Use Cases: MFG Token Implementations for Streamlined Manufacturing Supply Chains
MFG Token integration use case applications in Manufacturing Supply Chains include: asset tokenization, advanced supplier incentive programs and supply chain decentralized finance innovation.
Blockchain Incentive Use Cases To Streamline Manufacturing Supply Chains
Supply Chain Incentive Programs
MFG Tokens® incentivize collaboration and speed across your supply chains and can be used to create custom rewards and compensate manufacturers for time and accuracy put into competitive tender bids
Custom MFG incentives can reward:
Supply Chain Tokenization
Smart MFG is leading the way adapting blockchain tokenization application for the Manufacturing industry and can already be used to tokenize parts on our partner SyncFab platform with additional partnerships coming. In the most abstract form, tokenization converts the value stored in tangible or intangible object into a token that usually can be utilized along a DLT/Blockchain system. In simple words, tokenization can turn any part in your supply chain into a digital token and enables the digital transfer, ownership, inventory and maintenance records of that part. Even though, similar pieces of software can be done the fact that a token runs on DLT/Blockchain differentiates it from other digitalization methods. Using a DLT/Blockchain to create a digital token enables the collaboration of different companies, which in turn allows the aggregation of otherwise fragmented information into one digital token. Moreover, all parties can update information seamlessly and verify their correctness. Partner with us to tokenize assets in your supply chain using MFG!
- By streamlining IT systems, sharing the infrastructure between all participants and without requiring the involvement of a central third party, transaction Costs are significantly reduced. The digitalization and automation of manual work along with the reduction of a part of reconcilIation / compliance work also enable to cut inefficiencIes.
- In addition, simple send / receive transaction settlement and clearance can be automated and allow fast transactions of down to seconds, where traditionally hours or days were required.
- Both options lead to an increase in efficiency of single transaction handling and allow an optimization of the market itself. Handling tokenized assets creates a more efficient market and optimizes the way assets and services can be exchanged.
- By allowing to fractionalize assets and to own and perform actions over only a portion of an asset, DLT / Blockchain enables greater liquidity. By cutting down transaction size barriers, a wider range of people can buy / transact in assets. In traditionally rather illiquid markets (e.g. supply chain factoring) this technology can help supply chain vendors to find more easily a counterpart to perform a transaction
- It also supports inclusive finance by opening up the market to a wider range of participants such as micro lenders. As no intermediary function would be required, fractionalized commodity participants now have access to financing opportunities whose participation used to be limited due to geographical and infrastructural reasons or due to high minimum financing thresholds. Now, the access to financial markets and a variety of new kinds of assets has been enabled regardless of the location of a commodity financing source and with much lower minimum capital requirements.
- Fractioning assets also introduces the notion of shared ownership where multiple people can buy together an asset and use it, which is key in a society where usage is more and more supplementing ownership.
- DLT / Blockchain introduces added transparency as related transactions occurring on a Blockchain infrastructure would be accessible to its participants (limited to the perimeter of a DLT / Blockchain, meaning that everyone can see it on public Blockchains while only authorized participants can have access on private Blockchains). This property is inherited by all tokens representing assets on Blockchain.
- For physical assets, this transparency allows for improved traceability and to provide trust over the provenance and origin, by allowing authorized users to review the whole history of activities performed over the asset. Ownership over a given asset, and the associated chain of ownership can therefore be easily identified.
- However, transparency is not systematically acceptable, and is even antagonistic with some use cases, for instance in the asset management industry or when competitors use the same infrastructure. In these cases, some privacy-enhancing technologies need to be used to avoid leaking any sensitive information to other participants in a network.
- In the past and current commercial environments, corporates obtain a significant amount of data for each asset, but it has always posed a significant challenge to map and inter-link data points such as inteIlectual properties, rights, licenses, or ownership to individual products. Thereby, mostly fragmented data points have been accessible. This data fragmentation makes it economically un-manageable and generates unnecessary and avoidable errors and correction efforts.
- As DLT / Blockchain introduces a single IT layer of trust for allowing business partners and competitors to share and pool together their data when anonymized, multiple actors of an ecosystem can interact with the same digital representation of an asset, driving efficiency through the value chain or industry and introducing new manners of collaboration.
- For instance, multiple initiatives have emerged in the trade finance industry over the last few years to enable companies to share information about assets that are being transferred around the world, automating and simplifying the process for high volume trading through smart contracts. Similarly Smart MFG Tech aims create partnerships conducive to building such ecosystem around use cases in supply chain decentralized finance.
Supply Chain DEFI Opportunities
(Forward Looking Use Case)
Decentralized Supply Chain Finance or Supply Chain DeFi is an exciting new development whereby traditional supply chain finance methods such as trade finance, factoring and discounting can be enhanced by blockchain improving liquidity for suppliers achieving greater efficiencies in the supply chain. This is a forward looking use case for which Smart MFG is currently exploring partnership implementation using existing tools.
Industry 4.0 Use Case Opportunities
Blockchain Applications Enablement Opportunities For Industry 4.0 Digital Transformation
How a Shared Additive Manufacturing Factory Could Benefit From Blockchain
Blockchain Use Cases
Q. On which of the following blockchain use cases is your organization or project working?