More than 30 billion parts are needed a year, BMW is trying out blockchain!
Whether a buckle has meticulously followed the quality standards of the car factory during the manufacturing process. Can a box of front windshield be made with zero defects and flaws?
Behind the scenes, in addition to the seamless communication between car manufacturers and component suppliers, how to clearly understand the source and supply route of each component, and finally realize tamper-free data sharing, and achieve high trust through high transparency, and it is also the global supply of automobiles The core grip of the chain matrix.
Regarding this subject, the feasible plan of German high-end automobile manufacturer BMW is to introduce blockchain technology to improve the visibility of raw materials and parts in the global supply chain and realize “one-click” traceability of all components.
BMW named it “PartChain”.
Specifically, a car is assembled from about 10,000 to 15,000 non-disassembled independent parts. BMW sold 2.52 million new cars worldwide last year. These parts often come from a large number of suppliers.
Among them are not only the well-known Tier 1 suppliers such as Bosch, Continental, Michelin, Valeo, Brose and ZF, but also relatively low-key suppliers such as Gestamp, Ferrar and Perzer.
In the past, the data of these parts and components companies were managed by each individual, and the collection standards, writing formats, and recording frequency were not unified, and the IT systems were also very different, basically in a state of “a hundred flowers blooming”.
Therefore, car manufacturers have to invest a lot of labor to ensure the accuracy and transparency of these data. BMW “PartChain” is the antidote to this “data ill.”
According to Andreas Wendt, a member of the management committee of the BMW Group responsible for procurement and supplier networks, in 2019, BMW successfully carried out a pilot project to purchase vehicle headlights. The pilot project involves a total of 31 factories in 2 BMW factories and 3 factories of automotive lighting suppliers.
Andreas Wendt
“This year, the platform plans to expand to about 10 suppliers. The future goal is to elevate the digitalization of the supply chain to a new level.
Build an open platform. With this platform, data in the supply chain can be exchanged and shared securely and anonymously. “Andreas Wendt said. After the blockchain has empowered the auto parts supply chain, it can track and call up the entire life course of a car door at will, from the stamping workshop, the finished product assembly and the original steel plate. This irreversible traceability does not require Manual operation, fully automatic recording of parts travel on the supply line.
In 2018, BMW founded the “Mobility Open Blockchain Initiative” (MOBI). 120 global leading automotive, mobility and technology companies including Ford, Renault, Bosch, IBM, Honda, and Hyundai are participating.
The MOBI vehicle identification standard is a program based on a blockchain database, used for the VIN code of the vehicle, and supports the storage of digital ownership certificates, warranty, mileage and vehicle identity.