Smell the Perfume: Can Blockchain Guarantee the Provenance of Key Product Ingredients in the Fragrance Industry?

Abstract

Although many studies have proclaimed the potential benefits of blockchain technology for supply chain traceability, there are very few examples of successfully scaled blockchain traceability solutions. Here, we examine the challenges in adopting blockchain-based traceability solutions using the case of a complex globally fragmented industry—the fragrance sector. Fragrances are used in a vast number of products. Leading brands make substantial claims about the origin, production methods, certifications and environmental and social sustainability of the fragrances in their products. We categorize the types of traceability-related claims made and examine the potential use of blockchain to support them. The industry exemplifies the challenges in ensuring supply chain traceability in globally dispersed supply chains. The research highlights the potential of blockchain-based traceability solutions but identifies four major challenges—bringing together supply chain partners for a blockchain initiative, disclosing and sharing more information than is common in buyer-supplier relationships, ensuring information encoded on a blockchain provides an accurate record of a product’s journey through the supply chain and involving parties such as regulatory and industry bodies in blockchain initiatives. The challenges identified are reflected in supply chains that are fragmented and globally dispersed, showing why the uptake of blockchain-based traceability has been limited in such sectors.