Mercedes-Benz Creates Blockchain Pilot to Find Genuine Third-party Suppliers

Mercedes-Benz, a notable German automobile brand, has designed a blockchain-based platform that will handle complex supply chains and make them more sustainable and transparent.
This new development came as a result of the partnership the car brand entered into with Icertis, a software company based in the United States, after conducting a series of blockchain trials in the past.

The Purpose Of The Pilot Project

Mercedes-Benz disclosed that its partnership with Icertis has been a success with the development of a blockchain prototype that will make it easier for contracts and documentation to be stored in complex supply chains, giving Daimler AG, the owner of Mercedes-Benz, the right tools to vet third-party suppliers.
In the course of the procurement, suppliers are vetted in terms of contractional obligations and control standards with regards to safety, working conditions, human rights, etc.
According to the press release, the project facilitates that creation of a sustainable and transparent mapping of grouped documents across the whole supply chain. The next phase of the pilot project has now commenced, which is the testing phase.

Blockchain Technology Promotes Transparency

By utilizing the blockchain technology, companies could enjoy more transparent mapping and understand better how this transmission across the supply chain works. If one of the suppliers fails to observe its initial contractual obligations to the letter, it will be revealed on the blockchain.
Speaking on the complex nature of modern supply chains, Wilko Stark, member of the divisional board of Management at Mercedes-Benz stated that within the blockchain technology resides the power to transform its procurement process essentially.

“Blockchain technology has the potential to fundamentally revolutionize our procurement processes […] Global supply chains are becoming increasingly complex. With our Blockchain-prototype, we are in the first step testing one of the diverse possible applications with the aim of increasing transparency beyond our direct suppliers.”

Not A Blockchain Novice

Daimler has gained a level of experience when it comes to blockchain technology as its previous blockchain trials have led to this present pilot.
Since 2017, the corporation has identified with Hyperledger, a Linux Foundation Project aimed at simplifying the development of applications and technologies related to the blockchain.
Also in the same year, Daimler worked together with Landesbank Baden-Württemberg (LBBW) to complete a financial transaction using blockchain technology.
According to a September 26 report from the previous year, another top German automobile manufacturer, Porsche AG, has revealed its plans to invest more in startups that are blockchain-related to “gain access to trends, new technologies, and business models.”

Related posts
BinancebnbusdChangpeng ZhaocryptocurrencyDOGEdogecoinDOGEUSDNews

Binance’s CZ Is A Huge Fan Of DOGE Yet He Holds None

Dogecoin – the virtual asset which started as a parody of Bitcoin – has so far metamorphosed into a reliable store of value for some. The comedic cryptocurrency has been doing well since its inception in 2013 majorly as a…
cryptocurrencyCryptocurrency NewsIndiaNews

India’s Crypto Ban Implementation Will Now Be Decided By Individual Banks

The National Payments Corporation of India (NPCI) – an umbrella organization in charge of operating retail payments and settlement systems in India – has made a decision not to place a ban on crypto trading in India, leaving it to…
Apartmentscryptocurrencyfrancis suarezIvanka TrumpMiamiNewsReal EstateSolidBlock

Ivanka Trump's luxury Miami apartment block accepting crypto for condos

With the cheapest condo listed for more than $10 million, Miami’s Arte Surfside luxury apartments are now aimed at crypto millionaires and billionaires. Luxury Miami apartment Arte Surfside will now accept cryptocurrency as a form of payment for its remaining…