Supply chains stretch across multiple individuals, organisations and jurisdictions. Getting the right materials and moulding them into the cars we see in showrooms is a painstakingly long and detailed process — but it may about to get a great deal more efficient, and a lot more ethical.
Supply Chain transparency with blockchain technology
Whether we're at the wheel, hitching a ride with a friend or a taxi - how often do we stop to ask ourselves how these cars came together, and what goes into this process?
Rarely, if at all.
The curious few who do ask the question enter the incredibly complex world of the automobile supply chain.
Car parts manufacturers and suppliers of hardware and software solutions are all looking to connect, negotiate and compete with distributors, dealers, regulatory agencies, insurance companies and banks, with big-money contracts stretching to many months and years being thrown about. It's a tangled web that leaves a lot to be imagined in terms of operational agility and innovation.
A transparency-enforcing technology like DLT could turn the supply chains out. All entities and processes involved in a chain of benefits from the simplification and in-built verifiability that DLT based systems promise - and companies are beginning to take notice.
The most significant recent development is Samsung, who has turned the technology into an attempt to track its vast global supply chain network. The South Korean electronics giant has officially outlined plans for a broad implementation of a blockchain based ledger system to track shipments.
Samsung has already initiated a blockchain pilot project to explore these opportunities in May 2017, over a period of seven months. Along with improvements in delivery times and increased efficiency, they were also able to slash shipping costs by an impressive 20%. One of the largest companies in the world is seemingly sold on the huge benefits of DLT.