Mercedes-Benz will use Blockchain Technology for its Supply Chains!
by Alexander Romero 
Mercedes-Benz will use Blockchain Technology for its Supply Chains!
The Luxury car manufacturer Mercedes-Benz continues to develop a full blockchain system.
The newest blockchain system that is being developed between Mercedes-Benz and Icertis will make easier to manage the supply chain for car production.
It will also help to eliminate the problem of counterfeit car parts that come into the car.
Mercedes-Benz Luxury car manufacturer says that it will help trusting many auto parts manufacturers, helping them to produce and track parts by using blockchain technology in the supply chain.
The bigger these chains, the bigger the difficulty in managing them as volume is increasing.
Which, if not well maintained, will cause problems in the production of the car and may make their products flawed.
That is why they have to use Blockchain technology.
They firmly believe that their blockchain prototype will make the production process more transparent.
It also makes it possible to understand all production contracts throughout the supply chain.
This experiment system seems to be no different from other blockchain when the manufacturer of the spare parts has failed to follow the agreement to produce the spare parts.
That information will appear on the blockchain immediately.
At present, the prototype has been developed and Mercedes-Benz has selected 2-3 parts manufacturers to help test this system.
Mercedes-Benz is collecting more information and is awaiting approval of the parts manufacturer including other partners before launching the full version of the blockchain system.
Mr. Wilko Stark, member of the management board of Mercedes-Benz Cars in Purchasing and Supplier Quality has said that:
“Blockchain technology has the potential to revolutionize our procurement processes and may affect almost all supply chains.
At present, the global supply chain system is becoming more complex.
With our prototype Blockchain system, we are in the first step of testing one of the many possible applications.
With the goal to increase transparency over our direct suppliers.”
Mrs. Sabine Angermann or the head of procurement and supplier control said:
“Sending contracts to each member of the supply chain is a prerequisite for cooperation with our suppliers. Especially in terms of sustainability and ethical principles, this blockchain model will make the buying process easier. And safer ”
In addition, the new system will allow all partners to check the material used in the production of spare parts of the car as well.
Because the real impact of the Blockchain system depends on the quality of large amounts of data, Mercedez-Benz has to find a way to talk to these spare parts manufacturers to get the benefits that fit both sides and that may take a while to achieve.
Blockchain technology is therefore gradually establishing itself in all economic and industrial sectors, and cryptocurrency payment will also become more and more common among the general public.
Blockchain technology provides access to new technical progress and also saves resources for businesses in a variety of economic activities.
