As blockchain is now a frequent topic of discussion among supply chain circles, it is essential to consider how it could affect electronic device manufacturers. Marrying electronic device manufacturers and blockchain software vendors will have a profound impact on reducing the spread of counterfeit products and more. According to Maja Vujinovic of CoinDesk, 30% of manufacturers expect revenue to grow 10% within the next five years, and with faster growth, minor issues can quickly become major problems and stress points.
Decentralized Data Ensures Compliance and Universal Application of Electronic Devices
The power of blockchain lies in a decentralized data core. In other words, all supply chain partners can access and enter information within the blockchain allowing for immediate validation of information, as well as access and sharing of information throughout the supply chain. Since electronic device manufacturers have a high demand for rare earth minerals, including copper and gold, the use of blockchain could prove to be a valuable resource for accessing these materials, including those reclaimed through recycling processes. Furthermore, blockchain has additional implications for use in logistics. For example, blockchain can leverage ELD data to refine the estimated time of arrival for deliveries, reports Finextra. However, electronic device manufacturers could even work with blockchain-based solutions providers to connect data harvested from electronic devices to an overarching management platform, such as a home or commercial energy management system.
Electronic Device Manufacturers and Blockchain-Based Entities Can Work Together to Apply More Data
Applying data is essential to increase the productivity and efficiency of modern businesses, and the same concept will entice electronic device manufacturers and blockchain software vendors to work together. Since an integral part of blockchain is the ability to collect and log data, devices connected to the Internet of Things will naturally contribute to increased use of blockchain technology.
Blockchain Offers Better Risk Management
Another critical reason electronic device manufacturers will turn to blockchain technology for greater accountability lies in its ability to improve risk management, says ZDNet. More data amounts to greater use in big data analytics, which empowers informed decision-making processes. For risk management, this could amount to determining which risks are most likely to occur for a given location, typical response times to address needs, and much more.
Blockchain Reduces Fraud in Electronic Manufacturer Supply Chains
As explained by SupplyBloc Technology, blockchain can provide unmatched traceability of electronics and their raw materials. Ensuring resellers do not purchase counterfeit products is essential to keeping price points low for consumers and encouraging growth within the company through reduced fraud in the supply chain. Moreover, companies that fall victim to products created out of the black market effectively have a double loss, including the money paid for the product at wholesale and refunding money to consumers. The existence of counterfeits in the supply chain creates many difficulties in managing the finances of a business but applying blockchain within electronics manufacturing supply chains can effectively reduce these risks.
Better Transparency Streamlines Industrial Processes
Improved management of operations and manufacturing through blockchain will have additional benefits on employee productivity and efficiency. As blockchain guarantees the validity of information, it could have other implications in warehouse management systems (WMS) and logistics management. Streamlining industrial processes will effectively keep prices low for consumers by reducing the cost to produce each unit.
Electronic Device Manufacturers and Blockchain Systems Providers Could Achieve Internal and External Benefits
Electronic device manufacturers and blockchain vendors could leverage data-tracking capability, as well as collecting capacity, to improve internal and external conditions. In other words, blockchain could benefit the manufacturing process and empower devices with the ability to connect to blockchain-based systems. Integration into a blockchain-based system enables business leaders and supply chain managers, as well as consumers, through the immediate registration and validation of all supply chain activities, allowing for information and feedback returned to the manufacturer to refine production schedules and design further.
Maintain Compliance With Regulations, Contractual Responsibilities and More
As explained by Vujinovic, the ability to share information immediately with all supply chain partners will effectively increase compliance which is essential to high-cost industries, such as electronics. Maintaining compliance will also aid in cybersecurity and the prevention of cyber-attacks. Therefore, leveraging blockchain could be used to track cybersecurity updates, prevent unauthorized access, and much more.
Improve Your Manufacturing Processes by Considering Blockchain
Electronic device manufacturers have a vast opportunity to use blockchain to improve their operations. It all goes back to learning more about the benefits of blockchain and being ready for deployment when solutions become available. Learn more about our blockchain-based solution by requesting a demo from us today.