Why Block Chain Is A Must Adopt Technology For Automotive Industry?
by Intellinet Nov 27, 2018
Today most of the people are aware about blockchain technology as hundreds of articles are available on internet. The technology is the latest innovation and currently in use by various industries. So, here in this post we will talk about how it will impact automotive industry. As, automotive industry always remain ahead with advance technologies but the pace of change has accelerated so rapidly, that automotive OEMs are struggling to keep up. Automotive industry is changing by adopting software like electronic part catalogue, but believe it or not blockchain will be the next big that automotive industry will not be able to deny its importance. From the past few years, stakeholders in the automotive industry have been looking for the ways how blockchain technologies can be applied in business to launch major initiatives.
Automobile industry is a complex ecosystem with number of parties included in designing, manufacturing, marketing, distribution, finance and servicing of vehicles. The supply chain in automotive sector is highly complex and ecosystem is broad with different participants like OEMs, parts suppliers, manufacturers and aftermarket suppliers. Disruptive potential of block chain technology for the automotive industry is immense; however it is not a cure-all to solve business problems. In order to deliver real customer value, existing business processes need to be analyzed and solutions need to be design by keeping in mind core concepts such as security, confidentiality and authorization permissions. Block chain technology provides increased transparency across the supply chain and significantly reduces the cost and complexity of doing business with multiple parties. For automakers and suppliers, block chain technology offers unique benefits starting with protecting their brands from counterfeit products to enhancing their brand experience by creating customer-centric business models.
The worldwide post-retail business is expected to develop to over a trillion USD throughout the following 10 years. Over half of this market comprises of sale of spare parts and business is parted over OEM (Original Equipment Manufacturer) and aftermarket providers. Sometimes, OEMs source the item from providers and a similar item is accessible under various brands through shared circulation channels. Agreements are signed between the makers and providers on the volume of the parts that can be delivered. As every part is exceptionally listed on the blockchain, the innovation can be connected to uphold business terms related with the correct part creation volume and timing. This dimension of authorization can likewise be connected for OEMs working with in excess of providers as a major aspect of their double sourcing technique.
SUPPLY CHAIN: An OEM should coordinate successfully with suppliers, logistics people and transportation organizations to guarantee convenient conveyance of parts and advanced inventory dimensions. The whole network is unbelievably complex and consists of various sorts of parts, equipment, programming, and firmware providers, merchants, administrative, insurance agencies, and many more. A system based on blockchain technology would empower more transparency of precise data; enhancing co-ordinations, reducing errors requests and raising stock turns. Different blockchain advances could be connected along various stages. Security, character, and permissioning sway hostile to fake measures in the inventory network; shrewd contracts, prophets, and custom code bolster security and consistence adherence; installments and contracts exchange to speed up compromise of the arrangement and the exchange of cash and resources starting with one partner to the other.
PARTS AUTHENTICATION: Parts that only look genuine get into the production network and land in merchant benefit focuses. These parts frequently flop not long after the portion and thus making harm the automaker and part provider brands. To battle these cheats, automakers have been utilizing various layers of against fraud technology and tasks, yet still through someway fake parts constantly fit into the inventory network.
Blockchain can address this issue by introducing distinctive ID for each part, together with changeless timestamps from when the part is made. These labels associate with the blockchain and can be set into the part to include a dimension of authenticity. Data on legitimacy can be made accessed by the individual who owns the vehicle and confirm which parts have been changed out, to the OEM to more effectively perform reviews, or to the administration focus to flag when a section has touched base at its use limit.
VEHICLE TRACKING: A typical vehicle supplier practice is to offer a showroom vehicle and after that not report the deal to the bank, which had given an advance to the vehicle. This process enables a merchant to have working capital to complete finance related issues. In case the bank gets on, it will make quick move against the merchant. But as the vehicle is sold lawfully, the bank has no claim on the vehicle. In the meantime, the financing to the merchant has been spent and should be discounted. With straightforward access to information, the asymmetry in data that enables this training to goes away. Blockchain give complete straightforwardness and additions esteem as more partners select in.
Spare Parts Liability Resolution: Just in case any spare part is needed to be supplanted due to failure and liability should be built up and this requires tracking the part back. In case parts are distinguished and carefully represented on the blockchain, it offers an exact method to track origin. Risk is clearly settled and is straightforward to all groups in the blockchain. Any obligation debate can be settled quicker and assets can be focused around client well being.
The blockchain technology is can be easily integrated with existing systems of OEMs. As, they can easily integrated it with warranty claim management system, illustrated part catalogue software and many other pre installed software in their system. The interface is very easy to use and surely this will boost the business of OEMs and aftermarket suppliers and dealers, so that they will be able to focus preciously on more revenue generating areas. In case you have any question in mind or need more info about the product, so just connect to the experts at www.intellinetsystem.com . Happy to help always.