Blockchain is set to revolutionise how we work in many industries, the technology is advancing but also being applied to many sectors as blockchains are being constructed from the point of source.
Blockchain is a secure ledger system, which in effect will track a product from source, a new ledger entry will be built based on each trasaction that takes place with the product or as that product is used as a component to build finished goods.
For example, for car manufacturing a finished car that rolls off the production line could be logged as a ledger entry on the blockchain by the manufacturer, the car is then traded onto the dealership, this transaction between the manufacturer and dealership is also logged onto the blockchain ledger. Once the car is sold onto a consumer a new ledger is added to the blockchain to log this transfer of ownership, the transactions can be supported by the use of smart contracts so reducing the need to use 3rd party intermediateries. In reality the technology is already in place to enable blockchains to be established from the component stage of manufacture, so all SKU's used within the production process for the vehicle, specification sheets, technical information, installation and quality check reports can also follow the finished product off the production line.
The Next Generation Aerospace and Defence Procurement Group’s (Next Gen. ADPG) Industry 4.0 research report has explored the immense potential on offer to the Procurement industry in future years. The central premise of Industry 4.0 is that increasing interconnectivity generates a new abundance of data yielding innovative insights that, if utilised effectively, organisations can use as competitive differentiators.
The interconnectivity critical to achieving these benefits are brought about by the integration of a number of digital technologies. The purpose of this knowledge paper is to introduce Blockchain as just one of Industry 4.0’s digital technologies in the context of the aerospace and defence industry. We use case studies to demonstrate the benefits that could be realised within procurement organisations and industry alike, before presenting recommendations for advancement.
"Blockchain – ADPG Knowledge Paper"
The Next Generation Aerospace and Defence Procurement Group’s (Next Gen. ADPG) Industry 4.0 research report has explored the immense potential on offer to the Procurement industry in future years. The central premise of Industry 4.0 is that increasing interconnectivity generates a new abundance of data yielding innovative insights that, if utilised effectively, organisations can use as competitive differentiators.
The interconnectivity critical to achieving these benefits are brought about by the integration of a number of digital technologies. The purpose of this knowledge paper is to introduce Blockchain as just one of Industry 4.0’s digital technologies in the context of the aerospace and defence industry. We use case studies to demonstrate the benefits that could be realised within procurement organisations and industry alike, before presenting recommendations for advancement.
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There are potential benefits for blockchain technology to be used, as the ledger can not be altered or changed by individuals, a consumer will have full visibility of the product back to source. This will ensure that the product is "genuine" and will mitigate risk for all parties, from a supply chain perspective a full tier tracing system removes potential reputational risk for modern slavery being used in the supply chain during the manufacturing process of parts that may have been used to build the vehicle.
There are many aplications for blockchain usage and many benefits such as:
- Transparency - leading to risk mitigation
- Cost Saving
- Reduction in resource consuption and waste generation
- Time saving