Help Desk -
9958816305, 9810335381
Email
Password

BMW Group uses Blockchain to Drive Supply Chain Transparency

Auto News - Published on Wed, 08 Apr 2020

Image Source: BMW Blockchain
The BMW Group is using innovative digital technologies to optimise its processes. A good example of this is Blockchain, a technology that enables tamper-proof data sharing, with potential applications throughout the entire automotive value chain. The BMW Group is using this technology in purchasing to ensure the traceability of components and raw materials in multi-stage international supply chains. The automotive industry's international supply chains are highly complex. They generally involve numerous players at different delivery stages and often undergo rapid changes. For this reason, considerable effort can be needed to clearly track a component’s origin or supply route, for instance. Up until now, it has been customary for the many partners to manage their own data separately. The companies’ respective IT systems have not always been able to communicate consistently with one another. For the BMW Group’s purchasing experts and its suppliers, ensuring transparency therefore involved considerable manual effort. The BMW Group initiated the PartChain project to ensure seamless traceability of components – more or less “at the push of a button” – and provide immediate data transparency in complex supply chains for all partners involved going forward.

PartChain uses Cloud technologies (e. g. Amazon Web Services, Microsoft Azure) in addition to Blockchain solutions. This allows the origin of components to be tracked between all participating partners without any risk of manipulation. The 2019 pilot project already involved two of the BMW Group’s total 31 plants (Spartanburg/US and Dingolfing), as well as three locations of the supplier Automotive Lighting. This year, the platform will be rolled out to about ten suppliers.

An industry-wide solution would enable all partners participating to link their business processes more closely and coordinate between companies. However, common standards and control models are needed to leverage the full potential of an open platform. The BMW Group therefore co-founded the Mobility Open Blockchain Initiative (MOBI) in 2018, a cross-industry initiative comprising 120 leading automotive, mobility and technology companies. Within MOBI, the company heads a working group on supply chain issues. The MOBI members’ shared objective is to help Blockchain technology break through in the mobility sector.

Source :

Posted By : Yogender Pancholi on Wed, 08 Apr 2020
Related News from Auto segment