Mercedes Benz cars―the most desired car of all the elite people in town. May it be a celebrity or a renowned elitist everyone’s first preference is Mercedes Benz. It is unprecedented in its blockchain technology for its desired transparency in the complexity of supply chains. For the joint implementation and development of blockchain technology in the supply chain, a partnership is developed between Mercedes Benz Cars and Icertis.
Wilko Stark, Member of the Divisional Board of Management Mercedes Benz Cars, Purchasing and Supplier Quality believed that the entire procurement process can be revolutionized and the entire value chain could be affected by the blockchain technology. This technology can be altogether a revolutionary process. The complexity of the global supply chains is increasing day by day. The major aim behind the blockchain prototype is to increase the transparency beyond the direct suppliers.
Sabine Angermann, Head of Purchasing and Supplier Quality for Raw Materials and Strategy at Mercedes-Benz Cars believes that the contracts should be transmitted to each member of the supply chain so that co-operation should be maintained between the suppliers and the code of conduct is also maintained.
Icertis and Mercedes-Benz Cars are the leaders with respect to the enterprise contract management solutions and they are teaming up for documentation of the contracts in the supply chain. The understanding and transparent mapping of this transmission across the supply chain is allowed by the blockchain prototype.
A single deviation of the sub-supplier from the contractual obligations becomes visible in the blockchain, which is not different from a secured accounting system. A prototype has been programmed drastically by Mercedes-Benz Cars and a group of experts of the Icertis. The pilot project is also implemented to showcase the acceptance by the suppliers and partners and the attainment of the feedback.
Wilko Stark, a recognizable member of the Divisional Board of Management Mercedes-Benz Cars believed that supply chains have immense value.
A sustainable transaction book can be created by the placement of contract clauses. All participants in the supply chain can retrace the disclosure and confirmation of the Daimler sustainability requirements. The trust in the integrity of the supply chain is created by the prototype. It is ensured that competition relevant information is not revealed and sustainability-related information is not disclosed.
The blockchain prototype makes the purchasing process simpler and safer according to Sabine Angermann.
The success of the project is also ensured by the user-friendly operation of the blockchain service. If blockchain technology is established with all suppliers in the respective supply chain then the goal can be achieved successfully and close cooperation can also be sustained. The level of digitization and the quality of data measures how effective the blockchain is.
Daimler has started using blockchain technology in several domains and has been successful. A project of the Linux foundation for the development of technologies and applications has been made based on the blockchain.