How Remanufacturing and Blockchain Make Way for Sustainability
Remanufacturing in simple words is, taking previously used products or already used parts and putting them back together, and selling them at a lower price. When it comes to tracking and building a transparent and trustworthy system, blockchain can revolutionize the entire manufacturing supply chain. The data can be accessed, in real-time where every part and its condition are, securely recorded, on a ledger. Remanufacturing benefits the remanufacturer, the environment, and customers.
Businesses are intensely researching blockchain across the globe. Medical, banking, and pharmaceutical divisions have all found their reason to use blockchain and remanufacturing could be the next in line. Blockchain can give an industry-wide system where data is collected and managed transparently.
If merchandise has been manufactured overseas, then it can further be remanufactured in a separate part of the world. It also offers higher profit margins for remanufacturers as recycled parts tend to be cheaper. It builds stronger customer relationships by allowing long-time customers to be compensated for pieces that they would have thrown initially. Remanufacturing results in less landfill. The products are used until the quality deteriorates to the point that the product can't be used.
Remanufactured products are cheaper to produce, as it comes at 60 to 80 percent of the cost of their new counterparts. The same helps customers save a substantial amount of money. With remanufacturing benefits, remanufacturers face a lot of challenges too. Production of the remanufacturing industry can be difficult as quality, quantity, and availability of used products can be random and unpredictable. Blockchain technology, with its expertise to act as a digital distributed ledger, can bring transparency and efficiency into the remanufacturing supply chain.
Revolutionize the supply chain, remanufacturing is a more refined version of recycling and helps to reduce CO2 emissions as well as provides multiple benefits for communities globally. Blockchain can provide solutions to the significant problems remanufacturers are facing. It can enhance supply chain management by implementing a transparent and reliable system throughout the industry.