Mercedes-Benz Becomes Interested In Blockchain For Supply Chain
The German automaker Mercedes-Benz is working on its own blockchain system, which can later be used in its complex supply chains, according to a press release.
This is the company’s first development related to blockchain. Mercedes-Benz, together with an American company Icertis, has created a prototype of the decentralized platform. It is noted that the partners have already launched pilot tests and are waiting for feedback.
First of all, Mercedes-Benz is going to use blockchain to organize work and monitor the transparency of supplies. For example, if one of the subcontractors evades its obligations, it can be tracked in the system.
The corporation plans to put contracts with suppliers and other documents in the new system, which will resemble a secure accounting book. Also, records on blockchain will allow tracking the origin of particular components and raw materials.
Wilco Stark, a top manager at the company, said that blockchain technology will fundamentally change the procurement procedure and may alter the whole value chain. However, the supply is only one of the possible applications of the technology, he stressed.
In 2018, another leading German corporation Porsche announced its intention to invest more than $175 million in startups related to distributed ledger technology and artificial intelligence. Thus, the company seeks to gain access to new trends and business models.
Previously, General Motors started the cooperation with a blockchain startup to improve data management.