Based on a recent report, it is estimated that U.S companies will be spending approximately $500 billion USD toward smart technologies like IIoT. What is IIoT? IIoT ( Industrial Internet of Things) is nothing but the application of IoT technology to the manufacturing industry. It is also called Industrial Internet or Industry 4.0. You might have already heard a lot about IoT (Internet of Things) technology. IoT is basically a network of all intelligent things like computers, mobile phones, electronic devices which can collect and share a large volume of data. A simple example of IoT is adjusting the temperature/switching the air conditioner in your house with your mobile phone.
Do you know what are the main challenges in the manufacturing industry? Check out the points below:
Both Small/medium scale and large companies don’t communicate with the manufacturers directly to get the source parts needed for them. They heavily rely on external brokers or agents to search and find the list of manufacturers who will supply the necessary parts for them. So, they need to pay a commission fee or procurement salary for these brokers. For large companies, paying such fees will not be a great burden as they will be allocating funds separately for this purpose. But, for small and medium scale companies, it will increase the budget and decrease the profit margin.
Finding the right supplier is always a great obstacle for the companies. Purchasers want to make sure that the manufacturers will deliver the products on time without any delay. Manufacturers need an assurance from the purchasers that they will receive the payments on time without any delay. If the contract between the purchaser and manufacturer is carried out for the first time, then there will not be any kind of mutual trust between the parties which will make the process lengthy and time-consuming.
To overcome the above limitations and to improve the speed of the overall supply chain process, the company SyncFab (based in the USA) is developing a blockchain based platform which will connect the buyers directly to the manufacturers eliminating the intermediate brokers or agents. How will this platform be beneficial for the buyers and manufacturers? See below:
- Manufacturers can eliminate all the costs related to marketing and advertising for their products as they can communicate directly with the buyers.
- As the buyers can get quotes directly from the manufacturers, small and medium scale companies can increase their revenue as they don’t need to pay any commission fee for the intermediaries.
Sounds Interesting? Check out the official whitepaper of the company https://blockchain.syncfab.com/SyncFab_MFG_WP.pdf to read in detail about the technology behind the platform.
SyncFab was created in the year 2013 and has already developed a supply chain management/procurement tool for tracking and organizing the local parts. So, it is not a new player in the manufacturing industry. SyncFab will be using the blockchain based smart contracts for getting the requirements from the purchasers and linking them to the appropriate manufacturers. The platform will be stimulate the purchasers and manufacturers by means of MFG tokens which will be used as the payment gateway of SyncFab platform. To read more information about the incentive-based system and the benefits of MFG tokens, check out the following:
SyncFab Website
SyncFab Whitepaper
SyncFab ANN Thread
SyncFab Bounty Thread
SyncFab Telegram
Thank you for your time,
Jack Andrew