trading parties, improving the traceability of distribution. According to a press release, the PoC will ensure the transparency of the supply chain of natural rubber up to the processing plant. In addition, they plan on providing a system to offer an incentive for accurate recording in order to promote co-operations from the suppliers.
The PoC will use Pt. Aneka Bumi Pratama, an Indonesian-based company that processes and exports crumb rubber. The company is a subsidiary of Itochu.
The press release highlights that the start of the new PoC is contributing “to the achievement of the 17 Sustainable Development Goals listed in The 2030 Agenda for Sustainable Development adopted by the United Nations.” In addition, Itochu has participated in the Global Platform for Sustainable Natural Rubber (GPSNR) as the only Japanese sogo shosha that has contributed to its establishment as a founding member. This organization was founded by natural rubber stakeholders, such as car manufacturers, tyre manufacturers and natural rubber processing companies, with the aim to establish traceability and achieve higher sustainability through supply chain collaboration.Itochu has headquarters in Tokyo and Osaka and was ranked 215th on 2017s list of Fortune Global 500 companies, with an annual trading revenue of close to $45 billion.