Mercedes-Benz Cars partners with Icertis to implement blockchain and create sustainable supply chain

One of the world’s leading automotive manufacturers has entered into a strategic partnership to implement blockchain into its supply chain to create greater transparency.

Mercedes-Benz Cars has announced that it has entered into a partnership with Icertis, a leading provider of enterprise contract management solutions, to implement a blockchain solution for consistent documentation of contracts in the supply chain.

The partnership is 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 throughout the entire supply chain and if any of them were to deviate from these obligations the blockchain solution highlights this. Together with Icertis, Mercedes-Benz is currently testing the initiative in a pilot project.

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"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." said Wilko Stark, Member of the Divisional Board of Management Mercedes-Benz Cars, Procurement and Supplier Quality. "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" and through this, it can ensure that global procurement and contractual practices meet the “stringent” requirements 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," said 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 significant for the success of the project. Only then the company can help its suppliers to easily get started with the new technology, and attract the necessary users. 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