Blockchain offer a solution to the growing problem of how to manage increasingly complicated networks of manufacturers and suppliers at a time when transparency, speed, and agility are critical.
A typical carmakers is likely to work with about 30 partners and many more suppliers across multiple industries to produce the technologies, applications, platforms, and services needed for a smart car.
Blockchains enable improved supply chain management that is more transparency and faster by the following means:
* Time-stamping, tracking, and automating transactions, so that events can be audited in real time
* Minimizing the involvement of intermediaries such as bankers, insurers, and brokers
* Setting up a wide range of self-executing contracts to automate repetitive processes such as billing and shipping
* Establishing proof of quality, provenance, payment, and performance to minimize counterfeiting and fraud
* Making it easier, faster, and cheaper to onboard new vendors and partners by assigning digital IDs
A blockchain’s checks and balances address the trust problem. The technology provides a shared, trustworthy platform for updating information such as the financial strength of vendors, payment conditions, quality standards, pricing, delivery requirements, service specifications, and conflict resolution procedures. This information platform can make onboarding of new suppliers much faster and more efficient, with far less time spent on due diligence.
<>BSmart Contracts automatically enforce rules and agreements
Blockchain enable smart contracts which are electronic agreements that self-execute according to predefined rules. By virtually guaranteeing the performance of often unknown suppliers, smart contracts allow companies to bypass conventional ways of establishing trust. Given the speed and ease of executing these contracts, companies could save substantial time and money.