TECHNOLOGY - BLOCKCHAIN
history is appended to the blockchain record . Such applications , which are still in the early development phase , increase the reliability of equipment , facilitates the monitoring of equipment health and attrition and creates auditable health assessments of the machinery .
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Rafi Billurcu , Partner , Manufacturing at Infosys Consulting , believes that in manufacturing , one use of blockchain that has seen success is the creation of smart contracts in global supply chains . “ Documents and contracts are the beating heart of any supply chain . Rather than storing these in silos across the legal , procurement and accounting departments of various companies , as in a traditional supply chain , in a blockchain , each of these elements can be stored on decentralised and highly-encrypted nodes in a ‘ smart contract ’.
“ Instead of existing on paper , smart contracts exist as a computer programme on a blockchain . The terms and conditions of a contract are unable to be changed , ensuring a level of trust that can ’ t be achieved by humans alone . What makes smart contracts truly ‘ smart ’ is their ability to not only streamline and automate entire processes but to perform human tasks such as monitoring inventory or negotiating prices with other parties . In all , smart contracts can automatically track supply chain levels , inventory levels and prices , replacing expensive , manual processes . This ultimately reduces cost and enables manufacturers to maximise profits – without compromising on credibility and trust .”
NOVEMBER 2020