How Tesla and BMW are leading a supply chain renaissance with blockchain – Forbes

The list of companies that have turned to blockchain to improve their supply chain production processes has just grown, with two very important names. Last week, BMW released details about its project called PartChain which uses blockchain technology in its logistics operations. Another big name, Tesla Inc, was also involved in a blockchain pilot project that provided improved information on the shipping bill and thus efficiency gains for all participants in the project managed by a large shipping consortium. This is not surprising since, previously, large companies like Walmart and Nestlé used blockchain as part of their involvement in the IBM Trust Food provenance project. Interestingly, in all of these cases, the preferred blockchain protocol was Hyperledger Fabric, which has established itself as the dominant protocol for supply chain applications.

The Global Shipping Business Network (GSBN) blockchain consortium, which is subject to obtaining the required regulatory approvals before its official creation, is made up of the main operators of shipping companies in the industry like CMA CGM, COSCO SHIPPING Lines, Evergreen Marine, OOCL and Yang Ming and port terminals such as COSCO SHIPPING Ports, Port of Qingdao, PSA International, Shanghai International Port Group (SIPG) and Hutchison Ports. CargoSmart uses the Hyperledger Fabric blockchain and recently conducted a pilot project with the terminal operator Shanghai International Port Group SIPG and the shipping company COSCO. In this specific project, in accordance with the trend in the digitization industry of the generally very paper-intensive process, document processing was done on a blockchain. Previously, shipping companies and the port had to verify and erase documents separately, but now, thanks to blockchain technology, they are able to see the same amount of data at the same time and sign it transparently. . Containers filled with Tesla auto parts could be released faster with accelerated support with the advantage of one-stop, latency and contactless blockchain using the Hyperledger Fabric protocol. The pilot was technically supported by CargoSmart, a leading supplier of technology-based shipping management solutions based in Hong Kong, which used Hyperledger Fabric to make the end customer, Tesla, receive auto parts faster and cheaper. Recently, CargoSmart has further improved the application to display the loaded discharge, the appointment date and the terminal release, allowing shippers to have better visibility of their cargoes.

The GSBN aims to accelerate the digital transformation of the shipping industry. It intends to provide a platform for all participants in the maritime supply chain to work collaboratively to accelerate technological innovation and develop solutions via reliable and secure data exchange platforms.

Similar to Tesla, the German automaker BMW, the world’s 14th largest producer of motor vehicles, has been looking at blockchain to optimize its processes and is going further by launching its own blockchain initiative called PartChain.

One of the members of the BMW AG management committee responsible for purchasing and the supplier network, Andreas Wendt explained that PartChain adds an additional layer of tamper-proof and verifiable data collection to their supply chain processes. While the first pilot was only aimed at tracing the front lights, the roadmap must also include the raw materials, and the platform will offer transparency and end-to-end traceability, from mine to factory.

This decision aims to take the digitization of purchases within the BMW Group to a higher level. Our vision is to create an open platform that will allow data in supply chains to be exchanged and shared securely and anonymized across the industry.

It’s no surprise that major automakers like Tesla and BMW are taking the lead to innovate and improve their supply chain processes. The benefits of using the blockchain, such as improved cost savings, improved traceability and increased transparency, are powerful drivers of these innovations. In 2018, the Mobility Open Blockchain Initiative (MOBI) specialized consortium was co-founded by the BMW Group and 120 other large automotive, mobility and technology companies. The future is to connect as many counterparties as possible on the same network and to use new advanced technologies such as the Internet of Things, artificial intelligence, improved GPS, 5G wireless and, of course, blockchain are the springboards for a new connected future.