The use of digital credentials in manufacturing processes has become a very revolutionary and transformative force for the whole industry. It reshapes how operations are being validated, secured, and streamlined. Plus, it makes supply chain management more transparent and manageable. 

By 2024, the market for digital credential management software has grown to $2.29 billion, with projections to reach $3.76 billion by 2028. This growth highlights the shift towards digital credentials in manufacturing. 

EveryCRED offers digital credential management software solutions for the manufacturing industry. Our verifiable credential solution increases traceability in various stages of manufacturing processes. 

What Do Digital Credentials in the Manufacturing Sector Mean? 

In the manufacturing sector, digital credentials mean a system of verifiable and tamper-proof digital certificates/documents that validate various aspects of the product processes – from worker certificates to quality control measures. 

Such credentials are created with cryptographic signatures for more security, authenticity, and trustworthiness. In some regions, these credentials are served as proof of qualifications, operation standards, and compliance due to regularity requirements. 

The main components of digital credentials in the manufacturing industry are: 

• Verifiable Credentials (VCs) – provide tamper-evident certification 
• Decentralized Identifiers (DIDs) – unique, global identification 
• Blockchain-based verification systems for enhanced security 

Find more about verifiable credentials in manufacturing here. 

Transforming Industries 

The implementation of digital credentials and digital investments has led to many improvements in manufacturing efficiency. According to recent industry reports, organizations with digital manufacturing have experienced: 

• A 30% reduction in machine downtime 
• 15-30% improvement in labor productivity 
• 10% increase in production output 

Use Cases of Digital Credentials in Manufacturing 

These credentials can be used in various ways in the manufacturing industries: 

1. Compliance Verification: A digital credential can confirm that a facility adheres to regulations like ISO 9001 or OSHA standards.  
2. Skill Verification: A worker’s competency/qualifications in operating specific machinery or following safety protocols can be certified through digital badges, which can be instantly verified by employers or clients. 
3. Product Authenticity: Companies can issue credentials certifying the authenticity of their products, reducing counterfeit risks. For instance, EveryCRED offers solutions for verifying product origin and certifications. 

The use of verifiable credentials and decentralized identity in manufacturing ensures that credentials are not only digitally accessible but also carry cryptographic proof of their authenticity. 

Challenges of Digital Credentials in Manufacturing 

Despite the numerous benefits of digital credentials, their adoption in the manufacturing sector faces several challenges: 

Security Concerns 

Manufacturing facilities face significant challenges in protecting sensitive production data and intellectual property while maintaining transparent credential verification. 

Integration Complexity 

Implementing digital credential systems with existing manufacturing infrastructure requires substantial technical expertise and resources. 

Employee Adoption 

Workers need proper training to understand and effectively use digital credential systems, which can slow down processes initially. 

Cost Considerations 

The initial investment in digital credential infrastructure can be substantial, though the long-term benefits typically outweigh the costs. 

Standardization Issues 

The lack of universal standards for digital credentials in manufacturing can create compatibility challenges across different systems and suppliers. 

Benefits of Verifiable Credentials in Manufacturing 

Enhanced Operational Efficiency 

Manufacturing facilities can instantly verify worker qualifications, reduce downtime and improve project initialization speeds. This system has been shown to decrease verification times compared to traditional methods. 

Trust and Transparency 

VCs enable manufacturers to provide a tamper-proof record of a product’s origin, quality, and compliance. This increases trust among stakeholders and transparency in processes. 

Improved Safety Compliance 

Digital credentials ensure that only properly certified personnel operate specific machinery or handle dangerous materials. Real-time verification capabilities help maintain strict safety standards and reduce workplace incidents. 

Cost Reduction 

By automating the verification process, organizations can significantly reduce administrative costs. The companywide application of digital systems like verifiable credentials can reduce credential verification expenses. 

Better Customer Experience 

Modern customers prefer transparency from businesses. A study states that 94% of consumers are likely to be loyal to a brand that is more transparent. And over 39% of customers will switch to a more transparent business. Digital credentials, when issued as verifiable credentials, can enhance customer experience. 

Global Workforce Management 

With standardized frameworks like EBSI or W3C standards, credentials can be recognized across borders. This way, digital credentials facilitate easier management of international teams by providing standardized and instantly verifiable qualifications across borders. 

Improved supply chain traceability 

Digital credentials as VCs allow for the creation of a secure, end-to-end record of a product’s journey through the supply chain. Such facilities enable better traceability and reduce the risk of counterfeiting. 

Verifiable Credentials Adoption as Digital Credentials in Manufacturing 

Here’s how manufacturing companies can prepare for the integration of verifiable credentials: 

Step #1: Strategic Planning – Understand the potential use cases for VCs within your operations. Identify where VCs can add the most value, like compliance, product authentication, or supplier onboarding. 

Step #2: Technology Selection – Choose a platform like EveryCRED that offers blockchain-based VCs. Ensure the platform is secure, compliant with data protection laws like GDPR, and can integrate with existing systems. 

Step #3: Change Management – Prepare the workforce for the shift. This includes training on how to issue, manage, and verify VCs, as well as promoting a culture that accepts digital transformation. 

Step #4: Pilot Projects – Start small with pilot projects to test the integration of VCs in one part of the supply chain or certification process. Use these pilots to refine processes before scaling up. 

Step #5: Stakeholder Engagement – Engage with all stakeholders, including suppliers, regulators, and customers, to ensure they understand and can use the VCs you will issue. 

Final Words 

Digital credentials, particularly verifiable credentials, are the future of every industry, and they have become a strategic necessity for the modern manufacturing sector. They offer a way to enhance trust, reduce fraud, streamline processes, and ensure compliance in a global market.  

As industries continue to digitize, embracing verifiable credentials is a step toward becoming future-ready. EveryCRED is the perfect solution for manufacturing businesses that want to integrate digital credentials into their processes. Contact our team, and we will guide you on how you can increase transparency and trust in your supply chain among all parties involved.