A Blockchain-Enabled Digital Twin for Leather Traceability: From Farm to Vehicle

Leather is a critical commodity for the premium and luxury automotive industry. It is a by-product of the meat industry. Hides and skins are usually collected and traded between intermediaries through which traceability is lost. The different steps of leather processing can happen in various countries around the world before reaching the end-product manufacturer. Due to this globally dispersed and complex supply chain, leather can often present environmental, social, and economic risks.

Jaguar Land Rover, the British multinational premium automotive company, uses different types of leather in various commodities of their cars (seating, headliners, doors, etc.). Because of the premium quality criterium, JLR is in direct contact with tanneries. However, the need for more visibility remains, for the upstream part of the chain from farms to hide suppliers and abattoirs to tanneries, as well as the downstream sewing and wrapping facilities. Jaguar Land Rover conducted a theoretical study with the University of Nottingham on the potential for the adoption of blockchain technology for traceability in its supply chains. Leather was recommended for a practical feasibility study given its importance to Jaguar Land Rover and the challenges that arise in its supply chain.

Jaguar Land Rover has identified Bridge of Weir, a sustainable leather manufacturer and their supplier of semi-aniline leather, as a partner to implement a pilot project for leather traceability. Circulor, a UK traceability technology provider, will develop the traceability framework to prove and guarantee the provenance of the leather.

The approach to traceability is based on the actual flow of hides through a supply chain. Via Circulor's platform, a 'digital twin' for the raw material will be created, and its progress through the supply chain will be captured at designated scan points. Verification methods like mass balance are integrated to validate and to guarantee a more transparent process.

This feasibility study will focus on how the hides and skins can be physically identified and digitalised, from the animal on the farm and throughout the hide tanning processing. This will ultimately provide the insights necessary to implement traceability to the whole leather supply chain. The proof of provenance will benefit the end consumer, ensuring responsible and sustainable leather sourcing. Jaguar Land Rover will be able to improve supply chain performance, prevent and mitigate supply chain risks and disruptions.

Implemented as a pilot with one Scottish leather producer, it could be extended later to other leather producers and industries.