Efficient supply chains of car manufacturers: SAIC GM Wuling

“SAIC-GM-Wuling”, the Liuzhou-based automaker, announced that it is testing ledger blockchain technology in order to reduce operating costs. The company was selected for the pilot test by the Chinese central government, which chose the automaker based on its best-selling “HongGuang Mini EV”.

One of the biggest changes that SAIC-GM-Wuling will bring by exploiting the blockchain is the removal of paper documents and, consequently, of a large part of human errors. The company wants to transfer supply chain information and other important document information in a digital format to be stored on the blockchain. According to initial estimates, this will reduce SAIC-GM-Wuling’s paper usage by more than 10 million sheets of paper annually, resulting in an approximately $ 2.5 million reduction in operating costs.

In addition to cutting down on paper, however, the company believes that a great deal of money will be saved by removing physical human error. The blockchain ledger is reliable and traceable, subverting issues like illegible text on paper, indistinguishable signatures, communication issues in parts supply, and more. Following the SAIC-GM-Wuling pilot test, more carmakers in China are expected to adopt ledger blockchain technology.

Image credit: Qilai Shen, Bloomberg