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