In the face of continuous improvement in production and sales in the automotive supply chain market, how does the blockchain work?

According to media reports, in 2020, my countrys auto industry has bucked the trend under the continued influence of the global new crown epidemic. The production and sales data from January to September have maintained a recovery growth momentum, and have achieved year-on-year growth for six consecutive months. 2.524 million vehicles and 2.565 million vehicles, the year-on-year growth of production and sales was 14.1% and 12.8% respectively, showing a good growth trend. It is expected that the automobile market will continue its positive momentum in the fourth quarter, and the related supply chain market is also booming, and supply chain-related companies are producing at full capacity. The auto sector in the capital market also continued to soar, and the stock price of Great Wall Motors has successfully doubled within three months.

According to the speculation of relevant experts, benefiting from the national six stability and six guarantees measures and the continuous introduction of consumption promotion policies carried out by local government departments, the Chinese auto market is expected to achieve restorative positive growth in 2021.

However, the severity of the international and domestic economic environment cannot be ignored. In particular, the trade war and the second rebound of foreign epidemics have put the auto supply chain in a tight spot. Relevant business expectations, industrial chain risks, and challenges of going out have all increased. Certainty.

Every industry has its supply chain, but the automotive supply chain is a relatively long and complex category. Its supply chain probably involves more than 30,000 parts and components, which can be divided into raw material suppliers, parts suppliers, OEMs and Distributors, including design, production, distribution, marketing, sales, finance, and vehicle services, need to work together to continuously improve the quality and performance of automobiles. However, there are still many problems in the automotive supply chain for a long time.

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The second is the issue of product traceability.On October 17, 2020, according to the National Highway Traffic Safety Administration (NHTSA), Tesla recalled 2,567 vehicles in the United States. According to data provided by the State Administration for Market Regulation, a total of 6,539,512 vehicles were recalled by domestic and foreign automakers in 2019. It can be said that the phenomenon of automobile recall is not uncommon. The risks of airbags, engine crankcase ventilation duct heaters, fuel tanks, front power distribution boxes and other components seriously threaten the lives of consumers. In the case of a huge automobile supply chain, traceability has become a big problem that is time-consuming and laborious.

textUnder the economic globalization, the automobile supply chain is becoming more and more globalized. However, in the current globalized supply chain, information sharing is still not fully connected, and it is in a state of separatism, resulting in the widespread phenomenon of information islands.

Faced with the above problems, blockchain technology can help us solve them. The blockchain + revolution has been successfully applied in industries such as medical care, finance, and intelligent manufacturing. Due to the large market size, the automobile supply chain field satisfies the characteristics of multi-trust subjects, multi-party collaboration, high-frequency transactions, and complete business logic. It is naturally suitable for blockchain technology to play its fists.

As a distributed database, the blockchain has the characteristics of immutability, anonymity, traceability and decentralization, which provide a way to solve the problems of the automotive supply chain.

In terms of design, we can use blockchain technology to connect enterprises in the automotive supply chain network in the form of an alliance chain to create a multi-center, high-efficiency supply chain information system, and in the final product car through smart chips and The blockchain system is connected, and the chip covers important information such as the source of automobile parts, production process, sales channels, maintenance records, etc., and realizes traceability and supervision functions through smart contracts.

textWith blockchain technology as the underlying logic, the characteristics of decentralized distributed ledgers prevent data loss, tampering and forgery risks, and solve trust problems so as to establish a mutual trust mechanism, realize credit transmission and penetration, and ensure the transparency and credibility of the entire link information .

At the same time, blockchain technology can amplify the credit of core enterprises in the supply chain and continuously pass it on to secondary and tertiary suppliers and distributors in the supply chain, effectively solving the fragile external trust problem of small and medium-sized enterprises.

textThrough the form of the alliance chain, the product data of the participating enterprises in the supply chain can be collected and stored in the database. After the data is classified and processed, it will be uploaded to the blockchain, and all parties will participate in the bookkeeping. The confirmed data will be permanently stored on the blockchain. , and at the same time dock with the regulatory authorities to do a good job of database reference and other work. Through the consensus mechanism, the blockchain ensures that the data in the automotive supply chain is consistent and cannot be tampered with, thus ensuring the reliability and security of the data. After receiving the traceability request from consumers, the system can quickly feed back the traceability results. If there is a problem with the vehicle and the consumer gives feedback, the supervisor can quickly identify the supply chain link where the problem occurs by comparing the hash value of the data.

Of course, security issues cannot be ignored. If there are malicious nodes on the blockchain that tamper with the data, the hash value corresponding to the data will change, and the hash value of the corresponding block will also change accordingly, causing the block to fail to be connected and not accepted by other nodes, thereby ensuring supply Chain data security.

Confined to the centralized design of the traditional traceability system, it is extremely vulnerable to hacker attacks. At the same time, traceability requires the cooperation of multiple subjects, which consumes a lot of manpower and material resources, data security is not guaranteed, and the depth of supervision is not enough. The intervention of blockchain only needs to consume a small amount of transaction fees when deploying and calling smart contracts, which can greatly simplify the traceability process and improve traceability efficiency.

textThrough distributed information storage, blockchain can realize the transparency, openness and sharing of automobile supply chain information, and finally form an information architecture with automobile product information flow as the main body, business flow, logistics and capital flow, thereby eliminating Information asymmetry factors enable the sharing of product information, which effectively improves the efficiency of the entire automotive supply chain system and promotes the efficient operation of the supply chain system.

For example, the outsourcing supply chain of automobiles is very complex, including sales channels, manufacturers, and retailers. Since these roles do not have a common data sharing channel, it is difficult to exchange information in the supply chain, causing unnecessary waste and delays. However, if the transformation of blockchain technology is adopted, enterprises on the chain can grasp real supply and demand information, greatly improve the visualization and transparency of the supply chain system, and facilitate decision-making and planning. For the enterprise internally, after its procurement plan, production plan, storage plan, transportation plan and corresponding logistics resources are disclosed and shared on the supply chain information platform, it will be very convenient for other upstream and downstream enterprises to cooperate and share, and realize efficient use of resources. Reduce unnecessary waste.

epilogue

textBy reshaping the trust system, reducing the difficulty of traceability, increasing the efficiency of information sharing, facilitating one-stop liquidation, and improving the depth of supervision, it will surely shine in practical applications.

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