Loss of $ 98 billion per year! Nike, CK, Tommy Hilfiger seek to use blockchain technology to tackle counterfeiting


  • Well-known clothing brands and retailers have been experimenting with blockchain and RFID tags to track products across global supply chains.
  • This Auburn University project provides a secure way for supply chain participants to share data while retaining their ownership.

Leading apparel brands such as Nike, Tommy Hilfiger and Calvin Klein (CK) are participating in a new project to track products across the global supply chain. The goal is to provide a secure way to share data while retaining data ownership.

Losing 98 billion U.S. dollars a year, brands such as Nike and CK are turning to blockchain technology to tackle counterfeiting

Source: Pixabay

This project, called the Chain Integration Project (CHIP), is led by the RFID Lab of Auburn University, Alabama, and uses the enterprise blockchain Hyperledger Fabric and RFID tags to solve the problem of forgery. These problems currently cause 98 billion dollars to brands and retailers each year. Loss of the dollar. More transparent product trails are expected to increase productivity and efficiency in the retail supply chain.

The team released a white paper on Wednesday with preliminary results. The results show that the Hyperledger Fabric network can share product data encoded with RFID tags among participants, thereby eliminating the need for manual review.

"The project" is indeed groundbreaking because it provides a vision for the future of information exchange in the retail industry, "said Justin Patton, the project's director. By exploring the intersection of RFID and blockchain technology, we have taken an important step in our mission to help eliminate costly errors and inefficiencies caused by outdated processes and legacy systems in the retail supply chain. "

Blockchain and RFID: simplifying the supply chain

Participants in the program include major retailers Macy's and Cole and IBM.

Wal-Mart and sports retailer Under Armour were involved in the early days of CHIP, but did not participate in proof-of-concept C. (Photo: RFID Lab, Auburn University)

It builds on Zipper's previous plan, Zipper, which studied RFID in the retail supply chain and found that retailers, brand owners and logistics providers all share data in different formats. By adopting blockchain technology, the CHIP program enables partners to use a common language to better view inventory and perform data analysis.

More and more blockchains are being used for traceability in the supply chain. Last year, sportswear brand New Balance, luxury brand LVMH and Coca-Cola all started trying blockchain solutions.

The RFID laboratory is planning a follow-up pilot study to study the financial impact of data exchange automation. But so far, its research has presented compelling cases that illustrate the potential of blockchain and RFID in addressing the inefficiencies of complex global supply chains.

"We finally have the best opportunity to solve these problems and save billions of dollars in the mystery of inaccurate supply chains Waste of money.