The manufacturing industry has always been playing an essential role in the global market. As per the world bank, this sector accounts for approximately 17% of global GDP.
But, unfortunately, the manufacturing process has always suffered from inefficacy and quality control problems. Since there is no credible way to authenticate the product, several fake products flood the market.
Based on the International Trademark Association reports, the counterfeit goods market rises to billions per year.
Also, the manufacturing supply chains are disconnected and complex, so monitoring the manufacturing process at every step is not easy.
Meanwhile, nowadays customer expectations and demands for quality of the product are increasing that places pressure on the manufacturing industry to deliver products as per their needs and at a competitive price.
There are several challenges has been noticed in the manufacturing industry like counterfeit, poor inventory management, low-quality and lack of trust in production.
Bringing end-to-end traceability in the big manufacturing supply chains can benefit all the members involved in the supply chain.
Blockchain technology can be used to bring transformation to the manufacturing supply chain. Already, there are many industries that have used blockchain technology in their day to day business operations.
If you own a manufacturing company, then blockchain can benefit you in several ways such as:
- Improved inventory management process.
- Solving problems like theft, recalling and shipment of raw materials.
- Track and Trace product's authenticity
Let's understand how blockchain technology could completely revolutionize the manufacturing supply chain.
When any transaction occurs in the distributed ledger, they get automatically updated in the system, enabling every member involved in the system to view it and trace the goods flow between companies.
When a manufacturer manufactures the product that is to be sold to the purchasing company, they can add the manufacturing details like raw materials used, supplier's information, manufacturing date, expiry date, and quality standards followed to the blockchain.
Once added to the blockchain, the purchasing company can access the details and thus transparency increases in the manufacturing supply chain.
Products are distributed through IoT enabled vehicles, enabling manufacturers and purchasing companies to track their status in real-time.
IoT enabled vehicle has several types of sensors that gather information like temperature under which products are stored, real-time location and directly add such details to the blockchain.
The information stored by the logistics service provider can allow the purchasing company to confirm that the delivered products are same as dispatched by the manufacturer.
Payments can be made easier, quicker and secure with the blockchain technology.
From merchants to the manufacturer and suppliers to logistics companies, the details added on the blockchain are accessible to every stakeholder.
Since blockchain offers immutability, any data stored on the blockchain cannot be altered, deleted or manipulated by any member involved in the blockchain.
With deployed smart contracts in the blockchain solution, it is possible to eradicate the need for brokers by allowing purchasing companies to get connected directly with manufacturers.
Contact the reputed blockchain development company that can provide you with a robust solution for streamlining the manufacturing supply chain.