Blockchain opens up possibilities to expedite and streamline the everyday processes businesses run on. The beauty of blockchain for supply chain management, specifically, is that it not only simplifies the procurement or precision parts selling process, but it also makes the method safer, faster, and less expensive.

Manufacturing and Industry 4.0

According to J.P. Morgan, global manufacturing is off to a solid start this year, supported by increasing order volumes. Accelerated growth is being experienced across the globe with the U.S. composite growth index reaching a 34-month high. The time is right to reduce unnecessary costs and cumbersome processes to keep this trend going.

Industry 4.0 is the natural next phase for industrial organizations that have adopted increasingly automated manufacturing systems, more sophisticated IT, robotics, and the overall growth of connectivity in plants. The new generation of smart factory production lines will integrate constant streams of data from connected systems to better understand supply chains, inventory, production trends, quality, distribution, and more.

Deloitte described the potential of the smart factory as:

“Smart factories can operate within the four walls of the factory, but they can also connect to a global network of similar production systems, and even to the digital supply network more broadly.”

While Industry 4.0 can feel out of reach from some smaller manufacturers, this should not be cause for intimidation. By utilizing technologies such as blockchain, these manufacturers can save tremendous time and money to differentiate themselves in this changing world.

Best Bets for Blockchain to Simplify Supply Chain Management

Blockchain brings significant improvements to supply chain management for small to medium-sized manufacturers, precision parts suppliers, and small businesses innovators. It can help them:

• Cut procurement costs and production time by zeroing in directly on the right suppliers who can create the correct, high-quality parts
• Speed prototype evaluation to test and modify design before production at a more competitive cost
• Work with local, ISO 9001, and pre-certified precision parts suppliers and CNC machine shops to procure more in less time
• Eliminate supplier evaluation time, expedite orders and lower risk with suppliers automatically identified with needed technical expertise, location, machinery, design capability, and capacity
• Custom RFQs or automated blanket RFQs for ongoing part needs simplify part orders, avoid production delays, and help manage profitability
• Purchasers and parts manufacturers begin working together immediately on order fulfillment with instant review of qualifications and equipment and without wasting time on background and credit checks
• Increase parts and supplies quality control by comparing, reviewing, and approving qualified CNC machine shops and precision parts suppliers
• Get real-time insight and transparency into parts fabrication, production, and delivery
• Improve supply chain efficiency with automated RFQ management, instant notification of quotes, and only approval and payment
• Orders, designs, fabrication, and production of intellectual property is secure and provides protection not always afforded to smaller manufacturing firms or suppliers

Businesses aim to manufacture goods — whether end products, bespoke solutions or precision parts — of the highest quality, for the best price, with the greatest technical support, and according to agreed timelines. To succeed, they need to do this as cost-effectively as possible.

SyncFab Smart Manufacturing Blockchain provides the first, peer-to-peer blockchain network for smaller companies and manufacturers to compete and differentiate through improved supply chain and procurement processes.

Smart Manufacturing Blockchain is an easy-to-use, objective, and secure platform that delivers immediate trust among manufacturers and suppliers to do business. Learn more about how blockchain will transform your business, ahead of the competition.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.