The distributed ledger technology in simpler words- Blockchain keeps the potential to disrupt any industry type or any business model. Without any disparity in the size or complexity of the business model, blockchain is presumed to make significant changes in the business undertakings.
Today, with the power of blockchain, industries are reestablishing their lost trust, simplicity and accuracy of carrying various tasks. With blockchain, more secure and speedy financial transactions, enhanced customer experiences, traceability of records are accomplished. Operations such as Document verification, Banking, and Financial Services, needless to say, Healthcare are witnessed with exemplary remarks and changes in their conduct.
The manufacturing industry is no different from this. The adoption of blockchain technology in Manufacturing is revolutionizing the way the industry is performing. From operational excellence to product authenticity, consumer experience to the quality of care, blockchain is bringing several changes to the manufacturing business sector.
So what particularly interests a manufacturing industry to implement blockchain in their operational circuit?
It is none other than the benefits of verification and transparency, blockchain technology awards. Blockchain can radically change the facet of the manufacturing industry via offering a platform that is more secure and transparent to conduct transactions and services.
Let’s see it in detail.
When it comes to the supply chain of manufacturers it always is seen to be the most sophisticated or refined, complex associations. And with various subtleties, it becomes highly challenging in terms of establishing transparency and accountability in business. Especially with the logistics. With blockchain technology in hand, manufacturers can bring in an increased level of visibility to various manufacturing processes, such as manufacturing of different service parts, quality checks, repairs, shipping of new equipment and so forth.
Being decentralized and shared across different nodes the information about a product/ service parts, taking proactive measures in the operations is made simpler with blockchain. Before it ever breaks down, the management can take sufficient measures by looking at the continually-reconciled database of blockchain. Recognizing issues within the supply chain processes and streamlining them is achieved in a few span of time via blockchain.
For instance, company X delivers a vehicle with faulty parts- resulting in great loss to the buyer, tracing them via traditional means is no less than a tricky challenge. However, with blockchain, one can easily trace the supplier as blockchain keeps a record of every transaction. Via blockchain, the issue is solved faster at the same time reduced the spending over of larger time and labor cost by business to solve supply chain issues. Before a matter gets widespread to a larger mass, blockchain helps in quickly identifying them and mitigate them in real-time.
In addition, via cutting middlemen, and improving security, Blockchain changes totally the manufacturing supply chains and its data management. Smart Contracts help in eliminating the interplay of people such as intermediaries in the business. Thus the business is benefitted from saving a lot of time. Moreover, the payment that takes too much time for validation or approval in a conventional setup gets quicker with blockchain.
Smart contracts created for the projects, make the payments faster soon the parties fulfill the conditions set within.
1. IBM and Maersk (a leading shipping company) tested the technology of blockchain in logistics operations. It was revealed that blockchain can be an effective medium for tracking containers during shipping processes. Tracking via blockchain, simply reduced the amount of human effort undertaken for tracing things, also paperwork associated to shipment. Via blockchain, every performer in the supply chain is brought to the limelight and made easier access of information that is relevant to act on.
2. Project Provenance Ltd. is reestablishing the trust in the supply chain. The idea is digital passport for every product proving its authenticity and origin. The central aim is to enhance the transparency within the supply chain and totally eliminate the sale of fake goods in the business. The project stringent the working and environmental standards existing for many products. It also ensures that the transfers of ownership are carried under the supervision of relevant controllers.
3. Start up-Everledger used blockchain for registering diamonds, thereby securing their transaction history and ownership. They strongly believe blockchain technology can identify machines in an IoT context.
Key features of blockchain for the manufacturing industry
|Immutability||Featuring no change in the data or information once its stored in DLT or Blockchain.|
|Traceability||Easy tracing of information and data for quick business decisions.|
|Decentralization||Data distributed in network/different nodes making it accessible to every participant in network.|
|Data security and transparency||Being cryptographically stored the information, no outsiders can change the data.|
Amalgamation of Blockchain with IoT and 3D printing in Manufacturing
Supply chain being the basic and integral part of the manufacturing industry, it advocates for a progressively effective framework that guarantees seamless and consistent business run.
If one goes for amalgamating blockchain with IoT in supply chain’s shipping segment, it is assured to bring in greater and enhanced transparency, authenticity, consistency to item and legally binding prerequisites altogether diminishing the duplication of products, furthermore the fake products. This turns out to be highly significant for industries such as Consumer Packaged Goods, Aerospace and Defense, drug store. Blockchain with IoT can guarantee these industries with hassle-free shipping, sealed stockpiling, Temperature controlled product transportation and considerably more. Installing devices like sensors onto products can simplify the whole process of real-time tracking of information, also proving the products or service parts manufactured are authentic and real.