Your powertrain controls are shipped to assembly from Kariya-Aichi, Japan; your fuel systems arrive in bulk from Levallois Cedex in France; your aluminum cylinder heads are trucked up Interstate 35 through Laredo out of Monterrey. How can you assure, every step of the way, that the parts you ordered are the parts that get delivered? Counterfeit or otherwise faulty parts can fail on the highway, with catastrophic results. Millions of dollars could be lost in the upfront cost of recalls and damage to your reputation. This risk only increases with the advent of autonomous vehicles. Writing for Car Tech, Movimento’s CTO Mahbubul Alam argues that the adoption of blockchain technology in the automotive supply chain can significantly reduce supply chain risk.
Blockchain technology, the foundational infrastructure of the cryptocurrency Bitcoin, is a timestamped ledger of transactions distributed over a network of computers. If each auto part were assigned a unique code, blockchain would enable auto manufacturers to track each step of the production and transportation process through a secure database updated by suppliers in real time.
Each part with its robust digital identity is visible in this tracking system. The OEM and suppliers have encrypted records within the ledger, which makes it easy to identify an incorrect or fraudulent part. No other approach creates such an open, all-in-one system that establishes trust and identity without intervention.
With blockchain, the murk of time and distance would be dispelled; the entire process all at once would become visible. Not only would manufacturers be able to respond more quickly to disruptions and streamline their supply processes with access to this information, they would also be able to guarantee all their parts are one hundred percent safe as tested.