The manufacturing industry on blockchain

Buffeted by intricate sourcing arrangements, fluctuating demand, counterfeit parts and now, uncertain economic times, manufacturers today face significant challenges in operating complex global supply chains. Without visibility and traceability at every step, from raw material to finished product, companies can find it hard to satisfy customers, demonstrate environmental compliance and meet financial goals.


of manufacturers surveyed say they are facing supply chain disruptions from the global pandemic.

Source: National Association of Manufacturers (PDF, 84 KB)


of organizations are willing to consider, and often adopt, early-stage supply chain apps and technologies.

Source: Gartner


USD is the annual value of global trade in counterfeit parts and products.

Source: National Association of Manufacturers

How can IBM Blockchain Transparent Supply help?

Data is generated at every step in the supply chain, from sourcing raw materials to manufacturing the final product. IBM Blockchain Transparent Supply is helping organizations build blockchain-based ecosystem networks that generate new value from that data and forge partnerships based on trust.

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Respond to demands for greater variety with shorter lead times

Seamless, instantaneous communications up and down the supply chain can help all partners meet customer requirements for faster and more unique fulfillments, including secured delivery of digital designs for onsite additive manufacturing.

Trace lot lineage and provenance end to end

Blockchain enables manufacturers to trace the full lineage of a product, from unique serial number back to the origin and authenticity of components, helping to avoid counterfeit parts and enable targeted recall responses in seconds, not days.

Manage a global, diversified supply chain digitally

Remove paper-based processes, digitize documents and integrate with existing ERP and EDI systems to reduce costs and gain visibility into tier 2 and tier 3 suppliers that, despite their small size, can quickly and significantly disrupt production, particularly in post-pandemic times.

Demonstrate compliance with social initiatives and environmental regulations

From responsible sourcing to energy use to minimizing the environmental impact of manufacturing processes, companies can provide customers, auditors and regulators digital proof of adherence to commitments by sharing the blockchain’s record of events in a product’s lifecycle.

Use case

Building a demand-driven supply chain for the secondary tire marketplace

When manufacturers and distributors are blind to consumer demand as it is happening at the retail level, inefficiency and waste spread across the supply chain. In the replacement tire industry, that adds up to USD 2 billion a year.

Why? Without timely visibility, manufacturers over-produce the tires consumers don’t want by a systemic factor of 30 percent. And because they are manufacturing the wrong tires, retailers are experiencing a simultaneous 30 to 60 percent shortfall in fill rates of orders from suppliers.

Industry leader American Tire Distributors (ATD) is using blockchain to tackle the problem by convening a network, TORQATA, to serve all participants in the tire supply chain through shared, trusted information. For example, the network is using IBM Blockchain Transparent Supply and advanced analytics to build an automated replenishment system triggered by sales data from the tire retailers. The result is a demand-driven supply chain, which one study (PDF, 861 KB) showed can improve sales with on demand availability of products by 4 percent, cut operating costs by up to 10 percent and reduce inventory by up to 30 percent.

Transforming Supply Chains with Blockchain for a Transformed World.

Watch: Blockchain transforming supply chains

See how Transparent Supply is building a next-generation supply chain.

Read the brief