Volkswagen and blockchain startup Minespider are setting up a pilot project to achieve transparency in the global supply chain for lead. Blockchain technology makes it possible to trace the raw material back to the point of origin by means of digital certificates and the Volkswagen Group plans to use this technology for further raw materials and their supply chains.
Supply chain transparency is a major issue in many industries, including the automotive sector. Responsible raw material procurement is fundamental for sustainable mobility. Going forward, Volkswagen will be using blockchain, the technology behind various cryptocurrencies, to ensure more transparency and security in the supply chain. Starting in April, Volkswagen will be collaborating with Minespider to trace the supply chain for lead from the point of origin to the factory. The point of origin will be either the mine or the recycling source. The pilot project will involve suppliers and sub-suppliers that deliver more than two-thirds of the Group’s total lead starter battery requirements.
The collaboration Between Volkswagen and Minespider is the outcome of a “Hackathon for Supply Chain Transparency” held in 2018, where Minespider came out on top. During the event that is one element of the Volkswagen Group’s corporate citizenship, some 100 experts from various disciplines worked together to further develop innovative, digital solutions for more supply chain transparency. The hackathon series continues in 2019.
Head of Strategy Group Procurement Philippi:
“We will use this technology to make our processes more transparent and secure.”
- Optimizing supply chains
- Eliminating sources of error
- Guaranteeing social and ecological standards
Also published on Medium.