One of the big promises of blockchain is that it can remove the middleman from the equation, and leave more money on the table for the actual parties involved. From its original use case to enable peer-to-peer money transfers without intermediaries, to directly connecting service providers to customers – we’ve seen it all. Or at least that’s what we thought.
How about manufacturing? Can decentralized computing be used to improve how companies are buying stuff from manufacturers?
At least one company (we are aware off) thinks that is possible and is putting its IT expertise behind a project that is billed as the “way forward into the Industrial Revolution 4.0.”
Helping smaller manufacturers thrive…
The name of that company is SyncFab, and it’s been in the business for 5 years; so it’s not a startup born, like, yesterday.
Said company is working with the US Department of Energy’s Clean Energy Smart Manufacturing Innovation Initiative as well as the cities of San Leandro, San Francisco and Oakland, to help smaller manufacturers who struggle to gain free exposure on search engines get new customers. On the other hand, the same platform enables purchasers looking for precision parts find a local provider, which tends to be cheaper than the one on the other side of the country.
In addition, both parties get to benefit from a more streamlined procurement process that effectively eliminates brokers, agents and inefficient software. And as an added bonus, we get a more eco-friendly process that minimizes transportation-induced carbon footprint.
The manufacturing token
Typically for a blockchain-based project, this Smart Manufacturing Blockchain also has its own token / cryptocurrency. Marked as MFG, it is used for payments on the platform as well as a reward mechanism for manufacturers who participate in auctions quickly, offer competitive rates and maintain production records on the blockchain.
With a token of its own, SyncFab ensures for quick payments, which is something smaller manufacturers appreciate the most. Also, it rewards them just for being active on the platform, so they could focus on what they do best: production.
How it works?
On the Smart Manufacturing Blockchain, purchasers are those that initiate / start an action, providing all the details required, including budget with or without a “tolerance amount,” along with an additional guidance. From there, the platform invites registered manufacturers to join the request for quotations (RFQs), all while automatically excluding those with quotes that are too high. SyncFab, however, does give manufacturers the chance to revise such offers making it easier to understand boundaries, achieve compromise and win business with a would-be client.
The system then tries its best to match the auction with manufacturers who have the technical expertise, machinery and capacity to make the desired product. This is achieved by comparing the buyer’s product criteria with the order histories and earlier product designs of potential candidates. Also during the process, the two parties will be able to communicate about potential changes in product specifications and material requirements to eradicate costly mistakes and delays.
All this information is encrypted on a blockchain, using top security protocols. This, according to SyncFab, also helps the parties involved as they may not have the cyber-security staff on board.
Token sale has ended
SyncFab has recently ended the MFG token sale, during which it managed to reach its soft cap goal. Now they have the money to proceed with their project, which — we have no doubts — will expand to other parts of the U.S. And who knows, perhaps other parts of the world as well. Sounds like a plan.