Blockchain in Manufacturing Industry: Use Cases, Benefits

Table of Content

What is Blockchain?

Blockchain is a decentralized ledger formed by connecting multiple blocks into a chain where each block stores data in multiple nodes. Blockchain was introduced for payment around the globe without the intermediary but as of now the blockchain is transforming digital platforms and is being implemented into every industry to streamline the process.

Blockchain solutions are being actively adopted into industries like banking, insurance, real estate, healthcare, supply chain & logistics, manufacturing, and more. The usage of blockchain record each and every work in the process which helps them analyze the process and the data stored are more secure than ever before because of its decentralized nature.

Blockchain in Manufacturing

Blockchain in the manufacturing sector will end up with great progress in business growth as blockchain can be implemented at various points. The manufacturing industry needs to handle many things from raw material to delivering the product at any corner of the world. With the present infrastructure, companies are putting out much more effort and as well as investing more to streamline and manage these flows.

But with the implementation of blockchain, all these processes can be done within a single ecosystem with just a minimal investment than the present one. Blockchain streamlines the whole process from supply chain management to transportation and delivering it to the right place. When it comes to the manufacturing industry they have to work on the process before manufacturing and also after manufacturing the product. The industry needs to track down its raw materials, its manufacturing process, and manage its supply chain in transporting and delivering the product. Blockchain would replace all the existing models and make it easy in all these places.

Benefits of Blockchain in Manufacturing

Every industry is benefited with respect to their needs by implementing blockchain, in that way, the manufacturing industry also gets more benefits when it updates its blockchain solutions. Here are a few benefits listed below how blockchain favors manufacturing

Traceability

Bringing in blockchain helps in tracking down the raw materials and helps in providing the data on whether the raw materials are genuine. It provides end-to-end data to the manufacturers which is potential for their business analysis.

Enhanced Inventory Management

The process is automated and provides the exact data of each and every product eliminating the human errors caused before implementing blockchain solutions which end up eliminating the manual tracking process.

Optimized Data Security

Blockchain is named for its security and trust so going on with blockchain solutions will provide a high-level data security to your data eliminating any kind of security threats. The collected data can be viewed and analyzed anytime for as long as the chain exists.

Automated Payments

Integrating blockchain solutions into your payment system will automate the process and pays the standing bills on time without the need for any third person with the help of its pre-programmed smart contracts.

Reduction of Overhead Costs

The implementation of blockchain reduces the overall cost in various ways as it brings most of the process into a single ecosystem and the blockchain makes all the processes automated with the pre-programmed smart contract which cuts off most of the cost.

Not just the above mentioned are the benefits for the manufacturing sector these are just the main points and there are multiple benefits which depend on where blockchain is incorporated.

Blockchain Use Cases in Manufacturing

Blockchain is mostly integrated or replaced in the below-listed categories to ease the process and improve their business growth. And based on the manufacturing unit and requirement the usage of blockchain may differ

Supply Chain

When it comes to the supply chain there are many things to be noted down from the transportation of raw materials to customer feedback in regard to the manufacturing sector. Where the existing model gets all the data in various ways and is processed separately. Replacing the existing model with blockchain technology will streamline the process and let the organization analyze the business growth concerning their process from analyzing and purchasing the raw material to customer feedback on that specific product. Blockchain simplifies a huge process in a single ecosystem.

Maintenance

In the manufacturing industry, most companies will be employed with lots of machines and there is maintenance and check on with every machine frequently. To make this process move on smoothly blockchain can be employed which notifies the concerned person at the right time to check out the selected machines automatically. Connecting its with the sensors and IoT will make the whole process move on more efficiently enabling the call for check at time of any kind of faults.

Quality Checks

Blockchain brings in the quality check of every product that is in the process of development and it helps in taking every product through every quality check without any error. Also if there is a negative view on it from the customer, blockchain lets the person in charge know about the customer feedback and lets them work and improve it based on it once immediately which helps the growth and reputation of the organization.

Secured Payments

The payments are automated and the blockchain pays off every blockchain at ease without the need of any third person in action. As the smart contracts take over the charge of it, not a single bill outstands the date and helps in maintaining the cash flow within the company and it analyzes the future needs and pays out based on it. As blockchain is named for its security payments are carried out in a secure way which prevents any kind of security threats.

Warranty Management

The claim of Warranty has caused many manufacturing industries to lose millions because of the fraud behind it to make it liable, blockchain can be employed in it. Empowering blockchain will let the system find out the exact serial number that is capable of claiming warranty and also whether the serial numbered product is billed for that person and as well it analyzes more about the product and warranty status which will be carried out automatically. All these are done with pre-determined terms and conditions programmed in the smart contract.

Future of Blockchain in the Manufacturing Sector

Not just the manufacturing sector but in whole most industries will be changing their infrastructure in the coming years because of blockchain technology. But how does blockchain change the manufacturing sector in the future?

Coming to the manufacturing sector, blockchain will automate every progress in the area under a secured decentralized network. The system connects the whole process from its initial stage of investment to the final step of handing over the product to the customer and also the customer feedback which will be a precious one for the manufacturing industry. The existing model in the manufacturing sector will be completely replaced which involves not just collecting the data but also acting towards the data it gets. On the whole, the system is processed inside a single automated ecosystem.

What does Maticz's Blockchain Solution do with the Manufacturing Industry?

Maticz is a pioneer in blockchain technology which is providing multiple blockchain solutions to startups to enterprises around the globe based on their requirements. Maticz’s blockchain solution helps your business move in a positive phase where our solutions secure your business process and automate your business operation by implementing blockchain solutions.

When it comes to the manufacturing sector as a team we work on providing secured automation solutions built over the blockchain technology which helps the industry to lower their investment costs and improve their output. In simple terms, the production cost for a single unit will be lower by implementing blockchain into your existing business framework and this is the point where Maticz works on.

End Thoughts

Manufacturing industries are losing millions on a whole to decrease these numbers and to fix these pitfalls where they lose these amounts, blockchain will be the solution. Get yourself connected with the certified blockchain developers of Maticz and look out to integrate the next-gen solutions into your business.

Maticz is a leading Software development company that works with multiple persons around the globe in different scenarios for different requirements which made the professionals of Maticz work in any circumstance and build out unique products and provide the best services to our clients at any time.