The Benefit and Challenge of Blockchain Technology for Tracing Automotive Component: a simulation test

Supply Chain Management System (SCMS) poses as one of the essential aspects for distributing component, especially in contemporary Automotive Industries. In this line, the tracing process of the automotive part is one of the critical features required in this industry, such as for automotive product improvement and its forensic. Early research reported that the tracing component feature is prone to component counterfeit that could cause financial loss and even loss of life. The recent studies emphasized that new development technology, commonly renowned as Blockchain is believed to have the ability to perform tracing automotive component and minimize the counterfeit. However, the feature of Blockchain technology is to track automotive component found in the literature mostly. In this frame, the biggest challenge is to obtain the evidence of Blockchain Technology implementation for automotive part component tracking. Therefore, this report paper is a part of design science research stages striving to perform the simulation test by using business process simulation method of Blockchain implementation for tracing automotive components. The focus group discussion involved a manufacturer automotive component, several distributors of automotive components, and two of the big three car manufacturers in the country. The purpose is to understand a comprehensive supply chain management process in the area of automotive component distribution. During the test by using simulation test model, revealed several advantages and challenges. Ultimately, Blockchain technology is potentially implemented for tracing automotive component and the merging combination system between SCMS and Blockchain Technology that contributes to developing new robust SCMS.