Enhancing the competitive advantage via Blockchain: an olive oil case study

In the Olive Oil Supply Chain (OOSC), olive oil is priced according to its origin and quality, yet it periodically suffers from scandals concerning quality or fraud issues. Blockchain Technology (BT) has been put forward as a solution that should bring visibility to the food supply chain. BT is proposed to guarantee the veracity of the product’s information at the different stages of its production. Despite BT’s extraordinary interest in operations and supply chain management, no research supports how its use will generate visibility and avoid fraud in the olive oil quality. We present here how BT combined with Internet of Things (IoT) devices and smart contracts will improve visibility and avoid fraud in the olive oil quality so providing a competitive advantage. A theoretical use case based on real costs of the financial gain from using BT in a typical OOSC is presented. We propose that all food supply chains where quality, origin, and production process have to be verified should deploy BT to maximize visibility and competitive advantage for the operators in the chain.