STUTTGART: Mercedes-Benz Cars and Icertis, a leading provider of enterprise contract management solutions in the cloud, team up for a strategic partnership for a consistent documentation of contracts in the supply chain.
Daimler requires its direct suppliers to pass on and control standards and contractual obligations with regard to working conditions, human rights, environmental protection, safety, business ethics and compliance within the supply chain.
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. 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.
Wilko Stark, Member of the Divisional Board of Management Mercedes-Benz Cars, Procurement and Supplier Quality attaches great value to sustainable supply chains: "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."
The placement of contract clauses in the Blockchain creates a sustainable transaction book. The disclosure and confirmation of the Daimler sustainability requirements can be retraced by all participants in the supply chain. This ensures that global procurement and contractual practices meet the stringent requirements of Daimler AG.
Daimler has already been using Blockchain technology in other domains. 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.
