In order to revolutionize the way the auto industry’s supply chain is managed, Renault decided to partner with IBM and use blockchain technology and all the many advantages it can bring. The initiative is called the eXtended Compliance End-to-End Distributed (XCEED) project and was developed in collaboration with IBM and is designed to enhance the transparency, efficiency, and security of sharing compliance data across the automotive supply chain. XCEED is meant to archive supply chain and compliance documents, manage large quantities of data to ensure every vehicle component respect strict safety and environmental standards. The project takes a transformative approach in order to create a change towards a more interconnected and reliable compliance verification process in the automotive industry.
Why is it important to be compliant and respect regulation?
In the automotive industry, regulations and compliance are of utmost importance due to the intricate and significant impact vehicles have on safety, the environment, and consumer trust. Every car embodies over 6,000 regulatory features that span the entirety of its supply chain, illustrating the complexity and importance of compliance in every aspect of vehicle production. Renault’s XCEED project, developed in collaboration with industry giants, puts a special emphasis on this critical need by ensuring the conformity of every vehicle component from design to production. By adhering to these strict standards, the industry not only assures securtity of passengers but also meets environmental regulations, which contributes to a more sustainable future. Non-compliance is very risky and has high stakes. This can lead to repercussions such as safety risks, environmental damage and financial losses due to poor quality management. For that matter, Renault is committed to ensuring strong, transparent and efficient compliance management through XCEED. Renault’s vision is not to simply be compliant and meet the standards, but to foster operation excellence, guarantee the certification of vehicle and ensure the automotive industry’s integrity in a world where consumer expectations are very high and regulation is becoming more and more important.
Why did they choose to use blockchain?
The integration of blockchain technology is able to address the challenges in the supply chain industry such as tracking and verifying the compliance of thousands of parts from numerous suppliers. Blockchain’s distributed ledger technology enables a transparent and tamper-proof system, where all parties can access real-time certification of compliance while maintaining the confidentiality of their data. This not only streamlines the process of managing compliance documents but also significantly reduces the risk of discrepancies and increases trust among manufacturers, suppliers, and regulators. The speed and accuracy that can be achieved by using blockchain technology ensures that compliance is not just reactive but proactive, which is important in a world where standards and regulations in the automotive industry are very important. Indeed, Renault made sure to emphasize that compliance is a priority for them. “An innovative platform like XCEED helps us all to be more reactive, robust and sustainable in compliance management. The future of industry will be collaborative and cooperative.” said Odile Panciatici, Vice President of Blockchain Projects at Renault Group.