Mercedes-Benz Hopes To Join The Blockchain Bandwagon With Prototype For Sustainable Supply Chains

In a press release that was published earlier today, German car manufacturer and innovator, Mercedes-Benz announced that they had partnered with Icertis to develop and hopefully launch a sustainable transaction book with the aid of blockchain technology.

This pilot platform aims to bring the organization towards more transparent processes, greater accountability and subsequently more sustainable supply chain practices into the car manufacturing industry. According to the company, this initiative is currently being tested and approved by their partners and suppliers.

Since the information is available all throughout the chain, if any part of the process is against protocol, it becomes visible via the blockchain.

Talking about the countless applications of blockchain for the organization, a member of the Divisional Board of Management Mercedes-Benz Cars from the Purchasing and Supplier Quality department, Wilko Stark,“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 diverse possible applications with the aim of increasing transparency beyond our direct suppliers.”

Another great benefit of this initiative that was listed in the press release was the greater autonomy and responsibility with regards to  sustainable practices that Mercedes-Benz’s suppliers would have.

With blockchain technology the entire supply chain operation from raw material to delivery of finished good can be properly tracked and digitized, thus available for the consumer to access as well.

According to Sabine Angermann who is the Head of Purchasing and Supplier Quality for Raw Materials and Strategy at Mercedes-Benz Cars, “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.”

The press release concluded with the fact that the organization behind Mercedes-Benz, Dalmier has already been involved in using blockchain based solutions as they view it as having quite a lot of “potential down the value chain.” Previously, the organization has used blockchain technology to carry out multiple transactions.


Komal Zaheer

Writer. Procrastinator. Bra Burning Feminazi. Likes to make people laugh. Student of Journalism.

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