Efficient Automaker Supply Chains

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‘ SAIC-GM-Wuling,’ the Liuzhou-based automaker, announced that it is testing blockchain ledger technology in order to reduce operation costs. The company was selected for the pilot test by China’s central government, which chose the automaker based on its top-selling ‘HongGuang Mini EV.’

One of the largest changes that SAIC-GM-Wuling will make by leveraging the blockchain is the removal of paper documents, and subsequently, a large portion of human errors. The company will transfer its supply chain information, and other important document information, to a digital format to be stored on the blockchain. According to early estimates, this will reduce SAIC-GM-Wuling’s paper usage by over 10 million sheets of paper per year, resulting in an approximate $2.5 million USD reduction in operation costs.

In addition to reducing paper, though, the company believes a large amount of money will be saved by removing physical human error. The blockchain ledger is reliable and traceable, subverting issues such as illegible text on a paper, indistinguishable signatures, miscommunications in parts supply, and more. Following the SAIC-GM-Wuling pilot test, it is expected that more automakers in China will adopt blockchain ledger technology.

Image Credit: Qilai Shen, Bloomberg

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