Technologies are magical. We do not just utilize them, we live them. When it comes to the automotive industry, each day turns out to be a remarkable one with disruption experienced through new technology. Blockchain, a fairly new technology to have entered the automotive industry is all set to be a game changer for several use-cases by the year 2021. According to IBM institute’s report, it is predicted that nearly 62% of the automotive industry will make use of blockchain technology.
Right from advancing new business models, reward programs and rentals, to changing the nuances of automotive industry’s manufacturing supply chain, there’s no denying that Blockchain is the new black and the new disruptive force. Read on to know the ways in which it is transforming Automotive industry.
Creating a Connected Supply Chain
It is possible to implement blockchain technology to every facet of the supply chain right from product inception and designing to distribution development and financing. Blockchain connects automotive supply chain with manufacturer of automotive organizations enabling them to track, sell, and pay for goods as soon as they reach the destination.
To start with, it is possible to capture, store and update the data through blockchain. The members who are a part of blockchain network can also view and verify the data. Thereafter, one can initiate the payment processing through smart contracts.
Optimizing the Automotive Manufacturing Process
Often, it is challenging for manufacturers to predict recalls, demand spikes etc. They’re always on the lookout for a technology which is intuitive and helps them to manage their manufacturing schedules. Through blockchain, it is possible to create a distributed ledger which contains bills of quality inspections undertaken during the manufacturing process, bills of vehicle components lading and WIP information of vehicle assembly. It also helps the manufacturers to track the parts in real-time.
Vehicle Parts Verification & Tracing
Information pertaining to vehicle parts including manufacturing date, manufacturer etc. can be captured and stored on blockchain. It also tracks the journey of parts change right from the manufacturer to the end customers enabling stakeholders including customer, manufacturer and service center to verify and trace vehicle parts.
A blockchain-driven system gives a unique id to every part manufactured which has important data like ownership-related information and manufacturing date. Whenever there are accidents or mishaps, blockchain helps the authorities to find out about the root cause the individual responsible behind the damage enabling them to settle disputes.
Finance & Auto Leasing
Last, but not least, blockchain also plays a significant role in empowering Dealer Management Systems and keeps data risks in the leasing sector at bay. When it comes to leasing a vehicle to the customer, it connects entities and enables communication between them in a secure way. This includes performing KYC customer checks (credit and license check) before leasing a vehicle, storing contracts and leasing agreements as well as enabling automated payments as soon as the customer returns the vehicle.
Leverage the Potential of Blockchain for Your Automotive Business through AutoFacets
As the automotive industry is in the nascent change in terms of implementing blockchain technology, it might take some time for industries to embrace it on a full scale. However, if you wish to have an edge above your competitors, the experts at AutoFacets would love to shape blockchain strategies for your business. Drop an email to us on email@example.com and find out about the ways in which we can help.