logo
logo
Sign in

Can Blockchain Drive Efficiency in the Automotive Supply Chain

avatar
oodles blockchain

Along with other innovative emerging innovations, Blockchain is being actively promoted in many business fields. Still, the perception of this latest business method has some large holes. The article highlights the potential of Blockchain supply chain solutions development for the automotive industry, technology’s mechanics and strength, and what it could mean for the supply chain C-suite.

Understanding Blockchain

Put simply, the blockchain technology has provided the foundation of a new type of internet by enabling digital data to be transmitted but not replicated. Picture a Google spreadsheet which is shared thousands of times over a computer network for a better representation of the protocol. Further, imagine that this network is built to update this spreadsheet periodically, and you have a clear idea of what is blockchain. Additionally, add characteristics of blockchain to that spreadsheet, like an immutable ledger, consensus mechanism, cryptographic encryption, and more. It makes it an ingenious invention that, if used as the underlying infrastructure, can revamp the entire automotive supply chain.

How can it Benefit the Automotive Supply Chain?

Automotive supply chain managers can use blockchain to multiple supply chain problems, like keeping complex databases and monitoring products and services. A far less corruptible and better-automated alternative to centralized databases is another advantage.

In the field of monitoring and testing products and services, a blockchain-based supply chain management system allows for accurate record-keeping and monitoring of provenance as product information can be accessed via embedded sensors and RFID tags.

Blockchain may trace the past of a commodity right from its origin to where it is in the present time. Also, this form of exact provenance monitoring can be used to detect fraud in any part of the supply chain.

The car supply chain is a highly dynamic and big field with numerous participants, ranging from parts suppliers, producers to sellers. Delivering real customer value includes a review of existing infrastructure and business processes, as well as solutions that respect protection, confidentiality, and authorization permissions. Blockchain can prove an ideal solution. Blockchain can be used by automotive manufacturers to protect their brands against counterfeit goods and to build customer-centered business models.

collect
0
avatar
oodles blockchain
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more