More and more companies are turning to blockchain in order to improve their supply chain production processes, and there are two very important names among them. BMW released details this past week of its project called PartChain, which uses blockchain technology for logistics operations. Another big name, Tesla Inc., is also involved in a blockchain pilot project that provides improved information on sea waybills and could therefore increase efficiency for all the large shipping consortium participants operating the project.
It's not really surprising that before this, large companies such as Walmart and Nestle have also used blockchain in their participation in the IBM Food Trust source project.
Interestingly, the preferred blockchain protocol in all of these cases is Hyperledger Fabric, which is arguably making itself the dominant protocol for supply chain applications.
German automaker BMW is one of the top 14 automakers in the world, along with Tesla. BMW is also using blockchain to optimize its own processes, and BMW has gone one step further by launching their own blockchain initiative named PartChain.
BMW Blockchain PartChain
Andreas Wendt is a member of BMW's management board responsible for purchasing and supplier networks. He explains that PartChain adds an additional layer of tamper-proof and verifiable data collection to BMW's supply chain processes. While the first pilot project only traces headlights, the PartChain roadmap will also include raw materials, and the PartChain platform will provide end-to-end transparency and traceability from mine to plant.
This initiative is designed to take BMW Group's procurement digitization to the next level. Our vision is to create an open platform where data in the supply chain can be securely exchanged and shared and anonymized across industries. Andreas Wendt, member of the BMW Group Management Board, said.
It's no shock that large automakers such as Tesla and BMW are taking the lead in innovating and improving their supply chain processes. The various benefits that the use of blockchain can bring (e.g., cost savings, enhanced traceability and increased transparency) provide a strong incentive for innovation.
The BMW Group has joined forces with 120 other leading technology companies in the automotive and transportation industry in 2018 to create the Mobility Open Blockchain Initiative (MOBI), a professional consortium. The future is to connect as many counterparties as possible on the same network, using advanced new technologies including the Internet of Things, artificial intelligence
Enhanced GPS, 5G wireless, and more, and blockchain is a natural stepping stone to connecting the new future.