Gearing up the Auto Industry towards Robust and Futuristic Blockchain Powered Solutions

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Automotive Industry

The automotive industry has always been one of the early adopters of advanced technologies, which certainly has paved way for innovation. Since, automotive companies have to constantly deal with evolving customer requirement while keeping a track of changing market demands to remain competitive, they would require having in place a robust mechanism that can address some of the major challenges facing the automotive industry including payments, data privacy, claim processing and supply chain visibility. Blockchain – A shared ledger technology offers the right technology infrastructure required to address the pain points of the automotive industry while ensure greater efficiency through process automation.

How Can Blockchain Help?

Vehicle Recalling: In the current scenario, recall notifications are being issued to customers by manufacturer’s when they sense defect in delivered vehicles. While this is a proactive step towards road safety, the entire process is extremely cumbersome, costly and time-consuming as manufacturers fail to make unique identification of each and every part. With a Blockchain based system in place, manufacturers will be able to easily identify every part, which in turn will remove inconvenience for customers while save time and provide higher cost savings to manufacturers.

Counterfeiting: One of the major issues that plagues the automotive industry is the intentional substitution of original spare parts of vehicles with counterfeit parts by garage and service center owners. This affects the brand reputation of the manufacturer as most of the times these counterfeit parts underperform or at times malfunction. A Blockchain based track and trace system can be leveraged to track the provenance of these spare parts right from their point of their origin till the end users by validating each and every step in the supply chain. This helps in quick identification of counterfeit parts.

Processing of Claims: Processing of insurance claims in the automotive industry is an extremely slow, difficult and cumbersome process, which largely impacts all the parties (policy holders, insurers etc.) to a claim. By issuing insurance policies and claims on Blockchain, an immutable audit trail is established, which can later be used for streamlining and automating the processes. The smart contract functionality of Blockchain (with pre-defined terms and conditions) would trigger the contracts resulting in easy and quick processing of claims.

Quicker Transactions: The process of making payments to the manufacturer is extremely time-consuming in the automotive sector. The delay in payment is caused as a result of inefficient payment process that involves multiple parties. With a Blockchain based system in place, automatic and secure digital payments can be enabled. In fact, Blockchain enables increased sharing of authenticated information amongst the participants, quicker processing of documents while reducing the settlement time before payments are received by the manufacturer.

Why Sofocle?

As leading players in the Blockchain arena, Sofocle offers robust Blockchain powered solution (sofoChain) that can mitigate the pain points of automotive industry while improve visibility across the supply chain. Using the smart contract functionality, sofoChain automates and streamlines the processes while create an ecosystem where all the involved parties can easily interact with each other that too without any restriction.

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