Mercedes-Benz Cars and Icertis, a leading provider of enterprise contract management solutions in the cloud, have teamed up to create consistent documentation of contracts in the supply chain using Blockchain technology.
Daimler AG, Mercedes-Benz Cars parent
company, requires its direct suppliers to vigorously pass on and control
standards and contractual obligations related 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.
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. Confidential information is not visible. The prototype creates trust in the integrity of the supply chain by disclosing sustainability-related information, without revealing competition relevant information.
Another application is the traceability of components and raw materials. Complex supply chains can be disclosed, the origin of which can be traced across the partners involved.
The intuitive and user-friendly operation of the Blockchain service platform is crucial for the project’s success. Consistently establishing Blockchain technology with all suppliers in the respective supply chain is a fundamental requirement for the achievement of the goal – close cooperation for more sustainability.
Mercedes-Benz Cars and Icertis experts have developed and programmed a prototype and are awaiting feedback from suppliers and partners testing the technology in the pilot project.
Source: Daimler
