Blockchain-Based Supply Chain Tracker: SAP Leading The Way

SAP and Blockchain

SAP has been the forerunners of Technological Innovation, and this initiative is no different. By collaborating with some firms in food, pharmaceuticals, shipping, and technology, they have visualized an innovative use for blockchain, as a digital supply chain tracker.

After Maersk and IBM announced a joint venture to attain similar goals, SAP is using its already established Cloud as the platform for blockchain. The development of this idea is done in partnership with seven tech companies namely HP and Intel.

SAP Cloud and Blockchain

SAP Cloud applications involve the usual platform as a Service(PaaS) feature. The SAP HANA Cloud platform is being used to deploy and operate the supply chain tracker. This opens up a vast field of opportunity.

SAP HANA Cloud platform has a large customer base and users who employ this service. The SAP HANA Cloud Integration of blockchain will enable these users to be involved in the task of piloting this blockchain. It is said that the existing customers can transition from Cloud-based applications to the ones based on blockchain for steering the ledger that runs on it.

Blockchain Tracker: Goals and Benefits

Blockchain gained popularity as a shared electronic ledger which was used to keep track of the trade and transfer of cryptocurrency. But once the idea of using a shared record gained momentum, many firms across all fields have contemplated adopting blockchain as a means to monitor their trading and services.

The blockchain is very popular as a tracking mechanism due to its superior reliability. The fact that it offers visibility of the goods and services logged into it, along with real-time monitoring makes it much better than conventional options, and it’s counterparts.


One of the main aspects of Blockchain that makes it such a popular concept is the visibility that it brings to anything coupled with it. The nature of blockchain demands real-time updates on location and state of the data stored in it. Consequently, this means that the asset associated with said data is also visible through this.

Blockchain works as a ledger shared between multiple users, with different levels of clearance and access. Depending on this, they can access and monitor the information in the network to different extents. However, any alterations in the status of any data will be visible to all the people involved with said data.


Blockchain also acts as a platform for live, real-time auditing of goods and services monitored by it. Usually, these products cannot be monitored continuously, and hence are subject to tampering while traversing the supply chain.

Blockchain not only minimizes any unknown modifications to the product but also alerts the parties involved in any such anomalies. Using this feature, one can reduce disputes with regard to the quality of the product. One can also identify when and where any unauthorized modifications take place since the chain has provisions to store this data.

Infinite Scope: SAP HANA Platforms and Blockchain

The salient feature of Blockchain is the speed with which data can be spread from one system to all the others which are part of the network. This brings unparalleled transparency to the sector, where all parties involved in a trade can monitor and verify the product while it is on the way.

Tracking and Monitoring

SAP has partnered with almost 65 companies in this joint venture. The SAP Cloud platform has been in these works for quite some time, but support programs such as the ones for data entry and monitoring software are yet to reach a working prototype stage.

IoT sensors and tracking software are also being developed for SAP. Programming the sensors to transmit data onto the Cloud Platform is also under preparation by Modum, an SAP Customer, in partnership with the SAP Innovation Center Network.

Modum sensors can monitor environmental factors such as temperature, humidity, and other factors to be followed to ensure that they are well within the allowed limit. These sensors can also be paired with mobile platforms via apps which can then be linked to the Cloud Platform.

Smart Contract

Using a Cloud-Based Blockchain platform also allows the use of Smart Contracts, that contain parameters which need to be maintained during shipping and transport, ownership details, and other essential data regarding the cargo.

These contracts are not only more potent than the conventional pen and paper ones but also are digitally stored to make them available to all parties at once. Since they are linked to the Blockchain, any one party cannot alter the terms of this contract without the knowledge and consent of the other stakeholders involved.

Utility and Flexibility

Modum, the company that develops these sensors have previously worked with Ethereum

based Blockchain, and have now switched over to Hyperledger. The switch is to focus more on the power of Blockchain as a tracking program which is done through SAP as well. They are also conducting tests to link SAP’s relational database services to Cloud. It will allow seamless data transfer between the two.

Blockchain as a smart business automation service is an innovative concept. However, connecting IoT devices to the Cloud will enable IoT and Blockchain to work together for a more smooth experience.

The Verdict

The Blockchain is a very disruptive innovation that has revolutionized the way companies function. From cryptocurrency to logistics, it has a scope in almost any field. This simple yet effective format of a shared electronic ledger is more important than it may sound.

SAP utilizing blockchain to make supply chain trackers is indeed a step in the right direction. This is a way where data sharing and monitoring capabilities can be put on good use. Soon, this will be the norm for all the big names in this sector.

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