In the ever-changing landscape of finance, a remarkable phenomenon has taken hold: the rapid growth of decentralized finance, or DeFi. This ...
Introduction
In this new era of technology and innovation, vehicles have gradually evolved into far more than just modes of mobility. Cars nowadays are mobile data-centered with integrated sensors and built-in systems that collect data about the vehicle.
Talking about Blockchain, it can increase trust and collaboration among organizations, consumers, and even cars by providing more secure, traceable transactions and better access to and openness of information.
It’s no surprise that automakers are paying attention to blockchain and making some strategic investments in the field. While blockchain has the potential to disrupt the status quo on its own, when combined with the IoT, artificial intelligence, and big data, it has much more potential (AI).
Automotive Industry: How to Profit From Blockchain (simon-kucher.com)
Today, with the advancement of technology, the automotive industry has transformed from internal combustion engine vehicles to hybrid and electric automobiles.
Automotive Supply chain: The Challenges
The automotive industry involves numerous challenges, some of which include massive car recalls, relatively low customer loyalty, the black market for counterfeit spare parts, and more. Below are the most prominent ones:
Synthetic Identity Fraud: It is a major concern for those immersed in the Automotive industry. It is the act of using information from multiple identities and then combining it to create a fake identity. With these identities, fraudsters can acquire credit cards and take out car loans. This type of identity fraud costs the automotive industry millions of dollars a year, and Debut Infotech is now turning to blockchain to stop it.
Use of Multiple Databases: Most car brands are still using multiple databases, rather than one single cloud-based database, to store customer information, making it extremely difficult for the company to access customer information quickly.
Traceability challenge: The dispersed nature of today's automotive supply chain, with different types of business practices and varying cultural norms, has countless risks for multinational businesses, making traceability both critical and complex.
Time and cost challenge: Automotive Supply Chain involves several intermediaries such as manufacturers, logistics providers, brokers, agencies, dealers, and more. All that makes the supply chain extremely complex, expensive, and time-consuming.
Transparency challenge: Procurement is a complex undertaking involving numerous administrative and logistical challenges, the lack of transparency being the major one.
Efficiency Challenge: Due to a lack of transparency and traceability, exporters and other stakeholders are unable to make the automotive supply chain efficiency while ensuring the highest levels of security.
Copious Paperwork Involved: It is difficult to manage such a large volume of transactions manually using excel spreadsheets and workbooks.
Automotive Supply chain: Blockchain Use-Cases
An automotive supply chain-based Blockchain solution can help the businesses provide its customers with unprecedented levels of transparency across the entire vehicle lifecycle from manufacturing to disposal, allowing them to effectively trace and track their vehicle supply chain.
The Blockchain-based automotive solution can help overcome the challenges in automotive industry in ways as mentioned below:
Identification & Tracking
- Enhance trusted relationships with manufacturers
- Identify spare parts in a unique way
- Provide governance models within the Blockchain network
- Verify the authenticity of a part during replacement
Vehicle Recall Optimization
- Allow vehicle manufacturers to uniquely identify every single part
- Issue specific recalls for individual VIN numbers
- Know when a part has reached its usage limit
- Save money and time for the manufacturers
Ownership Transfer
- Authenticate, validate, and transfer ownership of specific assets
- Eliminate the risk of a single point of failure
- Eliminate the need for intermediaries that facilitate deed transfers
- Promote a global database that does not compromise the security
Loyalty-based Tokens
- Create a computer-generated loyalty token
- Issue loyalty points that can be redeemed and used as a currency
- Record car dealer and customer purchase
Auto Insurance
- Automate service contracts associated with financing and executing repairs.
- Ease the filing of certain insurance claims and deployment of service technicians.
- Streamline both claims processing and subsequent payouts.
Overcoming the challenges with Blockchain-based solutions
The basic structure of Blockchain technology in supply chain management is as depicted below:
Using this structure, Blockchain can help automotive industry in the following ways:
Enhanced transparency and efficiency
Each stakeholder in the automotive supply chain could record, trace, and track the movement of the commodity, from manufacturers to buyers.
Cost Reduction
With our Blockchain based solution, middlemen and intermediaries were removed from the equation, which reduced the probabilities of additional costs and improved the security of the transactions.
Origin Tracking Made Simple
Our solution provided provenance tracking and record keeping which made the information fetching extremely easy.
Reduced paperwork up to 15%
The client was able to validate every single transaction with tight consensus algorithms that didn’t allow data tampering and ensured validity.
Final Words
The automotive industry has now become one of the most technologically advanced industries alongside the transformation of conventional vehicles to autonomous (self-driving) automobiles in line with its adaptation to the changing innovations. Creating a blockchain solution that is secure, fast, and reliable is quite a challenge on its own. But doing it under time pressure, with a roadmap that from day one is behind schedule, requires exceptional management skills, expertise, and extraordinary team effort.
Team Debut Infotech can help you develop solutions in the form of Blockchain-powered digital dossier to help your client maintain transparency and traceability in their business operations. Develop your Blockchain-based supply chain solutions now.
