Manufacturers and producers are working on Blockchain solutions that might improve operational efficiency, give them more insight into their supply chains, and enable them to track assets with unprecedented accuracy. As a result, Blockchain can completely change how manufacturers plan, engineer, produce and scale their products. It’s also changing how businesses engage because of its ability to promote trust among competitors who must collaborate inside shared ecosystems.
Let’s begin our party with a short introduction to Blockchain technology.
What is Blockchain?
As the name shows, a Blockchain is a chain of blocks. However, instead of a physical chain, the block is digital data that is kept in a public database (the chain). A fresh block is adjoined to the Blockchain whenever it incorporates new data.
Blockchain-based solutions can easily combine all the data to benefit industrial businesses and assist other cutting-edge technologies to reach their full potential, such as Augmented Reality (AR), the Internet of Things (IoT), and 3D printing.
Let’s now get into what Blockchain has to offer to the industrial manufacturing industry.
Blockchain in industrial manufacturing
Blockchain has a significant amount of potential in the industrial manufacturing industry. Blockchain can enable a whole new manufacturing business model by enhancing visibility across all process elements, from vendors, strategic sourcing, procurement, and supplier evaluation to shop floor operations, which include machine-level monitoring and servicing. All industrial organizations are built on supply chains, and most can benefit from Blockchain’s distributed ledger structure and block-based method of aggregating value-exchange transactions to increase efficiency.
Manufacturers can meet delivery dates better, improve product quality, and ultimately sell more products by expanding supplier order accuracy, quality of products, and track-and-traceability.
Impact of Blockchain on the industrial manufacturing industry
- Blockchain for lot tracking
For manufacturers, supply chain transparency is essential. Food producers are obligated to follow the “one up, one back” principle, tracking the origin and destination of the food. Additionally, automakers must follow their suppliers all the way to the final consumer.
Because Blockchain technology provides each component with a unique identification, producers can quickly spot problems and determine what caused them. Blockchain, for instance, can track shipping details, storage temperatures, and expiration dates in the food business. The food company could withdraw the contaminated food from the one lorry where the refrigeration unit malfunctioned rather than having to recall all of its products. Before the product reaches customers, it could be easily recalled.
- Blockchain for preventive maintenance
Manufacturers today who care about optimizing uptime are implementing Internet of Things (IoT) and business analytics solutions to find maintenance issues before equipment goes down. Blockchain will effectively deliver the appropriate components and people to the correct location at the right time by adding an additional degree of responsibility and visibility. Furthermore, once the maintenance work order has been issued securely to several service providers, the best service provider is chosen automatically based on location, skill level, and availability.
- Blockchain for product lifecycle management
Manufacturers frequently lose track of where their products are being used by end users when they sell their goods through integrators or distributors. Blockchain technology holds forth the prospect of better product lifecycle management by allowing Original Equipment Manufacturers (OEMs) to notify end users about the product expiry dates and extend service agreements.
- Blockchain for regulatory compliance
Hazardous chemicals, pharmaceuticals, food producers, and other industries with a highly-regulated manufacturing environment can get real-time visibility.
- Blockchain to defend against counterfeit goods
Blockchain is being heavily used to verify the integrity of products. Each product can be authenticated at every stage of production and sale by being registered on the Blockchain registry with a distinct ID and essential characteristics. This will help the firm recoup lost income and maintain its reputation.
- Blockchain for supply chain finance
Blockchain technology could be employed to control the movement of items and the associated payments. It expedites transactions by eliminating the need for brokers and banks.
Bottom line: What does the future hold?
Manufacturing has long been seen as a tradition-bound sector of the economy. However, the Factory of the Future is expected to look substantially different due to technologies like Blockchain, AI, and Machine Learning (ML) playing a more significant role. As blockchain technology develops, it will help manufacturers overcome barriers that have prevented the widespread adoption of other cutting-edge technologies and creative business models.
Consequently, more effective manufacturing operations will be developed and adopted as the new standard in the sector. These operations demand data exchange and teamwork across intricate networks of businesses and machinery.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.