• Coins 2,371
  • Markets 14,172
  • Market Cap 341,242,625,726
  • 24h CMC -6,392,595,516.86
  • 24h Vol 61,702,120,663
  • Dominance BTC 64.37 % | ETH 9.99 % | XRP 5.41 % | 

Mercedes Benz to tap Blockchain for Efficient and Sustainable Supply chains

Image courtesy: Logistics Bureau

As per a press release on February 25th, Mercedes Benz has developed a blockchain based platforms for getting sustainability and transparency in complex supply chains. For the same the leading German automobile brand has partnered with Icertis, a US based software enterprise for building the supply chain use case. The synergy will accordingly allow for simplified storage of contacts and documents in complex supply chains. The press release also mentioned that both the parties have entered the testing phase of the pilot project.

Supply Chain Management and Role of Blockchain

Wilko Start, a member of the divisional board of Management Mercedes-Benz believes that the entire value chain can be transformed by incorporating distributed ledger technology. He further mentioned that the project is one of a kind as it seeks to bring forth transparency beyond their direct suppliers. 

As per the statement Daimler AG, a German multinational automotive corporation and the owner of Mercedes Benz has already been tapping blockchain’s prowess. In 2017, Daimler AG and Landesbank Baden-Württemberg (LBBW) used blockchain to execute a  €100 million "corporate Schuldschein" transaction, in lines with regulatory compliances. 

As a matter of fact, Daimler requires that its direct suppliers hold on to strict control standards and contractual obligations. These include ensuring business ethics, compliance with the supply chain and non-violation of human rights. The prototype will allow for efficient mapping and transmission of the supply chain. If in case a supplier decides to falter on contractual obligations it is easily visible on blockchain.

"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," 

says Sabine Angermann, Head of Purchasing and Supplier Quality for Raw Materials and Strategy at Mercedes-Benz Cars. 

Earlier this month Itochu Corporation,  on of the largest general trading enterprises announced that it is developing a blockchain-based traceability system. This system will allow consumers and sellers to keep track of transactions on supply chains with help of smartphone app. 

In February Toyota partnered with MIT’s media lab enlisted a set of partners specializing in different facets of distributed ledger technology, in order to apply it to the automobile industry. 

Also, in February 2018,  Oaken Innovations from Dallas and Commuterz from Tel Aviv started developing blockchain apps for vehicle access, car payments and car pooling.