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Blockchain Use Case: Automotive Contract Manufacturing

Melissa Bradbury
Product Marketing Director

It’s no secret that the benefits of blockchain are being seen across a wide variety of industries.  This shouldn’t surprise anyone with benefits such as accelerating business processes and reducing costs and risk.  The manufacturing industry alone is full of use cases for blockchain, including:

 

  • Real-time tracking of goods throughout the transportation process
  • Recording of important data across the supply chain
  • Certifying the authenticity of products across the supply chain
  • Sharing of IoT data across disparate systems of record

 

One great example of blockchain in manufacturing is automotive contract manufacturing.  The process of building a car often begins with the original equipment manufacturer or OEM.  The process might look something like this:

 

The stakeholders in this case are:

  • An OEM: Original Equipment manufacturer to product parts, such as a company like Bosch
  • A car Manufacturer like Toyota
  • A third party logistics (3PL) company to organize the transit
  • A trucking company to bring the cars from the ports to the dealers
  • The car dealer, perhaps Toyota of San Francisco, that sells cars to consumers

 

These parties most likely all have different systems of records.  Each of these stakeholders has blocks of information stored in their system of record during this contract manufacturing process.  In the blockchain, all information can be accessed by any permissioned stakeholder at any time.  The resulting process could look something like this:

 

Each of these parties needs to know, real-time if anything happens during these supply chain processes.  The quicker the parties are alerted to any issues, the faster they can be resolved so as not to delay the process.  A Blockchain based system connected with IoT sensors would provide permissioned parties with a real-time and transparent end-to-end view of vehicle location and status.  Smart contracts can also be used if a certain parameter goes over a pre-defined threshold (e.g. continuous vibration for a certain amount of time).  These smart contracts can then trigger a follow-on activity such as a reorder of the damaged parts, etc.  Alerting parties as the damage occurs can provide them with extra time to resolve the issue.

 

The benefits of this manufacturing blockchain system include:

  • Improvement of just-in-time logistics
  • Reduction in errors or damages
  • Reduced lead times due to enhanced processes, especially on build-to-order vehicles

 

All these benefits can, in turn, be passed on to the customers in the form of faster delivery and even cost savings.  There is no question that blockchain can be beneficial in a number of manufacturing use cases.  If you are working on an interesting project related to the use of Blockchain for the manufacturing industry, feel free to get in touch by leaving a comment or contact us with your use case. We’d be glad to help you connect with our subject matter experts and with your industry peers who may be working on similar use cases with Oracle.

You can also learn more about the Oracle Blockchain Platform and try it for free

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Comments ( 1 )
  • Sunidhi Singh Wednesday, October 3, 2018
    Great presentation of Blockchain form of blog and Blockchain tutorial. Very helpful for beginners like us to understand Blockchain course. if you're interested to have an insight on Blockchain training do watch this amazing tutorial.:-https://www.youtube.com/watch?v=lf5d-R8-N20
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