Using the Transparency of Supply Chain Powered by Blockchain to Improve Sustainability Relationships with Stakeholders in the Food Sector: The Case Study of Lavazza

Abstract

Food product safety and quality are considered to be of the utmost significance on a global scale. Highly publicized food safety incidents have significantly increased public interest in food traceability, defined as “the ability to track any food, feed, food-producing animal or substance that will be used for consumption, through all stages of production, processing, and distribution” (European Union). The World Health Organization (WHO) suggests that governments, producers, and consumers work together to ensure food safety, which calls for the dissemination of pertinent information throughout complex food value networks. Therefore, it is in the best interest of profit-driven businesses to implement information systems for tracking food goods, a significant byproduct of which is the likelihood of increased profitability. This paper aims to explore the ample possibilities for such implementations that are now available thanks to blockchain technology. In particular, the goal is to explore the dynamics of this technology and identify how it helps to create good customer relationships. For this purpose, the case of Lavazza, an important Italian roasted coffee company that has recently introduced a blockchain-tracked product to the market, is analyzed in detail, including all the steps that made the application of the technology possible and how it was finally communicated to the consumer. The case study offers a concrete example that resulted from both stakeholders’ internal need for greater traceability and consumers’ external need for greater transparency regarding the company’s sourcing processes. In this pilot project, collaboration among all the entities that are part of the chain was essential to delivering a formative, customized, and ultimately, easy-to-understand experience to the end consumer. Finally, Lavazza is an example of a company that decided to challenge itself by following a trend that will be increasingly present in future socioeconomic scenarios.

Sustainability through digital transformation: EU practices

“…The eC focus enabling the DE has remarkable benefits, particularly the financial sustainability focus, however, there are some major concerns arising from the increasing logistics frequency and solid waste amounts [75]. eC and DE are affected by several factors in the EU, such as "Digital Single Market" strategy and "eC Directive" [76], protection of data/consumer/intellectual property [63], financial services/payment systems/fintech [3], cutting-edge technologies/5G/broadband access [77], global trade regulations/agreements/taxation [49], trust and preferences of customers [21], competitiveness [51], language problems for addresses [78], last-mile delivery/logistics [79], and digital literacy with training/education support.…”

“…In a broader context, supply chain optimization can be attained by greener manufacturing implementations, and by higher supplier collaborations via real-time visibility [19,20]. As a result of doing so, traceability and transparency improve consumer engagement [21], Waste management can also be achieved in terms of both solid waste mitigation [22] and emission and energy use reduction [23].…”

Exploring Blockchain Research in Supply Chain Management: A Latent Dirichlet Allocation-Driven Systematic Review

“…Blockchain offers a robust solution to these challenges of traceability and information security. Lastly, the case of Lavazza, a renowned Italian coffee company, offers tangible insights into the real-world application of blockchain [104]. By integrating this technology, Lavazza catered to both internal stakeholders' need for enhanced traceability and consumers' demand for transparency.…”

Collaborative Green Innovation of Livestock Product Three-Level Supply Chain Traceability System: A Value Co-Creation Perspective

“…Concurrently, while traceability technology is environmentally friendly, its implementation proves challenging. For instance, livestock product supply chain traceability is constrained by internal costs due to technology introduction, personnel training, process improvement, etc., as well as external environmental influences such as adoption by enterprises in the chain, policy environment, and consumer acceptance [18]. Nevertheless, employing supply chain traceability can foster sustainable relationships with other stakeholders and enhance collaborative interaction among relevant subjects in the chain.…”