Mercedes Benz will be managing its auto parts supply chain on a Blockchain network. The DLT, which is in its prototype phase, has been developed with the technical input of Icetris and it will also enable the German car maker to fight the use of counterfeit parts on their cars.
This move will make Mercedes Benz be the pioneer global auto manufacturer to apply Blockchain technology for sustainable ledger books management that is fundamental to a critical and vulnerable supply chain operation.
Icetris is an enterprise that offers management solutions on a contract basis. In this case, the platform is capable of simplifying the supply chain of Mercedes Benz that is very complex and outdated.
About The New Mercedes Benz Supply Chain
Mercedes Benz, like any other major automaker, relies on an extensive supply chain to get hardware parts for its vehicle manufacturing. Because of its large nature and complexity, the supply chain tends to have errors and operational inefficiencies.
At this point, Blockchain technology streamlines the on-platform operations by eliminating the challenges. The strategy that the new platform will offer includes comprehending the transmission of contracts in the ecosystem as well as allowing transparent mapping. Any supplier who contravenes their contract will be noted on the system and appropriate action taken. It is more like a Blockchain powered financial or accounting system.
Each part will have its distinctive identification and a time stamp to track each product from the producer to the dealer or company.
The Project Is In Its Pilot Phase
The prototype is ready and Mercedes Benz is now conducting a pilot program with a few suppliers. The feedback from the participants is expected to inform the decision of suppliers and partners on rolling out a fully-fledged Blockchain platform.
Wilko Stark, a Mercedes-Benz Cars Member of the Divisional Board of Purchasing and Supplier Quality, believes on the merit of Blockchain technology in revolutionizing the supply chain. Wilko reaffirms that DLT could transform procurement processes to increase transparency on the suppliers’ part.
Additionally, the Head of Purchasing and Supplier Quality for Raw Materials and Strategy, Sabine Angermann, believes that the Blockchain-powered supply chain is a prerequisite for ethical conduct and sustainable cooperation between suppliers and Mercedes Benz.
Further, the new platform offers a simpler and safer purchasing process for the car maker. It will also be ideal for tracing components and raw materials.
To make the project successful, the company is in talks with suppliers to try and figure out ways of making the data to be of high quality to meet Blockchain standards.
The End Result Is Quality Mercedes Benz Cars
This Blockchain program is aimed at countering phony hardware. Since DLT is immutable, decentralized, public, and open sourced, auto parts of subpar quality will be identified, traced to the suppliers as well as get declined.
Apart from protecting the manufacturing process brand new cars, the platform will also be used by dealer service centers who are at high risk of being duped by suppliers.
The system will make it easier for the dealer and company to recall vehicles affected by faulty auto parts, as well as allow car owners to ascertain the quality of vehicle parts.