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- BMW group initiated the PartChain project mainly for the ensurance of flawless and smooth tracing of the components by easing its accessibility.
- The BMW group that previously conducted a successful pilot project for purchasing front lights in the year 2019 is now looking forward to the expansion of their project to a greater number of other suppliers.
The Blockchain that offers transparency of transactions, undoubtedly has wide potential applications in the automotive industry. Many industries have come to realize the solutions blockchain can provide. One amongst those industries is the BMW group. They have discovered the role blockchain can play in improving the life of motorists and the effectiveness it has in resolving future issues.
The BMW Group is specific in its aim. It is striving to utilise newer and innovative digital technologies to create a strong foundation in the optimisation of its processes. The BMW group that previously conducted a successful pilot project for purchasing front lights in the year 2019 is now looking forward to the expansion of their project to a greater number of other suppliers.
Blockchain’s Use case in Automotive Industry
The complexity of the automotive industry’s international supplychains involves a huge number of people during different stages of the process and also undergoes fast changes. To ensure transparency has not been that undemanding for the BMW Group’s purchasing experts and its suppliers as the involvement of manual efforts were needed in an enormous amount.
The reason being that efforts are necessary to track a component’s origin or its supply route. The drawback that held the whole process until now was that managing data for the partners was independent and customary. Also, the inconsistency of communication amongst each other existed in the IT systems of a company.
BMW Initated Blockchain based Project PartChain for Traceability
BMW group initiated the PartChain project mainly for the ensurance of flawless and smooth tracing of the components by easing its accessibility. Also for the provision of immediate data transparency to the partners that have to involve in the complexity of the supply chains.
Throwing light on the aim of the PartChain project, Wendt said that the PartChain enables impenetrable verification of the collection and transaction of the data in their supply chain. In the long run, the BMW Group keeps expectations with the project that it will enable complete tracking of the critical raw materials.
Wendt also added that their initiation of the project is to take the design of the digitalisation of purchasing at the BMW Group to a higher and innovative level. And their vision was to create an open platform for the allowance of data within supply chains to be exchanged and shared with safety and with no interference.
In addition to Blockchain solutions, PartChain uses Cloud technologies to allow the components to be tracked amongst all the participating partners without owning the risk for manipulation. The 2019 pilot project that involved two of the BMW Group’s total 31 plants (Spartanburg/US and Dingolfing) and three locations of the supplier Automotive Lighting is said to extend out to about ten suppliers this year.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
