DNV GL and VeChain have agreed on a partnership to use blockchain to improve the transparency of product and supplier information, significantly increasing the efficiency of supply chains. DNV GL is a global provider of assurance services and one of the world’s leading certification bodies, assisting companies in a range of industries to improve their business performance. Going forward, DNV GL will progressively adopt blockchain to help companies boost the transparency and traceability of their products from the factory to the consumer. As one of the early movers in utilizing the technology outside fintech, VeChain is a pioneer in the blockchain industry and controls the leading public blockchain platform for products and information.
Companies often rely on independent third parties, such as DNV GL, to manage complexity and risk in their supply chain and ensure compliance with industry standards and stakeholder requirements, spanning from product quality to corporate responsibility. For example, DNV GL might work with a food producer to ensure it has processes in place to properly manage food safety in all steps of the supply chain, or help a car manufacturer ensure the functional safety of its vehicle.
Now, by combining DNV GL’s know-how with key blockchain features and utilizing Internet of Things devices like sensors embedded in a product, it is possible to obtain a unique insight into a product’s history, status and performance. For example, how it has been produced, transported, stored and its current quality. This transparency and insight along the entire supply chain will give companies increased control and improve overall efficiency.
Luca Crisciotti, CEO of DNV GL - Business Assurance (left) and Sunny Lu, CEO of VeChain.
Consumers, on their part, can verify that the product they are considering purchasing is safe and genuine. As an example, the consumer can directly check that a product was ethically sourced from a manufacturer, that frozen food was safely transported at the right temperature or that a luxury product is an original, and can even track a wine back to the grape.
“Data is becoming an increasingly valuable asset and this partnership with VeChain will enable our digital solutions to address changing needs in the data-driven economy,” said Luca Crisciotti, CEO of DNV GL – Business Assurance. “By leveraging the Internet of Things and blockchain technology, we are reinventing the assurance process. Our Digital Assurance Concept will provide both companies and consumers with an unprecedented degree of insight into product and supplier information, to an extent and with an accuracy which have not been possible before.”
The new solution will initially target the food & beverage, retail and fashion industries and progressively expand to cover other industries, starting with automotive and aerospace.
Sunny Lu, CEO of VeChain, said, “Blockchain has many applications beyond the financial sector and I'm glad that DNV GL has recognized the revolutionary impact it can bring to supply chain management. Together, we combine assurance and blockchain to help customers improve trust in their products across multiple dimensions; from quality and safety to performance aspects.”