Let’s talk about Supply Chain … and Blockchain with Neurochain
This article isn’t directed at specialists, but rather towards neophytes trying to have a better understanding of what’s going on in the supply chain world and more importantly, to gain more knowledge on how this technique can change things.
In most companies, the MRP (Material Requirement Planning) remains the central planning system (for Supply Chain management). This planning model was created in the 50s, coded in the 60s and commercialized in the 70s — with very little development since. This system is perfectly well adapted to environments where demand is superior to the supply and where the industrial tool needs to be optimized because the MRP doesn’t meet the modern challenges it’s facing. The MRP is too rigid and needs to evolve and provide more responsiveness to the Supply Chain in order to meet society’s needs. Online shopping, rapidly evolving markets and increasingly demanding consumer expectations are pushing the industry to change.
Here comes the DDMRP (Demand Driven Material Requirement Planning)
The DDMRP process aims at reducing manufacturing cycles. It won’t rely on predictions (which are inaccurate sometimes) but rather on demand. The DDMRP is a new type of methodology which facilitates supplying, manufacturing and distribution execution by strategically implementing buffers instead of reserve stocks along the supply chain. To this day, the supply chain often still uses the old MRP method and forces products to be delivered at a precise point and in precise quantities at a given time. The idea behind the DDMRP is to position these zones, called buffer, to absorb any variations in our systems. With this new system, the supply chain finally gains the flexibility it needs to become more efficient. I am not going to go too much into details about the DDMRP. I just want to answer the following obvious question : “Why haven’t we implemented this kind of flexibility before ?”
Plainly put, it was very complicated to introduce this kind of fluidity to the data. Companies work with data in silos. Factory-related data remains within the factory, and the same goes for logistics or transportation data. A tool capable of replacing obsolete systems with these new concepts and methodologies is still missing. As far as we’re concerned, when we refer to this type of ecosystem, we automatically think of Blockchain, but more specifically — our Blockchain. We had the industrial world in mind when we conceived NeuroChain and we are hoping to provide the tool needed to finally revolutionize business processes. Blockchain, BigData, IOT and Machine Learning are the bricks which support the NeuroChain. Working as a data-sharing ecosystem, Blockchain is well-adapted to these type of demands. This ecosystem gets everyone to agree because it is built around a consensus-based algorithm which shares information equally.
Methodology and Technology
Thanks to the IOT, we are now able of simplify the information gathering process in factories. It is efficient and is democratizing in the industrial sector. Nothing is more effective than an IOT to share high volume, up-to-date data.
We are capable of monitoring every position in the factory with an IOT and Blockchain.
We are also able to follow a product in the factory with the tracking capabilities of the Blockchain. We can also follow a product once it has left the factory.
All of this is made possible by our IOT, BlockChain and BigData ecosystem.
Bigdata was missing an ally to fully exploit the industry’s data. The industry’s ramified ecosystem was still resisting the centralization process sparked by Bigdata. Thinking outside the box has allowed us to find a solution. We see Bigdata stocking points as data hives and Blockchain as a unifying force enabling us to collect and share data with every party evolved. We have also found the perfect tool to bring out all the potential of the data. The solution is to connect Neurochain with a group of Bigdata collecting points. The IOT feeds the stocking points while Blockchain references and brings data together.
Combining these technologies will allow us to build a solid technical foundation for new methodologies such as the DDMRP, as mentioned earlier in the article.
This Methodology/Technology duo will truly provide added value to the industry. Everything is going to change now…
