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Mercedes Benz Writes a New Chapter in Blockchain History

Vladimir C. by Vladimir C.
February 25, 2019
in Latest News
Mercedes Blockchain

Ever since its inception, blockchain had been constantly disrupting more and more industries thanks to its unique set of parameters. Today is a great day in the history of blockchain, as Mercedes-Benz became the first global auto manufacturer to incorporate blockchain technology into its supply chain.

According to a PR Newswire article, the automotive giant launched a prototype of its new blockchain-powered system. The system, which aims to revolutionize Mercedes’ supply chain management, is developed in collaboration with Icetris, an enterprise contract management platform. In short, the blockchain-powered system will allow the automaker to better manage its supply chain and fight against counterfeit hardware that might potentially be installed on its vehicles after purchase.

The motivation behind the new technology

Nowadays, the automotive industry (especially in Germany) is a billion dollar affair which relies on an intricate network of supply chains. Of course, operational inefficiencies and errors cost manufacturers around the world a lot of money.

Mercedes has developed this new blockchain prototype specifically to allow transparent mapping and understanding of the transmission of contracts throughout the entire supply network. The prototype system has been deployed at a few suppliers under a pilot project and, if it proves successful, this will be a very big deal for how the world will view blockchain technology from now on.

Mercedes officials display optimism in regards to the new project

“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 the diverse possible applications with the aim of increasing transparency beyond our direct suppliers.” Wilko Stark, Member of the Divisional Board of Management Mercedes-Benz Cars, Purchasing and Supplier Quality, shortly commented on the matter.

Sabine Angermann, Head of Purchasing and Suppplier Quality for Raw Materials and Strategy also added: “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.”

Tags: BlockchainChainCryptoDailmerMercedesSupply
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