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CPG Manufacturing & Retail

Why Blockchain for CPG Manufacturing & Retail?

Since the dawn of the digital supply chain, manufacturers and the retailers who rely on them have been seeking a single source of truth for tracking their materials and products. Now, blockchain is here to unlock the following opportunities:

  • Increase transparency to prove authenticity/origin, dissuade counterfeiters and improve traceability
  • Improve data accuracy, security and consistency with blockchain’s distributed ledger system
  • Enable data immutability to increase trust for all parties involved
  • Streamline payments through smart contracts that only execute once terms are met

How Blockchain Works in CPG Manufacturing & Retail

The blockchain can connect any number of entities on a single, shared, immutable ledger, replacing disparate systems and improving security, traceability and efficiency.

Use Case 1: Counterfeit Prevention


Anti-counterfeiting measures like watermarks and holograms are expensive and generally ineffective. Fake products are sometimes hazardous to consumers, who can get sick as a result of insufficient quality control.

With Blockchain

Products are tracked and traced with unique identifiers (QR codes) to enable a highly transparent blockchain-based supply chain. Merchants and consumers can scan the code to make sure their products are authentic and view all sorts of data.

Use Case 2: Coupon Fraud Prevention


Fraudulent use of coupons as well as coupon counterfeit cost companies billions each year. Retailers must rely on third-party clearing agents to verify coupons and take big losses because of fakes.

With Blockchain

Unique identifiers (QR codes) on each coupon have corresponding data stored on a secure, tamperproof distributed ledger, enabling instant verification for retailers upon consumer use and eliminating the need for third-party clearing agents.

Use Case 3: Traceability


Supply chains are incredibly long and involve multiple parties, who each use fragmented tracking systems that lack transparency. The result is an inefficient supply chain incapable of operating in real time.

With Blockchain

A blockchain-based supply chain solution enables real-time visibility into where products and materials are at all times. Parties can share information without fear of it being lost or stolen.

Use Case 4: Direct Digital Marketing


Brands spend money on digital marketing without a clear picture of where budgets would make the biggest impact. Consumers value data privacy and transparency, and many are cautious of retailers mishandling their personal information.

With Blockchain

Instead of worrying about countless marketing channels, brands communicate directly with consumers on a blockchain-based platform. Brands incentivize engagement to collect data and increase exposure, and personal data is stored securely and permissioned according to user preferences.

Use Case 5: Gift Card Fraud


Fraudsters are able to hack gift card data by exploiting information vulnerabilities in the supply chain, hacking customer accounts and replicating physical cards – all of which can be extremely difficult to investigate and end up costing the retailer who issued the card.

With Blockchain

Blockchain helps to minimize gift card fraud through the integration of tamperproof encrypted data storage. By scanning each card’s unique identifier, consumers can see whether a card has been forged or copied before leaving the retail store and easily claim/manage ownership of the card upon purchase.

Have a Use Case Not Mentioned Above?

If the blockchain use case you had in mind isn’t listed here, please let us know and we’ll explore its potential for your enterprise with you!


Learn More about the Benefits of Blockchain in CPG Manufacturing & Retail

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