Supply chain transparency in the automotive sector is neither clear-cut nor easily attained, thanks to the hundreds of different suppliers involved with taking a vehicle from the raw material stage to the final, drivable product.
Blockchain is already making some waves in procurement circles. In April, Minespider announced that it would start working with Volkswagen to use the technology to help improve the manufacturer’s lead supply chain. “Minespider and Volkswagen are working together to make procurement both more transparent and secure,” the company said in a press release, adding that blockchain allows participants to trace the supply chain from the point of origin to the factory.
“Sustainability in the supply chain is one of our top priorities,” said Marco Philippi of Volkswagen. “We see blockchain technology as part of the solution to ensure compliance with environmental and social standards along the entire supply chain.”
An open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way, blockchain comprises a list of records, or “blocks,” that are linked together using cryptography. By design, a blockchain is resistant to modification of the data, making the technology more reliable than traditional means of sharing data and information across business partners.