How supply chain transparency can help the planet
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0:01 - 0:03In almost all aspects of our lives
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0:03 - 0:07we have perfect information
available instantaneously. -
0:08 - 0:11My phone can tell me
everything about my finances, -
0:11 - 0:14where precisely I am on a map
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0:14 - 0:16and the best way to my next destination,
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0:16 - 0:18all with a click of a button.
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0:18 - 0:21But this availability
of information and transparency -
0:21 - 0:25almost completely disappears
when it comes to consumer products. -
0:26 - 0:30If you go to the seafood counter
at your local supermarket, -
0:30 - 0:33you can probably choose
between several different types of fish. -
0:33 - 0:36But chances are,
they won't be able to tell you -
0:36 - 0:39who caught the fish,
where precisely it was caught, -
0:39 - 0:41whether it is sustainable
to catch it there -
0:41 - 0:43and how it got transported.
-
0:44 - 0:47And that holds true
for almost everything we buy. -
0:47 - 0:49Every can of soup,
-
0:49 - 0:51every piece of meat, every T-shirt.
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0:51 - 0:54We as humans, right now,
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0:54 - 0:57are destroying the only thing
we really need to survive: -
0:57 - 0:58our planet.
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0:58 - 1:01And most of the horrible problems
that we're facing today, -
1:02 - 1:03like climate change
-
1:03 - 1:05and modern slavery in supply chains,
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1:06 - 1:07come down to decisions.
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1:07 - 1:13Human decisions to produce something
one way and not another. -
1:13 - 1:15And that's how we, as consumers,
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1:15 - 1:18end up making decisions
that harm the planet -
1:18 - 1:20or our fellow humans.
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1:20 - 1:22By choosing the wrong products.
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1:23 - 1:27But I refuse to believe
that anybody here in this room, -
1:27 - 1:29or frankly, anybody on this planet,
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1:29 - 1:31really wants to buy a product
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1:31 - 1:34that harms the planet
or our fellow humans -
1:34 - 1:35if given the choice.
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1:37 - 1:39But you see, choice is a loaded word.
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1:39 - 1:41Choice means there's another option.
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1:41 - 1:44Choice means you can afford that option.
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1:44 - 1:46But choice also means
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1:46 - 1:50you have enough information
to make an informed decision. -
1:50 - 1:55And that information nowadays
simply just doesn't exist. -
1:55 - 1:58Or at least it's really,
really hard to access. -
2:00 - 2:02But I think this is about to change.
-
2:02 - 2:06Because we can use technology
to solve this information problem. -
2:06 - 2:09And many of the specific technologies
that we need to do that -
2:09 - 2:13have become better and cheaper
over the recent years, -
2:13 - 2:15and are now ready to be used at scale.
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2:15 - 2:17So, over the past two years,
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2:17 - 2:19my team and I have been working
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2:19 - 2:23with one of the world's largest
conservation organizations, WWF, -
2:23 - 2:26and we've founded a company called OpenSC,
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2:26 - 2:29where SC stands for supply chain.
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2:30 - 2:32And we believe that by using technology
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2:32 - 2:35we can help to create
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2:36 - 2:39transparency and traceability
in supply chains, -
2:39 - 2:42and through that,
help to completely revolutionize -
2:42 - 2:47the way that we buy
and also produce products as humans. -
2:48 - 2:52Now, some of this is going to sound
a little bit like science fiction, -
2:52 - 2:54but it's already happening.
-
2:54 - 2:55Let me explain.
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2:56 - 2:59So, in order to solve
this information problem, -
2:59 - 3:01we need to do three things:
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3:01 - 3:04verify, trace and share.
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3:04 - 3:07Verify specific sustainability
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3:07 - 3:09and ethical production claims
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3:09 - 3:12in a data-based and automated way.
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3:12 - 3:15Then trace those
individual physical products -
3:15 - 3:17throughout their supply chains,
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3:17 - 3:20and finally, share
that information with consumers -
3:20 - 3:22in a way that truly gives them a choice
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3:22 - 3:24and lets them make consumption decisions
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3:24 - 3:27that are more aligned with their values.
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3:27 - 3:30I'm going to use a real product
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3:30 - 3:35and a supply chain where we've made
all of this a reality already: -
3:35 - 3:36a Patagonian toothfish,
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3:36 - 3:39or Chilean sea bass,
as it's called in the US. -
3:39 - 3:41Number one, verify.
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3:42 - 3:44Verify how something is produced.
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3:44 - 3:47But not just by saying,
"Trust me, this is good, -
3:47 - 3:49trust me, we've done
all the right things," -
3:49 - 3:53but by producing evidence
for that individual physical product, -
3:53 - 3:56and the way it was produced.
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3:56 - 3:57By producing evidence
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3:57 - 4:01for a specific sustainability
or ethical production claim. -
4:01 - 4:04So for example, in the case of the fish,
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4:04 - 4:08has this fish been caught in an area
where there's enough of them, -
4:08 - 4:10so that it's sustainable
to catch it there -
4:10 - 4:12and not in a marine protected area?
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4:12 - 4:14So what we're doing here
-
4:14 - 4:18is we're taking almost real-time
GPS data from the ship -- -
4:18 - 4:19the ship that's fishing --
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4:19 - 4:21and that tells us where the ship is
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4:21 - 4:24and where it's going at what speed.
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4:24 - 4:27And we can then combine that
with other types of data, -
4:27 - 4:30like, for example,
how deep the sea floor is. -
4:30 - 4:33And combining all of this information,
-
4:33 - 4:37our machine-learning algorithms
can then verify, in an automated way, -
4:37 - 4:41whether the ship is only fishing
where it's supposed to, or not. -
4:42 - 4:44And as sensors become cheaper,
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4:44 - 4:46we can put them in more places.
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4:46 - 4:49And that means we can capture more data,
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4:49 - 4:52and combining that
with advancements in data science, -
4:52 - 4:55it means that we can now verify
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4:55 - 4:59specific sustainability
and ethical production claims -
4:59 - 5:03in an automated, real-time
and ongoing manner. -
5:03 - 5:07And that really lays the basis
for this information revolution. -
5:07 - 5:10So, number two, trace.
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5:10 - 5:13Trace those individual physical products,
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5:13 - 5:15so that we can truly say
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5:15 - 5:17that the claim that we've verified
about a certain product -
5:18 - 5:20actually belongs
to that individual product -
5:20 - 5:23that we as consumers
have right in front of us. -
5:23 - 5:26Because without
that level of traceability, -
5:26 - 5:29all that we've really
verified in the first place -
5:29 - 5:32is that somebody, somewhere, at some point
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5:32 - 5:34caught a fish in a sustainable way,
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5:34 - 5:39or didn't harm the employee
when asking them to produce a T-shirt, -
5:39 - 5:44or didn't use pesticides when growing
a vegetable that didn't actually need it. -
5:45 - 5:49Only if I give a product
an identity from the start -
5:49 - 5:52and then trace it
throughout the whole supply chain, -
5:52 - 5:56can this claim and the value
that's been created -
5:56 - 5:58by producing it in the right way
-
5:58 - 6:00truly stay with it.
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6:02 - 6:04Now, I've talked about cheaper sensors.
-
6:04 - 6:07There are many other
technological developments -
6:07 - 6:11that make all of this much more possible
today than every before. -
6:11 - 6:14For example, the falling costs of tags.
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6:15 - 6:18You give a product a name,
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6:18 - 6:20a serial number, an identity,
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6:20 - 6:22the tag is its passport.
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6:22 - 6:25What you can see here
is a toothfish being caught. -
6:25 - 6:28This is what's called a longline fishery,
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6:28 - 6:32so the fish are coming up
onto the boat on individual hooks. -
6:32 - 6:34And as soon as the fish is on board,
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6:34 - 6:37it is killed, and then after that,
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6:37 - 6:40we insert a small tag
into the fish's flesh. -
6:40 - 6:45And in that tag, there is an RFID chip
with a unique serial number, -
6:45 - 6:48and that tag follows the fish
throughout the whole supply chain -
6:48 - 6:50and makes it really easy
to sense its presence -
6:50 - 6:53at any port, on any truck
or in any processing plant. -
6:53 - 6:57But consumers can't really read RFID tags.
-
6:57 - 7:01And so, when it comes to filleting
and packaging the fish, -
7:01 - 7:04we read the RFID tag and then remove it.
-
7:04 - 7:08And then we add a unique QR code
to the packaging of the fish. -
7:08 - 7:13And that QR code then points back
to the same information -
7:13 - 7:15that we've verified about the fish
in the first place. -
7:17 - 7:21And so, depending on the type
of product that we're working with, -
7:21 - 7:25we may use QR codes, bar codes, RFID tags
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7:25 - 7:27or other tag technologies.
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7:27 - 7:29But there are also technologies
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7:29 - 7:31that are at the brink
of large-scale breakthrough -
7:31 - 7:33that make tags themselves obsolete.
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7:33 - 7:35Like, for example,
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7:35 - 7:37analyzing a product for trace elements
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7:37 - 7:41that can then tell you quite accurately
where it is actually from. -
7:41 - 7:42Then there's blockchain.
-
7:42 - 7:47A decentralized technology
can act as a catalyst for this revolution. -
7:47 - 7:51Because it can help mitigate
some of the trust issues -
7:51 - 7:55that are inherent
to giving people information -
7:55 - 7:58and then asking them
to change their consumption behavior -
7:58 - 8:00because of that information.
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8:00 - 8:03And so, we use blockchain technology
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8:03 - 8:06where it adds value to what we're doing.
-
8:06 - 8:07But importantly,
-
8:07 - 8:11we don't let the limitations
that this technology still has today, -
8:11 - 8:13like, for example,
with regards to scaling, -
8:13 - 8:15we don't let that stand in our way.
-
8:15 - 8:17And that brings us to the third point.
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8:17 - 8:18Share.
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8:18 - 8:22How to share the information
that we've verified and tracked -
8:22 - 8:25about where a product is from,
how it was produced -
8:25 - 8:28and how it got to where it is?
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8:28 - 8:30How to share this information
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8:30 - 8:32is really different
from product to product. -
8:32 - 8:35And different from where you buy it.
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8:35 - 8:37You behave differently
in those situations. -
8:37 - 8:41You are stressed and time-poor
in the supermarket. -
8:41 - 8:43Or with short attention span over dinner,
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8:43 - 8:46because your date is so cute.
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8:46 - 8:49Or you are critical and inquisitive
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8:49 - 8:52when researching
for a larger purchase online. -
8:53 - 8:54And so for our fish,
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8:54 - 8:57we've developed a digital experience
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8:57 - 9:03that works when buying the fish
in a freezer in a fish specialty store -
9:03 - 9:07and that gives you all of the information
about the fish and its journey. -
9:07 - 9:10But we also worked with a restaurant
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9:10 - 9:13and developed a different
digital experience -
9:13 - 9:16that only summarizes the key facts
about the fish and its journey, -
9:16 - 9:19and works better in a dinner setting
-
9:19 - 9:22and, hopefully, there
doesn't annoy your date too much. -
9:22 - 9:25Now, that brings us full circle.
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9:25 - 9:28We've verified that the fish was caught
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9:28 - 9:31in an area where
it's sustainable to do so. -
9:31 - 9:33We've then traced it throughout
the entire supply chain -
9:33 - 9:37to maintain its identity and all
the information that's attached to it. -
9:37 - 9:40And then, we've shared
that information with consumers -
9:40 - 9:42in a way that gives them a choice
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9:42 - 9:44and lets them make consumption decisions
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9:44 - 9:47that are more in line with their values.
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9:48 - 9:52Now, for this fish example,
this is already rolled out at scale. -
9:52 - 9:53This season,
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9:53 - 9:57the entire fleet of the world's largest
toothfish fishing company, -
9:57 - 9:58Austral Fisheries,
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9:58 - 10:01is tagging every single fish
that they catch -
10:01 - 10:04and that ends up in their premium
branded "Glacier 51" product. -
10:05 - 10:07And you can already buy this fish.
-
10:07 - 10:11And with it, you can have all
of the information I talked about today, -
10:11 - 10:13and much more,
-
10:13 - 10:17attached to each individual fish
or portion of the fish that you may buy. -
10:19 - 10:23But this is not a fish or seafood thing.
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10:23 - 10:26We're working on many, many
different commodities and products -
10:26 - 10:28and their supply chains across the globe.
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10:28 - 10:31From dairy to fruit and vegetables,
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10:31 - 10:34to nonfood products made out of wood.
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10:34 - 10:38As a consumer, all of this
may sound like a huge burden, -
10:38 - 10:42because you don't have time
to look at all of this information -
10:42 - 10:44every time you buy something.
-
10:44 - 10:46And I don't expect you to,
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10:46 - 10:49because you'll have help with that.
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10:49 - 10:55In the future, we'll leave the decision
of which specific product to buy -
10:55 - 10:57increasingly up to machines.
-
10:57 - 10:59An algorithm will know enough about you
-
10:59 - 11:03to make those decisions for you,
so you don't have to. -
11:04 - 11:06And maybe it will even do
a better job at it. -
11:06 - 11:09In a recent study, 85 percent of those
-
11:09 - 11:12buying a product
through a virtual assistant -
11:12 - 11:14said that they, on occasion,
-
11:14 - 11:16actually went with the top
product recommendation -
11:16 - 11:17of that virtual assistant,
-
11:17 - 11:19rather than the specific product or brand
-
11:19 - 11:22that they set out
to buy in the first place. -
11:22 - 11:24You just say you need toilet paper,
-
11:24 - 11:28it's then an algorithm that decides
which brand, price point -
11:28 - 11:32or whether you go with recycled or not.
-
11:32 - 11:36Well, nowadays this is usually based
on what you bought in the past, -
11:36 - 11:40or whoever pays the most to the company
behind the virtual assistant. -
11:40 - 11:44But why shouldn't that be also
based on your values? -
11:46 - 11:48Knowing that you want
to buy planet-friendly -
11:48 - 11:54and knowing whether and how much
you're willing and able to pay for that. -
11:54 - 11:57Now, that will make it easy and seamless,
-
11:57 - 12:00but still based
on granular effects and data -
12:00 - 12:02to choose the right products.
-
12:02 - 12:04Not by necessarily doing it yourself
-
12:04 - 12:06but by asking an algorithm
-
12:06 - 12:10that knows how much you care
about this planet. -
12:10 - 12:12Not by necessarily doing it yourself
-
12:12 - 12:14but by asking an algorithm
-
12:14 - 12:17that is never time-poor or distracted,
-
12:18 - 12:22or with short attention span
because of the cute date, -
12:22 - 12:24and that knows how much
you care about this planet -
12:24 - 12:26and the people living on it,
-
12:26 - 12:30by asking that algorithm to look
at all of that information for you -
12:30 - 12:31and to decide for you.
-
12:32 - 12:37If we have reliable
and trustworthy information like that -
12:37 - 12:39and the right systems that make use of it,
-
12:39 - 12:43consumers will support those
who are doing the right thing -
12:43 - 12:47by producing products
in a sustainable and ethical way. -
12:47 - 12:49They will support them every time
-
12:49 - 12:51by choosing their goods over others.
-
12:52 - 12:57And that means that good
producers and processors and retailers -
12:57 - 12:58will get rewarded.
-
12:58 - 13:03And bad actors will be forced
to adjust their practices -
13:03 - 13:05or get out of business.
-
13:05 - 13:07And we need that.
-
13:07 - 13:11If we want to continue to live together
on this beautiful planet, -
13:11 - 13:13we really need it.
-
13:13 - 13:14Thank you.
-
13:14 - 13:16(Applause)
- Title:
- How supply chain transparency can help the planet
- Speaker:
- Markus Mutz
- Description:
-
Given the option, few would choose to buy products that harm the earth -- yet it's nearly impossible to know how most consumer goods are made or where they're sourced from. That’s about to change, says supply chain innovator Markus Mutz. He shares how he used blockchain technology to track Patagonian toothfish on their journey from ocean to dinner plate -- and proved it's possible to offer consumers a product they can trust.
- Video Language:
- English
- Team:
- closed TED
- Project:
- TEDTalks
- Duration:
- 13:29
Erin Gregory commented on English subtitles for How supply chain transparency can help the planet | ||
Erin Gregory edited English subtitles for How supply chain transparency can help the planet | ||
Oliver Friedman edited English subtitles for How supply chain transparency can help the planet | ||
Oliver Friedman edited English subtitles for How supply chain transparency can help the planet | ||
Erin Gregory approved English subtitles for How supply chain transparency can help the planet | ||
Erin Gregory edited English subtitles for How supply chain transparency can help the planet | ||
Joanna Pietrulewicz accepted English subtitles for How supply chain transparency can help the planet | ||
Joanna Pietrulewicz edited English subtitles for How supply chain transparency can help the planet |
Erin Gregory
Updated 2/13/2020
12:52 - 12:57
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