Sohu: Alliance is the Best Path to Promote the Release of Blockchain Industry Value

2020/09/02

On August 28, the Third China Industry Blockchain Summit came to a successful conclusion in Changsha. This event was organized by the Blockchain Application Branch of China Federation of Logistics & Purchasing. As the vice chairman unit, China Capital Logistics Co., Ltd. (hereinafter referred to as “China Capital Logistics”) organized National Logistics and Supply Chain Blockchain Summit Forum 2020 and Automobile Industry Blockchain Application Seminar under the summit. Zhou Zishan, the Deputy GeneralManager of China Capital Logistics, was invited to attend this event. Wang Xingmin, the Director of Information Management Center of China Capital Logistics, delivered a keynote speech entitled Practice of Logistics Alliance Based on Blockchain Technology and jointly probed into the effective methods of blockchain technology, automobile industry integration development and value release.

China Capital Logistics has inherent advantages in exploring the combination of blockchain and automobile industry chain. Founded 12 years ago, the company provides services to customers covering the upstream and downstream of the automobile industry relying on the industrial resources of BAIC Group. Through the business network of China Capital Logistics, blockchain technology can penetrate into all aspects of the industrial chain and can be improved correspondingly.

As a logistics enterprise that runs through the automobile industry supply chain, China Capital Logistics has a deep understanding of the problems in the automobile industry supply chain. Wang Xingmin, the Director of the Information Management Center of China Capital Logistics, proposed in his speech to use blockchain technology to establish a supply chain sharing service platform meeting the automobile industry development to integrate the procurement, production, logistics, sales and supervision links and realize the efficient collaboration of the entire supply chain. However, from the perspective of promoting the development of the entire automotive industry, the establishment of blockchain relationship based on the blockchain requires the multi-party participation and collaborative construction on the industry chain, and it shall be developed toward the direction of alliance. With the gradual rise of the Industrial Internet and the expansion of digital transformation into the industrial economy, the alliance will promote the integration of coordination, integration and value chain of industrial resources to the greatest extent.

Wang Xingmin mentioned in the speech that the purpose of building alliances based on blockchain is to jointly build a distributed digital ecosystem and achieve a win-win situation for all participants. The blockchain technology has outstanding advantages in building a decentralized and credible alliance model: In the data governance and sharing, it can not only achieve data privacy protection, but also ensure that data is not monopolized; in ecological governance and incentive of alliance, the alliance is a new open and trustworthy co-construction, win-win mode for obtaining the income based on the contribution degree; in promoting the efficient transfer of value, the alliance can effectively address the bottlenecks in restrictions of information flow, capital flow and logistics based on the features of automobile industry chain such as long chain, long cycle and multiple participants to achieve the efficient transfer of value in the industry chain and the marginal income of overall industry chain; in the construction of diversified business applications, it can bring new opportunities for business innovation, model innovation and value creation.

At the end of 2018, China Capital Logistics, together with Shanghai Wanxiang Blockchain Co., Ltd. (hereinafter referred to as “Wanxiang Blockchain”), and Development Bank of Singapore (China) Co., Ltd. (hereinafter referred to as “DBS”) released the “Transport Supply Chain Alliance- Automobile Supply Chain Logistics Service Platform” based on the blockchain technology. This platform is the first implementation case of blockchain technology in the vehicle logistics industry of China. The application scenarios of blockchain technology in the logistics field are mainly in four aspects: Process optimization, logistics finance, logistics credit investigation and logistics tracking. The transport alliance platform mines the scenes in the whole process of automobile supply chain,has formed scene applications including electronic waybill, electronic cargo label tracking, supply chain financing service and quality damage evidence. The industrial resources are linked by overcoming the industrial difficulties and the supply chain costs and efficiency are optimized through resources integration. Under the guidance of alliance idea, China Capital Logistics currently cooperates with Wanxiang Blockchain, Changan Minsheng APLL Logistics and Great Wall Ant Logistics to carry forward the “Transport Chain Alliance” industry cooperation, which is the first attempt of blockchain alliance development in the automobile industry.

The blockchain technology has been applied in practice from a hot term in the industry. Zhou Zishan, the Deputy General Manager of China Capital Logistics, pointed out that in the process of exploring the value empowerment of blockchain in the industry, theblockchain technology needed to be closely integrated with the industrial development and various industrial nodes. The automobile industry has the features of multiple nodes and wide ranging with long chain and multiple entities. To carry forward the application of the blockchain in the automobile industry chain, two problems need to be solved: Firstly, the information barriers between the various entities in the chain need to be broken through. In the long term, breaking through the barriers between entities actively promotes the internal collaboration efficiency upgrading in the automobile industry chain and introduction of external financial and technical resources. Thus, entity enterprises on the automobile supply chain should also actively participle to jointly promote it; secondly, a unified industry standard is lacked in the process of promoting the implementation of blockchain in the automobile industry. Due to the lack of the standard guidance, it is difficult to reach a consensus within the industrial chain, which is not good for promoting the actual application of blockchain technology, so multiple parties need to participate in it. Based on the characteristics of the automobile industry chain, a consensus-approved blockchain application standard in the automotive industry has been formulated.

Zhou Zishan said in his speech that costs reduction and efficiency improvement are eternal topics in the optimization of the automobile supply chain, and the development of alliance is a trend. The growth of "Transport Chain Alliance" led by China Capital Logistics cannot be achieved overnight. It also requires the support of multi-party support and collaboration. Through continuous iteration, it can better meet the development needs of the automobile industry development and release greater value in the development of the automobile industry.

(Source: Sohu)