Manufacturing industry comprises a vast network of domains…Blockchain implementation can help progress all…
Manufacturing is the biggest industry in the global market. Including tie ups with various sectors and partners. It is the fastest growing and most significant industry, responsible for a high share in the global GDP. Thus transparency and security in this sector has become essential than ever.
Blockchain enabled solutions can enhance the capabilities of the manufacturing sector to a next level. With the help of smart techniques and robust amalgamation of advanced technologies like IoT , AI and Blokchain, a new revolution is waiting to happen altogether. Changing the process of how the conventional system works, it would bring out the most optimistic solutions to the challenges in this industry.
Some of the major Issues in Manufacturing sector in the conventional system
Right from bringing the resources from suppliers to their dispatch to consumers, the manufacturing and transport process takes a huge amount of time involvement as it involves different third party companies or various operations. This makes the processes slower.
Less market opportunities
In the conventional systems there are lesser opportunities for the vendors and the buyers. Due to low marketing budgets both cannot get the best deal and at times need to compensate with the one available.
Accurate tracking in the supply chain and manufacturing is never assured,so is the quality of product being manufactured. As the system is not automated , it’s hard to trace the processes and what goes in, in making the end product come into the market.
Risk of Counterfeit and Low grade products
Due to weak traceability on how and where the products are manufactured, it may involve a risk of counterfeit product or product parts. This causes a disappointing transparency in the system,which is always the right of the consumer.
High execution cost
Not just the production processes involve high cost but also the marketing and sales execution cost on a really higher side,in the conventional , non-automated systems.
Partners involved in Smart Contract for Manufacturing
A lot of people and companies are involved in the manufacturing industry processes. Blockchain allows it to surpass a few and bring in more transparency in the system, creating worthy opportunities to everyone involved. The transactions would be executed only when the authorized partners would permit it to happen, after certain conditions are met or norms are abided to.
The partners of smart contract of blockchain in manufacturing industry would involve, manufacturers, consumers, suppliers, storage and transport facilitators, sales and delivery, knowledge processes, authorized financial institutions,quality assurance teams. Blockchain makes a secure and transparent communication possible, amongst all the partners of smart contract, ultimately making the system more reliable.
How Blockchain can help overcome the issues and improvise the system
Supply chain monitoring
The automated IoT devices implemented in all the requisite processes,allow tracing the supply chain management easily, as it’s easier to trace real time locations.
Timestamp allows traceability
All the events are time stamped and hence there are very few or no chances of frauds occurring, making the system easier to trace and more reliable.
Elimination of Middlemen
Merchants and manufacturers can directly communicate in the blockchain based system. This eliminates the requirement of third party agencies and gradually the time and cost involved, reduces.
Smart Contract ensure quality
It becomes mandatory in the blockchain system, that the products are verified and only then processed ahead with the permission of requisite smart contract partners. This brings out the best grade product in the market.
Blockchain promises a better cash flow and automated quick payments to the authorized parties involved.This isn’t the case in conventional manual systems.
The overall cost reduces due to faster processes and less involvement of middlemen. The marketing and sales cost also gets impacted to a high extent, making the system better.