Blockchain technology proved itself to be a fast, secure and transparent protocol for data transfers and accountability. But integrating it in a non-fintech business is no easy task. Nevertheless, more and more companies are focusing on blockchain innovation, and Mercedes-Benz joins the blockchain train.
Being one of the largest automotive companies in Germany, and a renowned name, Mercedes-Benz opened the doors to the blockchain, announcing a partnership in blockchain technology tailored to the need of transparency in the complex automotive supply chain.
With the primary motive of automotive perfection, Wilko Stark, a member of Mercedes-Benz’s divisional board of management stated that the new technology could radically change the entire supply chain and add value in each step of it. “Our mission is to deliver transparency at every level of car production. With the blockchain prototype, we can monitor and improve the complex global supply chain,” Stark added.
The team behind the new project said that blockchain would allow completely transparent monitoring of the processes involved in the supply chain. “If one of our sub-suppliers does not execute its obligations in the contract, we can all see it and take proper actions.” the team added.
By utilizing blockchain, the division of Daimler is hoping to create its contract clause database, ensuring a transparent transaction book. This move will help Daimler to improve their sustainability requirements and trace them down to the smallest link in the supply chain. Personal data is also taken care of utilizing blockchain – confidential information is hidden, and users see only the essential bits.
Building an ecosystem
For the blockchain prototype to indeed take its place, every link of the vast supply chain of Mercedes-Benz has to operate with the blockchain. Sabine Angermann, head of Purchasing and Supplier Quality at Mercedes-Benz, believes that the transmission of supply chain contracts is a great way to build an ecosystem around their products. From the showroom to the finished car – everyone will have the ability to check the progress on the blockchain.
For the ecosystem to work, however, each link has to know exactly how to use the new software. There is a pilot project already running, with suppliers and partners in the supply chain added as active users. The goal is to obtain as much feedback as possible before scaling the project.