E-commerce giant Alibaba (Australia) has launched a blockchain pilot aimed at improving supply chain traceability, according to ZDNet.

The pilot has been launched in collaboration with a group of founding partners. Alibaba signed a Memorandum of Understanding (MoU) with Fonterra, NZ Post, Blackmores, and Australia Post, last year to explore new technologies including blockchain to fight counterfeit and fraudulent food products. Consulting firm PwC is participating in the project as an adviser.

Taking place in Auckland, the pilot will see orders made through Food Trust Framework – a Tmall initiative to enhance traceability of supply chains using blockchain technology. The framework aims to give end-to-end traceability and transparency throughout the supply chain to enhance consumer confidence and build a trusted trading environment.

"Food fraud is a significant global challenge, particularly with the growing complexity of supply chains," Alibaba Group general manager of Tmall Import & Export Alvin Liu added. "In response, we have created a coordinated, world-leading and robust framework that involves stakeholders from across the supply chain to improve visibility and enhance the confidence of both end consumers and merchants."

Fonterra and Blackmores are the first companies to trial the framework. Fonterra is shipping Anchor dairy products from New Zealand to consumers in China, who can purchase them on Alibaba’s Tmall Global platform. Blackmores, on the other hand, is shipping Odorless Fish Oil from Australia to China.

If the pilot is successful, the framework could serve as a basis to a global supply chain model which would be implemented across all of Alibaba Group’s e-commerce markets, FoodMag reported.