Blockchain technology can be described as a decentralized database for the management of any kind of transaction, where there are many blocks containing different information related to that operation and verified through a complex system of cryptography by all the participants to the network.
The information is IMMUTABLE and cannot be modified once approved, making it one of the most secure systems for your information. Blockchain can be applied to manufacturing supply chains because it may connect all different actors involved, allowing them to reduce the operational costs deriving from the manual activities of selection and information management across the complex chain.
One of the most significant news from the blockchain is the use of smart contracts, that is IT codes that specify all the features required by the manufacturer and automatically executed once these features are fulfilled by the supplier. In this way the supply chain management is speed up because both parties can easily search for the right contract within the blockchain, with no need of an order issue.
In the textile, sector blockchain is important to:
- Reduce the costs of external quality certifications
- Verify the origin of each product and protect the “Made in”
- Create sustainable products
- Improve the brand image
Increased operational efficiency with a single ledger shared among the partners
Simpler management of transactions with the Smart Contracts
Supply chain real-time visibility to quick detect flawed products
Use of IoT data coming from smart devices to make informed decisions
Reduction of external inspections for certifications