Mercedes-Benz, owned by Daimler AG, has partnered with Icertis, a provider of contract management software for enterprise businesses, to launch another blockchain pilot project. The pilot will focus on analyzing how blockchain can improve the documentation of contracts in supply chain, thereby helping Daimler to explore better third-party suppliers with greater transparency.
A procurement process involves screening of suppliers on the basis of control standards and contractional obligations with regards to human rights, safety, etc. In such cases, blockchain is claimed to enable companies have a more transparent mapping and a clear understanding of process. On a blockchain-based system, whenever a supplier tends to deviate from the originally signed obligations, it will be visible to the parties, thereby preventing such discrepancies.
Wilko Stark, member of the divisional board of management at Mercedes-Benz Cars, has stated that blockchain has the potential to revolutionize the procurement process. He further added that, the company is testing the blockchain prototype to ensure greater transparency in supply chain.