Startup Applies AI To Improving Coffee Supply Chain Transparency

DENVER -- An application of artificial intelligence to grading coffee at its source, and of blockchain authentication to assure the integrity of the results, was displayed by bext360 at the recent TechCrunch Sessions: Robotics at MIT event in Boston.

Bext360 develops technologies to streamline critical supply chains in emerging economies. The coffee industry, based primarily on small growers in developing countries, is a natural fit.

"While new research from the Annals of Internal Medicine strengthens the correlation between coffee consumption and health benefits, most consumers cannot identify the source of their daily cup, nor the impact it has on the global environment," said bext360 chief executive Dan Jones.

Contemporary coffee connoisseurs (and millennials in particular) increasingly are invested in supply-chain transparency. This interest highlights the importance of reliable verification methods for fair trade certification. Jones observed.

"The announcement of Amazon's upcoming acquisition of Whole Foods highlights this trend, and is motivated, I believe, by Amazon's desire to create a truly transparent supply chain from producers, to storefronts, and, finally, to consumers," he suggested. But "the current coffee supply chain is antiquated," he said.

Jones explained that bext360's technology "applies machine learning and AI to analyze coffee cherries and beans based on the quality of the goods. Coffee farmers access a mobile app to review the results, and Stellar.org's blockchain platform allows immediate payment and immutable traceability."

According to bext360, this platform will enable all stakeholders -- farmers, roasters, and consumers -- to access data across the entirety of the supply chain. For example, coffee companies can assess the quality and efficiency of farming practices while at the same time analyzing supply chain dynamics, in order to inform improvements to supply chain efficiencies.

In April 2017, bext360 exited its initial stealth phase with $1.2 million in seed funding. The company will pilot the "bextmachine" this fall with end-to-end coffee partners, from local coffee co-ops and suppliers to popular roasters. Bext360 will formally announce selected partners in the coming months, in addition to sharing information about purchasing opportunities.

According to bext360, its technology builds on the recent and ongoing fundamental shift in mobile access, renewable energy, microfinance, and mobile/digital currencies in developing countries.