Digital Solutions for the Supply Chain Act

Adey Meselesh's digital solutions provide more transparency, precise tracking of products and their management for the implementation of the supply chain law. With the use of blockchain technology, complex supply chains can be easily managed. It also allows relevant data and information to be brought together in a decentralised system. Due to the encryption technologies used by the blockchain, transactions can hardly be manipulated. The legal requirements can thus be implemented well.

The start of the implementation of the Supply Chain Act is 1 January 2023 for large companies with 3,000 or more employees, which means that these companies must improve and document their processes along the entire supply chain. Specifically, the aim is to be able to track working conditions throughout the entire production chain. Special emphasis is also placed on respect for human rights as well as compliance with sustainability and environmental protection.

The focus for companies is blockchain technology and the individual development of smart contracts that trigger automated processes, deliveries and transactions in supply chains. These can be connected to your existing ERP systems through APIs or you can use Adey Meselesh's lean ERP system.
For small to medium sized suppliers, such as farmers, we offer a practical app so that suppliers who have not yet gone digital also have the opportunity to continue to offer and deliver products.

With our IT services you can:

• Use blockchain technology to share information in decentralised networks and keep track of the actors involved in the process.
• Use blockchain technology to track individual products within each step of the process from producer to sale
• Use smart contracts to digitalize contracts, audits etc

The blockchain will be formed by the consortium of stockholders in the respective business process even including human right and environmental regulatory bodies. Asset transaction will be executed based participating peers consensus and the committed peer will be distributed to those peers as a block and form blockchain (shared ledger) based on its chronological order. From then onwards the shared ledger serve as a single source of truth since it is hard to change without the involvement of the others in the network. The chronological blockchain information also used as process auditing source.

In our blockchain solution, the information is accessible with in the network which provides transparency solution for the business. It is able to record the source as well route of products including value add process to provide asset traceability. Each stockholders peer in the network has their own interface to the network to execute transactions, access their ledger and give information to their client.

The German Supply Chain Due Diligence Act protects people and the environment within the supply chain and its long-term goal is a European directive. This also has implications for suppliers in developing countries such as Ethiopia, where Adey Meselesh also operates a site. Our local partners are interested in respecting human rights and the environment. They want to continue trading with Germany and Europe. At the same time, digitalisation is taking place there in slower steps, so the introduction of technological solutions is very important to maintain the economy and trade participation there.