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BMW PartChain: Blockchain-based Supply Chain Transparency

Sector: Secondary sector · Industry: Automotive industry · Organisation: BMW Group · Maturity level: Pilot

BMW uses PartChain, a blockchain-based platform, to ensure complete traceability of components and critical raw materials in multi-tier international supply chains. The system combines blockchain and cloud technologies from Amazon Web Services and Microsoft Azure to enable tamper-proof data exchange between suppliers. The pilot project launched in 2019 initially included two BMW plants and three Automotive Lighting supplier locations, with planned expansion to ten additional suppliers.

Documentation status

Description

BMW developed the PartChain blockchain platform, operated jointly with cloud technologies such as Amazon Web Services and Microsoft Azure. The system enables tamper-proof tracking of the origin of individual components across all involved partners — previously a highly manual process. Partners can share data efficiently while retaining control over their own data. BMW blockchain lead Andre Luckow describes this as a "classic win-win situation." In 2018, BMW also co-founded the Mobility Open Blockchain Initiative (MOBI) — an industry-wide initiative of 120 leading automotive, mobility, and technology companies.

The BMW Group initiated the PartChain project to track components and critical raw materials seamlessly in multi-tier international supply chains. The problem: the IT systems of many involved partners did not communicate consistently — transparency required high manual effort. PartChain combines blockchain with cloud technologies (Amazon Web Services, Microsoft Azure) enabling tamper-proof, always verifiable recording of all supply chain data. An initial pilot project in 2019 focused on parts tracking in the procurement of front lights. Participants included BMW plants in Dingolfing and Spartanburg (USA) as well as three sites of the supplier Automotive Lighting. The result: the origin of individual parts can now be tracked in detail across all partners at the click of a mouse. BMW planned to roll out to around ten more suppliers in 2020. The long-term goal is full traceability of critical raw materials — especially cobalt for electric vehicle batteries — from the mine to the smelter. BMW leads a working group on supply chain topics within the MOBI initiative (120 companies).

Perspectives

B2B — organisations perspective

Suppliers and BMW plants share data securely and anonymously via PartChain — without fully integrating their own IT systems. This enables transparent supply chain documentation even across company boundaries without revealing trade secrets.

B2C — consumers perspective

End customers benefit indirectly: BMW demonstrated the VerifyCar app in a feasibility study, allowing customers to track their vehicle mileage blockchain-based and share it with third parties if desired.

Employees perspective

BMW Group purchasing experts gain supply chain transparency at the click of a mouse — which previously required extensive manual research. In case of supply chain issues, the cause can be located much faster.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

PartChain is based on a private blockchain solution combined with cloud technologies from Amazon Web Services and Microsoft Azure. This hybrid architecture enables sensitive supply chain data to be stored securely and tamper-proof while ensuring the necessary scalability for international supplier networks.

Implementation examples

BMW PartChain pilot project for front lights

BMW wanted to improve the traceability of complex automotive components in international supply chains while simultaneously creating the foundation for an industry-wide open platform. The company sought a solution for tamper-proof data exchange without revealing trade secrets.

BMW successfully tested the PartChain platform in the purchasing process for front lights with the supplier Automotive Lighting.

The pilot project included two BMW plants in Spartanburg (USA) and Dingolfing as well as three sites of the supplier Automotive Lighting. The blockchain platform securely documented every manufacturing and delivery step of the front lights and enabled all participants to exchange data securely. After the successful test, expansion to ten additional suppliers was planned for the following year.

The solution addressed the lack of transparency in multi-tier international supply chains and the difficulty of fully tracking critical raw materials and components. At the same time, it solved the problem of secure data transmission between different business partners.

Tags

Supply chain, Transparency, Traceability, Cloud integration, Raw materials

Sources

  1. BMW Group treibt mittels Einsatz von Blockchain die Lieferketten-Transparenz weiter voran
  2. VeChain und BMW entwickeln Auto-Sicherheitsplattform
  3. BMW will Lieferketten mit Blockchain transparent machen
  4. Autobauer BMW will weltweite Lieferketten durch Blockchain-Technik nachverfolgen