How ERP and Blockchain Tech can work together

An Enterprise Resource Planning (ERP) system is a software used by organizations to manage their business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.

Blockchain is a collection (chain) of computers working on a single project. It automatically tracks, trades, and processes data through various servers. For businesses, blockchain technology is used to record and track assets throughout the supply chain. An asset could be anything physical or digital that crosses your operation — data, products, inventory, warehouse space, or intellectual property.

Moreover, the capabilities of blockchain to store immutable blocks of data may become a secure, transparent, and reliable source to register relevant information of a business. These records may include business data such as organizational structure, invoices, supply chain traceability, and accounting journal entries.

Improve the Automation
Blockchain is a proven method in improving automation. Different parts of your digital footprint can be optimized by implementing blockchain technology. What parts of your operation can be automated? Blockchain helps with processes like:

Service can integrate:

  • Payment processing
  • Invoicing
  • Scheduling maintenance
  • Tracking and reporting delays
  • Inventory monitoring
  • Supply chain progression
  • Communicating with partners and customers
  • This is just the tip of the iceberg. Internal data can be automatically parsed, sorted, and compiled in ERP, and securely distributed using blockchain technology.

Help with Security
Securely sharing data within your operation and externally has always been a problem. Cyber attackers are always on the prowl, looking for a way to exploit your business. By integrating blockchain, you can securely distribute information with a higher level of accountability and lower risk of a hack.

Monitor Supply Chain
Supply chain management is an ongoing concern for most manufacturers. With blockchain technology, you can monitor the progress of assets moving through supply chains, with transparency and accountability. Doing this will help limit the number of issues you may encounter during normal operations. If there’s a potential problem in the supply chain, you’ll find out sooner so you can react more quickly.

Support Quality Checks
There are a few ways that your quality can improve thanks to blockchain technology. If you have measurable metrics for your product inputs, then relevant data can be generated and compiled quickly with blockchain. The data will move alongside the materials by using tracking data. This ensures you can track the source of defects, track completed products during shipping, and improve the overall quality of your products.

Manage Your Partners and Suppliers
Blockchain also helps with managing your working relationships with partners and suppliers. You can use the increased visibility and accountability in evaluating new suppliers, improving your due diligence. Shipping delays from partners and suppliers are flagged sooner so you can remedy the situation. For larger operations and complex supply chains, supply chain management can be optimized.

Expedite the Process
The level of automation and insight that comes with integrated ERP and blockchain technology will help you to expedite the entire manufacturing process with enhanced levels of accountability and security. Pinpoint and mitigate problems more quickly and speed up your supply chain times.

Once blockchain is integrated into an organization’s ERP system, it enables the optimization of its operations, internal data control, and business processes such as intercompany transactions. For instance, smart contracts can help automatically verify a transaction between companies when it complies with the requirements of the contract.

Blockchain technology in manufacturing is a promising concept that’s gaining increased attention and adoption. Key takeaway is that blockchain can add a layer of reporting and accountability in the manufacturing supply chain that may streamline logistics for manufacturers large or small.

YFOS Cloud ERP can help you streamline your operations and create a highly integrated organization. However, you need to carefully plan each step of ERP implementation to increase the chances of success and eventually generate a higher ROI.

If you need any advice or quotation please contact with us:

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