> ## Documentation Index
> Fetch the complete documentation index at: https://docs.lerian.studio/llms.txt
> Use this file to discover all available pages before exploring further.

# Midaz for supply chains

> Use Midaz as a ledger for supply chain management, recording every raw material, production, and shipping movement as an immutable, auditable transaction.

Manufacturing companies manage complex material flows. Raw materials arrive from many suppliers, move through production stages, become finished goods, and ship to customers. A quality issue or a regulatory audit raises one question. Where did this material come from, and where did it go? Today that answer takes days of cross-referencing spreadsheets and ERP exports.

Midaz records every material movement as an immutable ledger transaction. From receiving to production to shipping, you get a complete and auditable history of your supply chain.

### Benefits

* **Transparency and traceability**: An immutable audit trail documents every step. Recall investigations and compliance audits become straightforward.
* **Efficiency**: Real-time balance queries show inventory levels and production stages. You avoid manual stock checks and planning delays.
* **Security**: Tamper-proof records block unauthorized changes to supply chain data. Your regulatory reporting stays accurate.

## What changes with Midaz

***

| Without Midaz                                                         | With Midaz                                                                               |
| :-------------------------------------------------------------------- | :--------------------------------------------------------------------------------------- |
| Material tracking spread across ERP modules, spreadsheets, and emails | Every material movement is a ledger transaction with full audit trail                    |
| Recall investigations take days of cross-referencing multiple systems | Query the ledger for the complete journey of any material — instant traceability         |
| Inventory counts done manually or through periodic reconciliation     | Real-time balance queries show current stock at any stage (raw, in-production, finished) |
| Supplier disputes lack authoritative records                          | Immutable transactions provide tamper-proof evidence of every delivery and movement      |
| Regulatory audits require weeks of data preparation                   | All records are audit-ready by design — export any time range on demand                  |

## Using Midaz

***

* **Assets**: Set up each supply chain item as an Asset with a unique code. Assets cover everything from raw materials to final products.

* **Portfolios**: Create a portfolio for each supplier and warehouse. A portfolio groups the accounts that track material and goods flow.

* **Accounts**: Within each portfolio, create an account for each supply chain stage. For example:

  * **Raw materials account**: Tracks raw materials held in the warehouse.

  * **In-production account**: Monitors materials in the production process.

  * **Finished goods account**: Records completed products ready for distribution.

  * **Shipment account**: Tracks items in transit to customers or other warehouses.

* **Transactions**: Use a transaction to update accounts as materials move through each stage. For example:

  * **Receiving materials**: When materials arrive, a transaction moves the amount from the supplier's Raw Materials account to the warehouse's Raw Materials account.

  * **Production**: During production, a transaction moves the amount from the Raw Materials account to the In-Production account.

  * **Production completion**: When production finishes, a transaction moves the amount from the In-Production account to the Finished Goods account.

  * **Shipping**: When goods ship, a transaction moves the amount from the Finished Goods account to the Shipment account.

* **Reports**: Query Midaz for current inventory levels, production output, and shipment status. Use the data to plan stock, production schedules, and logistics.

* **Compliance and audits**: The immutable Midaz ledger keeps supply chain records secure and audit-ready. It meets regulatory requirements and standards.