HOW BLOCKCHAIN CAN TRANSFORM THE MANUFACTURING INDUSTRY?
Blockchain is a public electronic ledger built around a P2P system that can be shared among the disparate users, which helps create an unchangeable record of transactions that are stamped each time and linked with the previous one. Blockchain also makes it impossible or difficult to hack, change, and cheat the system.
Blockchain is majorly associated with cryptocurrencies like Bitcoin, and it is a digital ledger technology that is commonly used to record and store transactions. Blockchain is also referred to as a digital ledger.
The demand for Blockchain in the manufacturing supply chain has been increased a lot and in other industries. Blockchain can create a revolution in all sectors. Some of the industries which have the immense benefits from it are –
- Banking and finance
- Healthcare
- Real estate
- Security
- Manufacturing industries
Role of Blockchain in the manufacturing industry
While talking about modern ways of manufacturing industries, the supply chain can run across several organizations. This makes the system difficult to find ways for increasing efficiency and for chasing events. But when it comes to Blockchain, it can help to make a secure and smarter supply chain moreover you can track the journey of the product. For instance, if you are looking for material delivery, you can easily track the material. Everything is recorded in Blockchain as a block.
There are several benefits of Blockchain technology, and here are some of the advantages which work in the real scenario-
Amplify Inventory Management
Blockchain provides permanent data for each transaction that takes place in the process of the supply chain. It also helps you to connect with the value chain, be it a production site, suppliers, and distribution centers. The records are easily accessible for those who are connected with the network. Everyone in the network has the information; therefore, no confusion occurs in the supply chain.
Upgraded data security
Information such as contact details and invoices which are exchanged in the supply chain process is highly confidential. Sharing these details by the traditional methods can be highly risky can anyone can hack this information efficiently. Instead, blockchains use these traditional methods to keep the information more secure in cryptography techniques. You can choose the applications of Blockchain in manufacturing to avoid the cyber attack.
Better Transparency And Traceability
Blockchain technology in manufacturing or supply chain can offer all the information related to the transaction. For example, how the products are manufactured, from where they are shipped, how data are managed, etc. if you have the permanent data, then it can be shared with the supply chain network easily. You only need to have the tracking tracing abilities.
Automatic Payment Process
Blockchain in industrial automation helps in transferring the funds to any part of the world. Now you don’t have to stick to the traditional methods of banking. Money transfers can be direct between the payee and payer. The payment system throughout the Blockchain technology is secured, and it can be done quickly. You don’t have to wait for the payments.
Improved Customer Engagement
Blockchain is much stronger than typical technology. You can analyze the data to create predictions and forecasts that can help you solve issues in your supply chain management. Moreover, analytical tools can also help to boost customer satisfaction. Blockchain can be used to find ways to develop your delivery timelines. To a certain extent, customers can also access Blockchain data.
Blockchain is suitable for every industry which has a high value, risk and is highly regulated. There are lists of benefits that help prevent tampering and counterfeiting the data, and it also offers preventive maintenance by identifying where, when, and how the failure occurs. Smart Chain can help you with this
