Traceability System on Mangosteen Supply Chain Management Using Blockchain Technology: A Model Design
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Monografico
DOI: http://dx.doi.org/10.25115/eea.v39i4.4565
Volumen:39-4 // ISSN: 1133-3197
Traceability System on Mangosteen Supply Chain
Management Using Blockchain Technology: A Model Design
RESISTA VIKALIANA1, RAJA ZURAIDAH RAJA MOHD RASI2, I NYOMAN PUJAWAN3
1
Faculty of Technology Management and Business, UNIVERSITI TUN HUSSEIN ONN MALAYSIA, MALAYSIA,
E-mail: resistav31@gmail.com
2
Faculty of Technology Management and Business, UNIVERSITI TUN HUSSEIN ONN MALAYSIA, MALAYSIA,
E-mail: rzuraida@uthm.edu.my
3
Department of Industrial Engineering, INSTITUT TEKNOLOGI SEPULUH NOVEMBER-ITS, MALASIA,
E-mail: pujawan@gmail.com
ABSTRACT
This study aims to recommend a model of traceability system in mangosteen supply chain management using
blockchain technology. The traceability system model is designed to ensure the acceptance of safe and quality
mangosteen by consumers because consumers can search for information about mangosteen supply chain
management. In this study, blockchain technology was chosen because with blockchain technology, traceability
and capacity to share information about production processes will be made easier and trustworthy. Traceability
takes center stage in organizations supply chain; furthermore, it is a tool in fighting product counterfeiting and
protecting brands. Implementing blockchain can revolutionize the way a supply chain works.
This research consists of three stages. The first is to identify the mangosteen export supply chain. Second, identify
the form of data needed and used in mangosteen traceability. Third, the formulation of mangosteen traceability
models or designs. The results of this study describe a model design how mangosteen traceability is carried out
using blockchain technology.
Keywords: Blockchain Technology; Supply Chain Management; Mangosteen; Traceability System Model
JEL Classification: C1, L2
Recibido: 7 de Febrero de 2021
Aceptado: 2 de Marzo de 2021Resista Vikaliana, Raja Zuraidah Raja Mohd Rasi, I Nyoman Pujawan
1. Introduction
The FAO/ Food and Agriculture Organization has published a report related to tropical fruit 2020,
which states that the growth in world market demand for tropical fruit reached 2.3 percent per year
during 2008-2018. In 2018, the need for fresh fruit will reach 210 million tons. 99 percent of the total
tropical fruit comes from developing countries. In terms of total production per region, Asia
contributed 56 percent, Latin America 26 percent, and Africa 15 percent.
Indonesian fruit during January-June 2020 grew 23.2 percent compared to the same period the
previous year to US $ 430.4 million (based on data from the Central Statistics Agency/ BPS). Indonesian
pineapple is recorded as the highest export commodity, aimed at the markets of the United States, the
Netherlands, Spain, Germany and Japan. Pineapple has an export value of IDR 1.6 trillion. In the next
order is mangosteen, with a total export value of IDR 1.09 trillion for the main export to Hong Kong,
Malaysia and Saudi Arabia.
In 2019, local fruit production reached 22.5 million tons. In the January to May 2020 period, the
export demand for fresh fruit reached 375,000 tons. The added value of exports has even increased by
73.4 percent compared to the same period in 2019 (based on data from the Central Statistics Agency/
BPS). It is predicted that Indonesian fruit exports will continue to increase during the pandemic.
On the production side, the trend of local fruit production in the last 4 years has been confirmed to
have increased. In 2019, local fruit production reached 22.5 million tons, an increase of 4.8 percent
compared to 2018. However, the largest centers of mangosteen are dominated by natural agricultural
management, so productivity is not optimal. Even though they already have plantation certification
and follow the rules of the Quarantine Agency, export destination countries require a transparent
traceability system for fresh fruit, including mangosteen (Haryanti et al., 2018; Kustiari et al., 2012).
Local fruit has experienced an average production increase trend in the last 4 years amounting to 10.12
percent.
Mangosteen as an export commodity is a perishable agribusiness product. Agribusiness
commodities require accuracy in their supply chain. The length of the supply chain in Indonesia creates
problems in the assurance of fruit quality and price (Padjung, 2018)Traceability system is a complex
system that involves many entities or actors in the supply chain such as farmers, wholesalers,
distributors, retailers and consumers. An established agribusiness commodity supply chain traceability
system can overcome food quality and safety issues (Haryanti et al., 2018; Xu et al., 2019).
Traceability is important, both for domestic interests and for export/ import purposes, in other
words traceability is a global issue (Engelseth, 2009). Agribusiness commodity traceability is intended
to provide information on all or part of the supply chain for agricultural products from harvesting,
transportation, storage to distribution and sales, which can ensure the quality and safety of products
distributed or consumed by consumers. (Pappa et al., 2018; Qian et al., 2020), support tracing product
recall, facilitate the verification of the product by the government, and can create effectiveness and
efficiency of inventory management across the supply chain members (Alfaro & Rábade, 2009).
An electronic system based on information technology is needed to conduct research on
agribusiness commodities (Pappa et al., 2018; Qian et al., 2020; Vanany et al., 2015). Previous
technology specifically proposed the use of Radio Frequency Identification (RFID) technology for
traceability of agribusiness commodities (Badia-Melis et al., 2015; Barge et al., 2014; Gautam et al.,
2017). In fact, RFID is the main method used to implement a traceability system and it has been used
widely. The advantages of the RFID technology over bar codes and other automated data collection
technologies are reliability in heavy moisture, noisy, or dirty environments, and greater flexibility in
reading the tags in a wider scanning area. (Myerson, 2019).
Beside its many benefits, it is difficult for the public to understand and trust the RFID data for a
traceability scheme. RFID information reliability has always been a concern. Because most traceability
systems are designed by their suppliers, the manufacturing or operating company makes the data
simple to change and forge. Therefore, in order to gain public trust, a video surveillance system is
needed to validate the traceability scheme (Mao et al., 2015).
2Traceability System on Mangosteen Supply Chain Management Using Blockchain Technology: A Model Design
Blockchain is considered to be a key technology for IoT development (Reyna et al., 2018). The most
promising uses of Blockchain are cryptocurrencycities, smart contracts, smart cities, electronic records,
digital identities, reputation systems, machine-to-machine communication (Efanov & Roschin, 2018).
Blockchain shares information and builds trust through smart contracts (Reyna et al., 2018) and
distributed ledger (Kumar & Mallick, 2018) as well as distributed data that records transactions among
participating members (Efanov & Roschin, 2018). Blockchain is a technology that is considered as a
new discovery after the internet (Efanov & Roschin, 2018) and proposed to be a new model in tracking
agricultural supply chains (Casado-Vara et al., 2018). So, at present, blockchain technology is a
technology that can guarantee the tracking and tracing of agricultural supply chains.
Blockchain implementation facilitates traceability and the ability to share information regarding the
production process, and makes the production process easier and more reliable. Traceability with
blockchain technology is able to prevent product counterfeiting and will protect the brand. With the
application of blockchain technology, it will revolutionize the way a supply chain works. A case study
of the early implementation of blockchain was carried out for transparency, validation and traceability
in various industries such as food, warehousing and e-commerce. (Awwad et al., 2018)
A number of previous studies only discussed macro (global) in the design of the agribusiness
commodity traceability system using blockchain technology (Behnke & Janssen, 2019; Bumblauskas et
al., 2019; Helo & Hao, 2019; Hirbli, 2018; Song et al., 2020; Tian, 2017; Vikaliana, Zuraidah, Mohd, &
Pujawan, 2020, Khan et al., 2020). These studies have not examined in detail how the need for
traceability data is managed in an agricultural product traceability information system using blockchain
technology. Therefore, this study tries to examine the traceability system model design in more detail
by taking the object of study on mangosteen and designing a traceability model starting at the farmer
level as a starting point for collecting traceability data.
This research is focused on the traceability study of mangosteen. The supply chain entity studied is
also limited to the first level, namely farmers as producers. It is hoped that the initial model or design
of this research can be an initiation of a traceability system study using blockchain technology for all
agribusiness commodities and for all supply chain entities and the formation of a supply chain
traceability model for agricultural products to increase the export competitiveness of Indonesian
agribusiness commodities, especially local fruit.
The detailed design of the local fruit supply chain traceability system is important to develop
immediately because importing countries need information on product quality and safety. In addition,
in the country there is also an increase in consumer awareness in choosing local fruit commodities.
Stakeholders such as the government need to support the development of an agribusiness commodity
traceability system, especially local fruit so that local fruit can be more competitive in the global
market.
2. Literature Review
2.1 Traceability in Supply Chain Management
It is an important thing to improve sustainable performance in supply chain management (Huo et
al., 2019). Two characteristics that describe supply chain performance: responsiveness and efficiency
(2Degrees, 2011). To meet export quality, a traceability is needed that meets international standards.
Traceability to support supply chain performance as as a driver to reach sustainability (Syahruddin &
Kalchschmidt, 2012).
Traceability of food sources must be carried out by all stakeholders in a food supply chain, to obtain
information on the level of food safety and quality and to be able to immediately take corrective
actions if there are discrepancies. Product traceability is an important matter in accordance with FAO
in 2005. In addition to the General Food Act of the European Union (EU) there is an obligation to carry
out traceability of all food and food businesses. So that business actors must be able to identify the
origin of the product and the destination of the product and then inform the competent authorities.
(Attrey, 2016).
3Resista Vikaliana, Raja Zuraidah Raja Mohd Rasi, I Nyoman Pujawan
The traceability system consists of two main capabilities. The first is the ability to track movements.
The second is to track the right to handle a food product in a food supply chain. It is important to
differentiate between tracking and tracing. Traceability is the capability to produce the history of a
product in the food supply chain and to identify the origin, movement, and relevant information
related to units and/ or collections of certain products located in the supply chain by referring to the
information recorded upstream. Whereas tracking is the capability to track the destination of a product
in the food supply chain as well as to follow the path of a particular unit and/ or product collection
through the supply chain as it moves from a company or other organization, to an end process point,
point of sale, place of service, or place of consumption (Attrey, 2016).
Challenges in the traceability of the food supply chain are of interest related to the nature of the
food supply chain, namely high safety, short code dates, and risks related to quality.(Narsimhalu et al.,
2015). Traceability sy stems create benefits for components of the food supply chain and are key to
ensuring food safety.(Giagnocavo et al., 2017).
2.2 Blockchain Technology in Traceability
Many consider that that blockchain technology is a disruptive technology. Blockchain technology
research is still at an early stage, although many researchers have realized the importance of
blockchain technology. Blockchain is a distributed ledger, which contains all information, records and
transactions in blocks. The data in the block is immutable and has trustworthiness. Any product can be
put on the blockchain, from gold to tomatoes.
All these features allow multiple networks (such as farmers, consumers, retailers) to register and
share information with maximum security, transparency and speed. All elements on the blockchain
can see the entered data. Everyone is free to approve or reject the data or information entered.
Validated data will be recorded as a chronological block that cannot be replaced by anyone. Blockchain
technology allows farmers to get transparent and reliable data, such as instant data on planting media,
namely soil moisture, also seed quality, data on climate, weather, product demand, product selling
prices, payments, and many other data, on one platform. Blockchain technology allows farmers to
connect with consumers or retailers directly or without intermediaries. This can encourage the
empowerment of small farmers to access markets easily and manage their agricultural businesses,
without having to go through the assistance of middlemen (Vikaliana, Zuraidah, Mohd, Pujawan, et al.,
2020). This certainly will reduce the problem of low income for farmers. With blockchain technology,
farmers will get transparent information in the supply chain, so they will get the real selling price of
their products.
Blockchain technology can be categorized into Public Blockhain, Private Blockchain and Permission
Blockhain. Public Blockchain are largedistributed network thar are run through internet, open for
anayone to participate at any level and have opensour e code that is maintained. Private Blockchain
tent to be smaller and do not utilize a token or crypotocurrency, closely controlled, are favored by
consortium that have trusted members and trade confidential information. Permission Blockchain
control roles that individuals can play within the network, still large and distributed systems that use
a native token, also their core code may or may not be open source (Sabah et al., 2019).
3. Research Method
In general, research is conducted using a qualitative approach, with descriptive research type.
(Creswell, n.d.). Key informants in this study were 5 farmers and 1 collector, in Wanayasa Village,
Purwakarta Regency, Jawa Barat Province, Indonesia. Wanayasa is one of the largest mangosteen
production centers in Indonesia.The data collection technique was carried out by in-depth interviews
and observation. The research was conducted in three stages.
The first stage is to identify the mangosteen fruit supply chain structure. Identification of the
mangosteen fruit supply chain is carried out by observing one of the mangosteen producing areas,
namely Purwakarta, West Java. Observations were made in one area only because the entities
observed in this study were limited to farmers as producers so that it was assumed that the distribution
4Traceability System on Mangosteen Supply Chain Management Using Blockchain Technology: A Model Design
patterns of mangosteen fruit in various regions from farmer to the next supply chain entity were not
much different.
The second stage is the identification of the form of data required and used in traceability of
mangosteen on an export scale. Interviews were conducted to find out an overview of mangosteen
fruit cultivation and the procedures for selling export mangosteen fruit by farmers.
The third stage is the preparation of a design model for export scale mangosteen traceability using
blockchain technology. This third stage is structured based on the information obtained in the first and
second stages and uses relevant literature. This third stage produces a general scheme of export scale
mangosteen traceability model that explains the role of the entities involved. This third stage also
describes the relevant forms of blockchain technology used to support the implementation of the
mangosteen fruit traceability model. The final section at this stage describes how the mangosteen fruit
traceability model works using blockchain technology in the form of a model design.
4. Result and Discussions
4.1. Mangosteen Supply Chain Structure
Supply Chain Structure based on data collection in Purwakarta Regency Mangosteen Plantation,
located in Wanayasa Village, Purwakarta Regency. In this area, mangosteen supply only received from
farmers in Purwakarta Regency. The type of mangosteen in Purwakarta is Wanayasa Varieties.
The mangosteen fruit supply chain starts from Mangosteen Farmers who deliver the mangosteen
harvest to collectors. Collectors are parties who collect and buy mangosteen crops from farmers, after
sorting the quality of the harvest. Then the mangosteen is brought to the Packing House to be packed.
At the end of the process at the Packing House, the mangosteen fruit quality is sorted, to be grouped
into mangosteen on an export scale or for domestic/ local market scale. After that, the mangosteen
fruit on an export scale is sent by the Trader to the export destination countries (Figure 1).
Figure 1 Mangosteen Supply Chain Structure
Source: Research Primary Data, 2020
Based on mangosteen supply chain structure (Figure 1), these following components are
traceability mangosteen components in Purwakarta Regency:
1. Supplier traceability
Based on the documents and records available, mangosteen supply can be identified from which
farmers are supplying and the amount of mangosteen supply. However, mangosteen has not been
given a code or identity.
5Resista Vikaliana, Raja Zuraidah Raja Mohd Rasi, I Nyoman Pujawan
2. Process traceability
In the process of sorting, grading and packing, mangosteen that has been classified based on export
quality criteria or local markets, cannot be identified from where the farm or farmer is producing
it.
3. Customer traceability
In this component, it is a component that ensures that there are records / documents to identify
consumers who receive mangosteen commodities, for export scale managed by exporters, so that
both farmers and collectors cannot identify their consumers.
4.2. Mangosteen Fruit Traceability Data
Based on literature studies and observations, the traceability data at the farm level that needs to
be managed by a traceability system is presented in Table 1.
Table 1 Mangosteen Traceability Data
Actor (s) Business Process Flow Information
Farmer (s)
Collector (s)
Name Types of Mangosteen Fruit
Size, volume, diameter, texture/ smoothness, number of
Display
petals (3), there are no ants and mealy bugs
Firmness, hardness, softness, crispness, wateriness, feels
Texture
Plant starchy, feels gritty, it looks fibrous
Taste Sweetness, acidity, sweetness, Foreign smells and tastes
Carbohydrates (including dietary fiber), protein, fats,
Nutritional value
vitamins and minerals
Fruit class Export scale or local market scale (domestic)
Plantation certificate/ GAP, managed organically/
Cultivation guide
nonorganically, type of fertilizer, fertilization time
Harvest guide Harvest tools, the age of fruit maturity,
Cultivation Guide Postharvest guide Washing, Sorting degreening, storage
Transport packaging/ containers, transportation vehicles,
Transport recommendations distribution time (from the mangosteen plantation to the
Packing House)
Implementation How to cultivate Organic/ inorganic, time of fertilization, type of fertilizer
Cultivation Location Location of fruit origin (farmer / farmer group)
Time of planting Planting date, the beginning date of mangosteen to bear fruit
Harvest Harvest time Harvest date
Age of fruit Estimated fruit age
Treatment Washing, degreening
Postharvest Name of location, name of distributor, date of sale and
Distribution
purchase, name of trader(s)
Source: Research Primary Data, 2020
Plant categories contain information on mangosteen fruit characteristics that used as a source of
information for supply chain entities (collectors to end consumers). This is to ensure that the
purchased mangosteen has appropriate characteristics stated in the plant category information.
Information on plant categories and cultivation guidelines also be used as an information source
for farmers in cultivating mangosteen. Plant category data and cultivation guidelines are inputted by
the government or the party responsible for plantation certification.
6Traceability System on Mangosteen Supply Chain Management Using Blockchain Technology: A Model Design
Data on the cultivation categories, harvest and post-harvest provides real information about the
mangosteen supply chain. This data is inputted at the farmer level, because farmers know how to treat
fruit cultivation, how to carry out the harvest and post-harvest processes. The data that is inputted by
the farmers will be read by the end consumer through the mangosteen fruit traceability system.
4.3. Design of the Mangosteen Supply Chain Tracebility Model
The blockchain type in the design of this mangosteen traceability model is the permission
blockchain. Permission Blockchain control roles that individuals can play within the network, still large
and distributed systems that use a native token, also their core code may not be open source. It means
that blockchain technology implementation is belonging by the Government. However, the entities/
actors involved in the activity will get a certain code. Financial support could motivate farmers and
cooperatives in order to invest on technologies to support traceability and information flow. In this
case, it is recommended that the implementation of blockchain technology is not the open source
type.
Table 2 A Model Design of Traceability System of Mangosteen Supply Chain Using Blockchain Technology
Block Input interrelationship
Block Arrangement
Number New Imput Previous Block Input
Block 1 Supplier (Mangosteen Farmers) Volume
When delivering the crops to the Mangosteen Fruit Appearance
collectors Attributes (number of petals,
texture, pest free)
Time and Date
Origin- Plantation Certificate/
GAP
Block 2 Collector Temperature 1 Volume
When delivering the mangosteen Trader (s)’ Order Mangosteen Fruit Appearance
fruits to the Packing House Attributes (number of petals,
texture, pest free)
Time and Date
Block 3 Packing House Temperature 2 Trader (s)’ Order
When delivering the mangosteen Mangosteen Fruit Appearance
fruits to Trader (s) Attributes (number of petals,
texture, pest free)
Time and Date
Block 4 Export/ Shipping by Trader (s) Temperature 3 Trader (s)’ Order
When the mangosteen fruits Mangosteen Fruit Appearance
delivering to export destination Attributes (number of petals,
countries. texture, pest free)
Time and Date
Block 5 Consumers (Retailers in export Temperature 4 Consumers’ Order
destination countries) Trader (s)’Order
When the mangosteen fruits
received by consumers in export
destination countries
Source: Research Observation (Adoption from https://dreamziot.com/transforming-food-supply-chain-with-blockchain-and-iot/)
Based on the model design in Table 2, the blockchain technology implementation scheme in the
mangosteen traceability system can be seen in Figure 2 below
7Resista Vikaliana, Raja Zuraidah Raja Mohd Rasi, I Nyoman Pujawan
Figure 2 Blockchain Technology Implementation Scheme Based on the Mangosteen Traceability Model Design
Source: Research Primary Data, 2020
Traceability efficiency can be driven by national policies, through due regulations, consolidation of
production quality and consumer safety. Traceability is not able to control food quality and safety, and
prevent or eliminate safety hazards independently. It has to be integrated with all actors in the food
supply chain. (Bumblauskas et al., 2019; Dupuy et al., 2005; Rogerson & Parry, 2020).
Beside the requirements fullfillment and quality of the fresh product supply chain, another national
policy that can support traceability efficiency is developing sustainable skills training. Therefore, the
farmers will enhance their understanding about new technologies. Obviously, it will help the
cooperative justify investment in new technology and can facilitate the adoption of new technology
(Grover et al., 2019; Hoek, 2019; van Hoek, 2019).
5. Conclusion
The results of this study describe a model design how mangosteen traceability is carried out using
blockchain technology. The recommended blockchain type is the Permission Blockchain type. This
type is able to be accessed with blockchain technology code or tokens, but it is recommended not
opening overseas services.
This research is a preliminary research. Future research is expected to review the fruit traceability
model in more depth. However, the results of this research can be used as an initial model in building
a traceability model design in the fruit supply chain.
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