Mercedes Benz Adopts Blockchain For Transparent Supply Chains
auto-maker Mercedes Benz owned by Daimler AG is piloting a blockchain project seeking
to ensure more transparency in the complex supply chain in partnership with
Icertis a leading provider of enterprise contract management solutions in the
Mercedes Benz Cars and Icertis have successfully developed and programmed a prototype. The pilot looks at how blockchain technology would aid in documenting contracts in supply chain and allow Daimler to vet third party suppliers.
“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 transparancy beyond our direct
suppliers.”, Wilko Stark, Member of the Divisional Board of Management
Mercedes-Benz Cars, Purchasing and Supplier Quality
“Complex supply chains can be disclosed, the origin of which can be traced across the partners involved. The effectiveness of a Blockchain depends on the quality of the data and the level of digitisation. For this purpose Mercedes-Benz Cars will cooperate in partnership with its suppliers.” Daimler statement reads.
This would not be the
first time Daimler AG has adopted blockchain technology, since 2017 Daimler has
been a member of Hyperledger a project of the Linux Foundation for the
development of technologies and applications based on blockchain.
The firm has also jointly with Landesbank Baden-Württemberg (LBBW) used Blockchain technology to execute a financial transaction: Through LBBW, Daimler launched a €100 million ($113.6m) “corporate Schuldschein” in parallel with the process that is required by regulatory authorities. The entire transaction was digitally carried out via Blockchain technology.