Blockchain in Manufacturing 

Manufacturing supply chains are sophisticated and complex with a number of distinctions that can make transparency and accountability quite challenging — especially when it comes to the logistics of building and shipping new equipment and service parts. Blockchain implementations that have the potential to help manufacturers streamline operations, gain greater visibility into supply chains and track assets with unparalleled precision. 

Blockchain implementation examples in Manufacturing

  • Traceability of diamonds: Tracking diamonds from source-to-seller, prevent counterfeiting and ‘blood diamonds’, and ensures valid quality certificates. 
  • Minerals and Mines: Digitization of transactions, faster compliance, easier cross-border trade, blocking of conflict minerals.
  • SME Lending: Lending as invoice financing while knowing quality and traceability of the product in question reduces rate of default.
  • Product safety: Tracking origins, safety certificates and changes made to the item at every touch point in the supply chain.
  • Product lifecycle: Managing product warranties, certificate tracking for Maintenance and Repair Overhauls.
  • Asset management: Managing assets on a plant, with trigger events for older products.
  • Digital marketplaces: Creating truly peer-to-peer marketplaces for sensitive goods with blockchain-based quality and tracking certification.

Blockchain for Food Supply Chain

Food manufacturing is one of the most essential industries in the world today. The typical problems in the food industry include wastage, labor-dependent record keeping, improper storage, mislabeling and various other kinds of frauds that compromise food safety and quality. All these faults can be efficiently repaired using Blockchain.

Blockchain technology can be used to digitize and bring complete visibility across the entire Food supply chain. Here’s how-

Blockchain implementation examples in Manufacturing

Data at every point in the supply chain is captured (from production to sales), timestamped, validated and made available for supply chain intermediaries and businesses

-This may include data obtained by physically identifying and auditing fish stocks/shipments through RFID tags

-Devices can also be used on fishing vessels to capture details of areas fished in, time, and other details

-Once processed and packed, the shipment can further be made more traceable by attaching QR codes that can track the rest of the journey of the shipment until final point of sale

Smart Contracts can be used to automate payments based on data validity. Stakeholders can be rewarded for following best practices further improving the ecosystem. 

Above are the workflows with blockchain involved in the Seafood industry and the pharma industry. Blockchain is a natural implementor for electronic health records. The characteristic security and transparency of the blockchain could provide significant benefits to the drug supply chain.

Blockchain and Procurement

Procurement, being one of the most important stages in the supply chain of any industry, is rife with challenges, which include risk management, long process cycles, inaccurate data, reputation and brand image, keeping track of vendor performance. Here’s how Blockchain Technology can help in Procurement- 

  • Blockchain smart contracts: Legal contracts with different clauses, vendor to client contracts, PO contracts, all can be put on smart contracts and hence saving costs and time.
  • Purchase Order structuring: Order validation, invoice processing, reconciliation from request to receipt can be done over a blockchain.
  • Real time settlement: Settling contracts, payments, goods receivables vs invoice and payment tracking.
  • Integration with ERPs: These solutions aren’t siloed, but sit on top of an ERP solution that then communicates with libraries written on the blockchain smart contracts.
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