Material Flow Audit

Definition ∞ A material flow audit is a systematic assessment that tracks the movement and transformation of physical materials throughout a production process or supply chain. This audit quantifies material inputs, outputs, waste generation, and energy consumption at each stage of the lifecycle. The primary goal is to identify inefficiencies, reduce waste, and improve overall resource utilization. It provides a comprehensive view of material usage and impact.
Context ∞ Blockchain technology offers a powerful tool for conducting material flow audits by providing an immutable and transparent record of every material transaction and transformation. In crypto news, this application is frequently highlighted for industries focused on sustainability and ethical sourcing, such as mining or manufacturing. A blockchain-based material flow audit can verify the origin of raw materials, track their processing, and ensure compliance with environmental and labor standards, thereby enhancing trust and accountability.