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Global Spare Parts Supply Chain with Blockchain

Sector: Tertiary sector · Industry: Warehousing and logistics services · Organisation: Deutsche Post DHL Group, Nissan · Maturity level: Pilot

Deutsche Post DHL Group has launched a blockchain project together with automotive manufacturer Nissan for global spare parts supply chain management. The project aims to improve transparency and traceability in the complex global supply chain for vehicle spare parts. Initial projects have already started and are intended to modernize the traditionally inefficient handling of spare parts deliveries.

Documentation status

Description

TradeLens was developed in 2018 by IBM and Maersk (the world's largest container shipping group) as a joint blockchain platform for sea freight logistics. Deutsche Post DHL was a strategic partner of the network. TradeLens immutably recorded all shipment events (loading, port arrival, customs clearance, unloading, delivery) on the blockchain.

International container trade is one of the most paper-heavy processes in the world: a ship with 20,000 containers can involve 10,000 different actors and 30 organisations; each handover point generates paper documents forwarded by fax, post or email. TradeLens digitised this process: each party (port, customs, shipping company, freight forwarder, recipient) enters shipment events directly into the platform; all see the same blockchain-secured status. Deutsche Post DHL saw TradeLens as a strategic enabler: Handelsblatt reported in 2021 that DHL was one of the leading logistics companies in blockchain-based trade facilitation. TradeLens peak: 300+ network members, 600+ million documented shipment events. Tragically, TradeLens was discontinued in December 2022 — IBM and Maersk stated that commercial viability as an independent platform was not given. No competitor could fully take over the network; since then, the industry has operated without a comparable blockchain alternative.

Perspectives

B2B — organisations perspective

Logistics providers and exporters can share shipment status in real time through blockchain-based freight documentation — all parties see the same immutable status without complex bilateral coordination.

B2C — consumers perspective

End customers can track their spare parts orders in real time and receive reliable delivery dates. The improved transparency builds trust and significantly increases customer satisfaction.

Employees perspective

Logistics staff receive precise real-time information about all shipments and can respond to customer enquiries immediately. Automated documentation reduces manual effort and allows employees to focus on value-adding activities.

Benefits

General

B2B — organisations

B2C — consumers

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

Blockchain technology makes it possible to document every movement of spare parts through the supply chain transparently and immutably. The decentralised data base creates trust between the various actors such as manufacturers, logistics service providers and customers, without the need for a central control authority.

Implementation examples

DHL-Nissan Blockchain Spare Parts Logistics

Traditional spare parts logistics suffers from a lack of transparency, media discontinuities and inefficient manual processes. Blockchain technology is intended to solve these problems and increase the efficiency of the entire supply chain.

DHL has developed a blockchain system for worldwide spare parts supply together with Nissan and has launched initial projects.

Deutsche Post DHL Group, in collaboration with the Japanese automobile manufacturer Nissan, is implementing a blockchain solution for global spare parts logistics. The system documents every step of the supply chain immutably and creates complete transparency for all parties involved. The first project phase focuses on integrating existing systems and standardising data formats between the various actors.

The system eliminates information losses between the various actors in the supply chain and automates previously manual documentation processes. Customers and partners receive real-time information about the status of their spare parts orders.

Tags

Supply chain, Transparency, Spare parts, Automotive, Tracking

Sources

  1. Blockchain: Wie Deutschlands Post den Welthandel vereinfacht