Automobile giant, BMW Group plans to roll out its blockchain solutions to 10 suppliers this year.
The Germany based car manufacturing company which currently has a supplier network of about 12,000 in over 70 countries has successfully pre-tested the blockchain supply chain solution named “PartChain” on BMW in 2019 as revealed by an announcement on March 31st.
The 2019 pilot phase was targeted at ensuring traceability and efficient data transparency in automobile components across complex supply chains. However, the BMW Group’s major aim in 2020 is in implementing the PartChain solution in purchasing and tracking front headlights. This will involve a total of their 31 auto plants with three locations of their automobile lighting suppliers
PartChain and Cloud Support
The BMW Group’s blockchain solution with PartChain is to ensure an efficient sharing of data. It also focuses on the safety of data among multiple supply chains while maintaining anonymity. According to Andreas Wendt- a member of BMW AG’s Board of Management, PartChain will make use of Cloud technologies from Amazon Web Services alongside Microsoft Azure while utilizing Blockchain to provide tamper- proof, data collection and transactions.
Sustainability in Focus
The introduction of PartChain has a major underlying focus which is in line with BMW Group’s sustainability pursuit. According to the Chairman of the Board of Management of Bayerisch Motoren Werke- Oliver Zipse;
“Sustainability is not a trend for us-it is a call to action. For us at the BMW Group, the present and the future are both of great importance. Our Sustainable Value Report 2019 shows that we have already fulfilled almost all the sustainability goals we set for ourselves in 2012 for 2020. For the remainder, we are in the final stretch”
As is evident, the PartChain Supply Chain Management innovation has many advantages capped by its potency to help maintain sustainability.
New technological changes drive the automobile industry. We can expect many more announcements from several auto giants and tech giants. Even though BMW is not yet a full fledged pioneer in the utilization to boost supply chain operations with blockchain technology, PartChain’s role in the operations of BMW will translate to greater product value for their numerous customers and stakeholders globally.
Previously in 2018, Audi released a Proof of concept (PoC) of its blockchain system after successfully testing the technology based on Hyperledger Fabric. The innovation targets improving car supply chain security and transparency. Several other auto giants like Mercedes, Volvo etc. have also taken a bold leap in the deployment of several innovative blockchain solutions.