Blockchain, commonly associated with cryptocurrencies, is a digital ledger technology which can be used to store and record transactions. Records across the network are stored and shared among the participating nodes which makes it difficult to falsify records thus making a blockchain more secure & transparent way to record transactions and service records. This capability of blockchain can be used outside of cryptocurrency trading
Blockchain technology has the potential to transform how manufacturing industry operates. Few technology giants offer specific blockchain solutions around, supply chain refinement and data management, services for prototypes and production in manufacturing applications etc. While there are only a few applications present, blockchain technology in Manufacturing is likely to attract more interest in the future with smart contracting. This will not only reduce production costs, increase operational efficiency but also incorporate trust in the ecosystem partners. And through better visibility, it enables manufacturers to delight their end customers.
How can blockchain optimize supply chain and generate better brand equity
Consider the example of an Auto OEM that sources various vehicle equipment such as Airbags, electronic controls and highly sensitive actuators which must work in tandem in case of critical crash situations. In a conventional supply chain model, only OEM has the visibility of different vendors which source these devices, and at the time of recall, the intimation requests are triggered through OEMs. However, with smart contracting
Combining Smart Contracting and Blockchain can help in the following ways:
Help small producers to monetize their products with least investments
Reduce inventory costs by enabling companies to procure or print parts just in time
Significantly decrease service time and increase customer service levels
Reduce manual reconciliation of financial data such as payment terms, receivables.