News n Views December 2024

10 Since the last five years there have been many rapidly emerging technologies that have been adopted by various industries all over the world. It is remarkable how sophisticated these frontier technologies are bringing in a new dawn of how business is being done. Statista reports that over 37% of businesses and organisations have adopted some form of AI as of 2020. This figure is expected to grow exponentially, with PwC predicting that AI could contribute up to £12.56 trillion to the global economy by 2030 (https:// www.pwc.com/AI). One application that stands out as a future value-adding prospect for Forestry would be blockchain Technology. What is blockchain technology? Blockchain acts as a digital notebook that tracks the origin of the data through various activities in a supply chain, providing transparency about where the data came from, who processed it, and how it was collected. This becomes a digital ledger that records and logs in real-time each supply chain activity. The process ensures that everyone involved in a transaction has access to the same information, fostering transparency and trust. For forestry, this means that every step of the timber supply chain can be documented, verified, and accessed by all stakeholders. Once a transaction is recorded, no one can go back and change it. This means that all the steps in getting timber from the forest to the mill are transparent and can’t be tampered with. All the parties involved, such as the farmers, transporters, and the mill, can access the same information, ensuring trust and accuracy throughout the process. This helps everyone make sure that timber is coming from the right source and being processed correctly. Implementing this approach could result in examples such as the following: 1. Timber Harvesting and Logging Data When timber is harvested from a farm, every batch of timber is assigned a unique identifier recorded on the blockchain. This identifier includes vital information such as: Tree species, date of harvest, location (GPS), volume of timber, felling date, certifications etc. This data can be captured using mobile applications and each entry is digitally signed using the farmer’s private key which is secure and ensures authenticity. 2. Transporting Timber Once the timber is harvested, delivery to the relevant market can be arranged. The grower can request transportation from their preferred service provider to efficiently schedule the movement of trucks. The blockchain automatically records this transport request and establishes a smart contract between the timber grower and the transporter. As the timber moves through the supply chain, from the farm to the mill, each step is logged in realtime on the blockchain 3. Processing at the Mills When the timber arrives at the mill, it is logged into the blockchain system using its unique identifier as noted in step one. Quality assurance checks are performed on the received timber. This may involve inspecting the timber for defects and verifying that it matches the specifications in the blockchain. The results of the quality assurance checks are recorded on the blockchain. If the timber meets all standards, it is approved for processing. If there are issues, the results are logged as discrepancies. If a discrepancy is found (for example, the timber doesn’t meet quality standards or doesn’t match the unique identifier), the system recognises this automatically. Once a discrepancy is detected, a smart contract on the blockchain can be programmed to trigger an automatic notification. The supplier receives a notification detailing the issue with the timber (e.g., the specific reason for rejection, quantity affected, and any relevant quality check data). The supplier can then respond to the notification, address the issue (e.g., replace the rejected timber or provide further information), and update the blockchain with the resolution details. – Merisha Bepat – Business and Logistics Analyst –

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