Mercedes-Benz Cars and Icertis, a provider of enterprise contract management solutions in the cloud, teamed up for a strategic partnership in a bid to push for a more sustainable supply chain using blockchain.

The automotive group requires its 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.

The blockchain prototype allows a transparent mapping and understanding of this transmission across the entire supply chain. Should one of the sub-suppliers deviate from the contractual obligations, this becomes visible in the blockchain.

Another application is the traceability of components and raw materials. Complex supply chains can be disclosed, the origin of which can be traced across the partners involved. The effectiveness of a Blockchain depends on the quality of the data and the level of digitisation. For this purpose, Mercedes-Benz Cars will cooperate in partnership with its suppliers.

Daimler has already been using Blockchain technology in other domains. Since 2017 Daimler has been a member of Hyperledger, a project of the Linux Foundation for the development of technologies and applications based on Blockchain.

Featured image credit: Daimler