Since the manufacturing industry is now moving to a digital supply chain from the physical network, latest technologies like Computer Numerical Control and Additive Manufacturing are altering how companies produce, distribute and maintain products.
Many of the manufacturing companies are collaborating with a blockchain development company to migrate to blockchain and experience its benefits in their business functionalities.
But now digital manufacturing is shifting towards the decentralized manufacturing models where parts are produced at the place and time of need.
In a decentralized model, engineering and design data go through the hands of many stakeholders, from suppliers to subcontractors. That is the reason why ensuring the integrity and security of Intellectual Property is crucial to eliminate counterfeits, frauds or maliciously modified and uncertified parts.
Here are some of the possible use cases of Blockchain in Manufacturing Industry:
The blockchain can be considered as a digital vault to protect value by providing a trusted and secure registry of intellectual property with minimal or no cost that is associated with a time-consuming IP registration process. If a manufacturing company utilizes the potential of the blockchain for a patent with rules precisely defined in the smart contracts, it can bring a transformation in the entire IP registration process.
Due to the transparency feature of the blockchain, agency, coordination and legal cost can be reduced dramatically.
Supply Chain is another area where blockchain can create a massive opportunity by opening up new ways to track the contracts, flow of materials and payments when goods are transported from one place to another.
The blockchain is expected to enable real-time visibility of what materials have reached where, where they originated from and who handled them at what time. This could help the manufacturing organizations to drive efficiencies while reducing the frauds.
Supply Chain Financing:
Supply Chain Financing is another use case of blockchain in manufacturing as the invoice settlement can be automated for the network members without the need for a third party.
It reduces individual transaction times to a few minutes and minimizes the delays across the supply chain.
Identify3D is a blockchain-based application that offers design protection, secure traceability and quality assurance for digital manufacturing. It will create the backbone for a connected digital supply chain for hardware and software providers.
The innovation to build a decentralized application reduces the need for a centralized and proprietary database and the cryptographically-secured shared ledger holds the entire recorded history of transactions.
Here’s how Blockchain could have an impact on different stakeholders:
Shippers: A blockchain-based solution can help lower processing costs, eliminate delays due to errors and reduce trade documentation and a lot of paperwork.
Customs Authorities: The solution can enable customs authorities to get real-time visibility and enhance the information available for targeting and risk analysis. It may significantly improve the safety and security and bring efficiency in border inspection clearance processes.
Blockchain technology is all set to transform the digital manufacturing industry by bringing transparency, auditability, immutability and traceability across all the stages of manufacturing.
If you have planned to enhance the manufacturing business with blockchain, consult the top blockchain development company and learn more about the implementation of decentralization in manufacturing.