Midaz for Supply Chain Management

Another compelling non-financial use case for using Midaz is managing the supply chain for a manufacturing company.

Context

A manufacturing company wants to maintain a transparent, secure, and efficient record of its supply chain operations. This includes tracking raw materials, production processes, inventory levels, and finished goods.

Benefits

• Transparency and Traceability: Ensures that every step of the supply chain is recorded and traceable.

• Efficiency: Enhances the efficiency of supply chain management by providing real-time updates on inventory and production.

• Security: Maintains the integrity and security of supply chain records, preventing tampering and ensuring data accuracy.

By leveraging Midaz for supply chain management, manufacturing companies can improve the reliability, transparency, and efficiency of their operations, leading to better decision-making and resource management.

Implementation

Creating Raw Materials and Finished Goods as Instruments

Use the Create an Instrument endpoint to create entries for various raw materials and finished products. Each item in the supply chain, from raw materials to final products, can be an instrument with unique identifiers.

Creating Supplier and Warehouse Portfolios

For each supplier and warehouse, create a portfolio using the Create a Portfolio endpoint. These portfolios will manage and track the flow of materials and goods.

Creating Accounts for Supply Chain Stages

Within each supplier’s and warehouse’s portfolio, create accounts for different stages of the supply chain. For example:

• Raw Materials Account: Tracks the amount of raw materials supplied or in the warehouse.

• In-Production Account: Monitors materials currently being processed.

• Finished Goods Account: Records the completed products ready for distribution.

• Shipment Account: Tracks items that are in transit to customers or other warehouses.

Handling Transactions

• When raw materials are received from a supplier, a transaction moves an entry from the supplier's "raw materials" account to the warehouse's "raw materials" account.

• During production, materials are moved from the "raw materials" account to the "in-production" account.

• Upon completion of production, items are transferred from the "in-production" account to the "finished goods" account.

• When goods are shipped, transactions move items from the "finished goods" account to the "shipment" account.

Generating Reports

Use the ledger to generate detailed supply chain reports, including current inventory levels, production output, and shipment status. These reports can assist in maintaining stock levels, planning production schedules, and managing logistics.

Regulatory Compliance and Audits

The ledger’s immutability ensures that supply chain records are secure and available for auditing to meet regulatory requirements and standards.