How Volkswagen builds supply chain efficiency via industry-wide data exchange

An industry-wide data exchange network aims to establish data standards for the entire automotive value chain and Volkswagen is taking the centre stage. The carmaker will become is pursuing the goal of creating uniform standards for data flow across industry.

Currently, the union has 25 partners from across the automotive value chain. Volkswagen expects that the cross-company, secure and antitrust law compliant data exchange will result in new opportunities, thus increasing efficiency and transparency for production and supply chains. "Data is a key driver for Volkswagen on the path to becoming a sustainable digital company and can become even more important, if we share certain data across corporate boundaries," says Gerd Walker, Head of Production and Logistics at the Volkswagen Group.

Volkswagen says that it will use its experience gained from the networking of its global factory structure with the cloud into the development of the data infrastructure of Catena-X. The data exchange platform will work on specific applications ranging from supply chain optimization to business partner master data management.

With Catena-X collaboration, Volkswagen also sees potential for expansion of its Industrial Cloud that could in turn facilitate faster development of software applications based on industry standards. Industrial Cloud enables Volkswagen's partners and suppliers to connect with its sites as well as provide industry applications within the open platform. The carmaker's involvement in Catena-X will further enhance networking of its global value chains with more than 40,000 suppliers and partner companies.

Volkswagen is also a part of International Data Spaces Association (IDSA) and the European cloud data infrastructure GAIA-X. The carmaker says that for many years now it has been committed to establishing uniform data standards within the automotive industry and beyond.

Volkswagen can also use data protection and data sovereignty principles in Catena-X from its learning from other such associations. Other carmakers that are a part of the Catena-X group are BMW and Mercedes-Benz.