What is a blockchain in manufacturing?

Transparency in the manufacturing supply chain has become essential than ever. The concept is new, but its demand has been significantly increased in today’s global market. Manufacturers are developing blockchain implementations that have the potential to help them streamline operations, gain greater visibility into supply chains and track assets with unprecedented precision. Blockchain has the potential to revolutionize how manufacturers design, engineer, make and scale their products

The blockchain technology has disrupted the whole decentralized information technology paradigm and has marked the onset of a new era. The manufacturing companies can join the network of smart manufacturing supply chain and can save money and time while improving the efficiency of the business process.

The blockchain technology can give a new way of tracking a product’s journey, from the production line until it reaches the end consumer.

Manufacturing supply chain can be radically changed by implementing the blockchain with IoT having no middlemen involvement and can bring trust and security to the ecosystem.

How does the manufacturing industry work today?

Manufacturing is the process of adding value to raw materials by turning them into usable products for consumers. Once the product gets manufactured, it is distributed to the buyer.

The supply chain in the manufacturing system involves various entities including people, knowledge process, physical resources, financial contracts and transactions. Involvement of the different entities makes it hard to track the movements of the product within the chain.

The details are stored in multiple databases that can be accessed by limited entities. Also, the clients who place the orders can’t access the product’s manufacturing information in the supply chain.

By enabling product tracking ability at every stage with blockchain, the manufacturing supply chain can become smarter, secure and offer real-time visibility.

Interfaces involved in the blockchain system

• Native mobile app for the logistics company and merchants.
• Web portal for the supplier, manufacturer and QA team.

Stakeholders involved in the blockchain system

1. Merchants or Purchasing Company: Who places the order for product manufacturing
2. Manufacturing Company: Responsible for manufacturing the product
3. Suppliers: Who provide raw materials to manufacturers
4. Logistics Company: Who distributes the manufactured products from one place to another
5. Quality Assurance Team: Who checks the products’ quality and ensure that they meet the company’s standards

Step 1: Merchant places the manufacturing order

Step 2: The manufacturing company receives the order

Step 3: The suppliers receive the order

Step 4: Logistic service provider adds parcel details on the blockchain

Step 5: Order received by the manufacturer

Step 6: The merchant receives the order

Blockchain's industrial impact

From sourcing raw materials delivering the finished product, blockchain can increase transparency and trust at every stage of the industrial value chain. Pain points it could help address include:

• Supply-chain monitoring for greater transparency
• Materials provenance and counterfeit detection
• Engineering design for long-duration, high-complexity products
• Identity management
• Asset tracking
• Quality assurance
• Regulatory compliance

Blockchain-powered solutions can seamlessly aggregate all of this information, delivering significant value for industrial companies, and can also help unlock the full potential of other advanced technologies like augmented reality, IoT and 3D printing.

“Blockchain Manufacturing – Bringing trust from sourcing to distribution of goods”

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Created on Sep 30th 2019 01:59. Viewed 166 times.

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