The role played by blockchain technology in global manufacturing has grown significantly in the last couple of years. Manufacturers are benefiting from increased visibility across different processes.
These include processes such as shop operations, supplier quality, procurement, strategic sourcing, and supplier management, among others. Blockchain technology has opened a new business model for manufacturers across the globe.
Manufacturing businesses depend largely on supply chains. They can use blockchain technology to improve efficiency and aggregate all transactions. Here are a few areas where blockchain technology is playing a role in global manufacturing;
Improving Manufacturing Plants’ Efficiencies
Blockchain technology is playing a huge role in improving production efficiency. There are many inefficacy issues associated with manufacturing plants. Most of them do not know how to handle these issues without affecting the quality of their products.
However, smart manufacturing plants are using blockchain technology to maintain a balance between these issues and the quality of their products. This means that they will still end up producing high-quality products while at the same time handling inefficacy issues.
Blockchain helps manufacturers eliminate chaotic processes and mismanagement in their plants. In addition, it eliminates corrupt data and human errors, something that is vital in increasing revenue generation. This increases efficiency.
Payment Processing
The cryptocurrency market has changed a lot in the last couple of years. Even though fiat currencies are still the most popular modes of payment in use today, some manufacturing plants have embraced cryptocurrencies.
With these, both merchants and consumers benefit from greater control, privacy, security, low fees, and simplicity. In addition, advancements in technology have made sure that cryptocurrencies can be accessed easily.
For instance, it is now possible to buy cryptocurrencies on SoFi along with a torrent of other mainstream financial services and platforms, making blockchain technology increasingly ubiquitous, and free from bureaucratic restrictions.
Reduces System Failures
Just like any other industry, the manufacturing industry also suffers from data breaches. These breaches affect manufacturers differently. In addition, they are using networking systems for industrial automation.
In case of a network breach, cybercriminals can gain access to private data. This might end up affecting operations, reducing revenue, and giving competitors the upper hand. Fortunately, blockchain technology has come to the rescue of manufacturers.
It offers a firewall network to protect manufacturers from cyber criminals. Using this technology, manufacturers can prevent criminals from gaining access to their systems. They can also get alerts in case someone tries to penetrate their networks. This way, manufacturers can protect sensitive information from exposure.
Real-Time Maintenance Tracking
One of the major causes of downtimes in manufacturing plants is caused by maintenance tracking. Unfortunately, most manufacturers are not able to calculate this cost. This leads to a lot of inefficiencies in the supply chain.
In addition, most manufacturing plants are still using their old equipment. This is one of the reasons for increased downtime efficiency. Fortunately, manufacturers can rely on blockchain technology for real-time maintenance tracking.
They can also automate the entire process to ensure that downtimes are reduced, if not eliminated. For instance, using blockchain technology, manufacturers can determine when downtime is likely going to take place and maintain their systems in advance.
Detection of Counterfeit Products
Blockchain technology is playing a vital role in detecting counterfeit products in the manufacturing industry. This is done together with IoT devices. Counterfeit products are everywhere, and every industry is bleeding from them.
For instance, counterfeiting was projected to exceed $3 trillion in 2022. In addition, end consumers lose money and get products that cannot do what they are supposed to do.
Using both blockchain technology and IoT devices, manufacturers can track all their products from the time they are produced to the time they get to consumers. This eliminates any third parties who can plant other products in the middle of the supply chain.
Auditing of Supply Chain
Auditing the supply chain to increase transparency is one of the biggest roles played by blockchain technology in global manufacturing. Research has indicated that more than 75% of manufacturers are worried about auditing their supply chain processes.
The waste and issues that emanate from this increase every year. They, therefore, need a solution that can help them audit their supply chains effectively. This is where blockchain technology comes in.
Blockchain technology provides manufacturers with real-time auditing of all processes and products. It also ensures that data used for decision-making is not corrupted in any way. They can also use this technology to streamline their lines of production.
The manufacturing industry handles different issues, most of which can affect their operations. Fortunately, blockchain technology is playing a major role in streamlining operations.
