Mercedes-Benz is a globally recognized German automotive manufacturer and a division of Daimler AG. The name first appeared in 1926 under Daimler-Benz. In 2018, Mercedes-Benz was the biggest selling premium vehicle brand in the world, having sold 2.31 million passenger cars.
On February 25, 2019, Mercedes-Benz Cars announced the partnership with Icertis, a leading provider of enterprise contract management solutions in the cloud, team up for a strategic partnership for consistent documentation of contracts in the supply chain.
Count on Blockchain Technology
The release states that the blockchain-based prototype and all related developments are the result of the strict Daimler’s requirements to its direct suppliers to vigorously pass on and control standards and contractual obligations with regard to working conditions, human rights, environmental protection, safety, business ethics and compliance. The Blockchain prototype allows a transparent mapping and understanding of this transmission across the entire supply chain.
Should one of the sub-suppliers deviate from the contractual obligations, this becomes visible in the Blockchain, similar to a secure accounting system.
Prototype is Successfully Developed and Programmed
Mercedes-Benz Cars and a number of Icertis experts have successfully developed and programmed a prototype. Acceptance by suppliers and partners is now being tested in a pilot project, and feedback is being obtained.
Member of the Divisional Board of Management Mercedes-Benz Cars, Wilko Stark, expressed:
“Blockchain technology has the potential to fundamentally revolutionize our procurement processes, and could affect nearly the entire value chain. Global supply chains are becoming increasingly complex. With our Blockchain prototype, we are in the first step testing one of diverse possible applications with the aim of increasing transparency beyond our direct suppliers.”
Sabine Angermann, Head of Purchasing and Supplier Quality for Raw Materials and Strategy at Mercedes-Benz Cars, added that:
“The transmission of contracts to each member of the supply chain is the prerequisite of cooperation with our suppliers, especially in terms of sustainability and ethical conduct. The Blockchain prototype opens up completely new ways to make purchasing processes simpler and safer”,
Mercedes-Benz Cars count on blockchain technology for more transparency in complex supply chains. This blockchain-related solution is not the first time when the company uses DLT technology as Daimler has already been using Blockchain technology in other domains.