One of the world’s main automotive producers has entered right into a strategic partnership to implement blockchain into its supply chain to create larger transparency.
Mercedes-Benz Cars has introduced that it has entered right into a partnership with Icertis, a number one supplier of enterprise contract administration options, to implement a blockchain answer for constant documentation of contracts within the supply chain.
The partnership is a part of Daimler’s supply chain visibility initiative, which requires direct suppliers to “vigorously 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.”
Through a blockchain prototype, suppliers and sub-suppliers’ contractual obligations are mapped all through your entire supply chain and if any of them have been to deviate from these obligations the blockchain answer highlights this. Together with Icertis, Mercedes-Benz is at present testing the initiative in a pilot undertaking.
Wilko Stark, Member of the Divisional Board of Management Mercedes-Benz Cars, Procurement and Supplier Quality attaches nice worth to sustainable supply chains: “Blockchain technology has the potential to fundamentally revolutionise 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.”
Daimler will look to leverage a “sustainable transaction book.” Through this, Daimler can be sure that international procurement and contractual practices meet the “stringent” necessities of Daimler AG.
“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.
The intuitive and user-friendly operation of the Blockchain service platform is critical for the success of the undertaking. Only then the corporate may also help its suppliers to simply get began with the brand new know-how, and appeal to the mandatory customers. Consistently establishing Blockchain know-how with all suppliers within the respective supply chain is a basic requirement for the achievement of the aim: shut cooperation for extra sustainability
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