Industry Leaders Reimagine Procurement and Sourcing Visibility with Smart Contract Management
Icertis, the leading provider of enterprise contract management in the cloud, has developed an initiative together with and for Mercedes-Benz Cars to address sustainability and visibility challenges in supply chain management. The initiative will leverage smart contracts, built on the Icertis Blockchain Framework, to help ensure global sourcing and contracting practices adhere to Mercedes-Benz Cars’ strict requirements for working conditions, human rights, environmental protection, safety, business ethics, and compliance, without compromising contract confidentiality.
As global supply chains become more complex, ensuring contractual commitments to sustainable and ethical practices are met at each link in the supply chain becomes more challenging. Manufacturers want to ensure their suppliers comply to standards and contractual commitments around privacy, sustainability, ethics and labor laws. Suppliers similarly want to prove that they comply, but do not want to expose the details of their subcontracts within the supply chain.
To address these issues, Mercedes-Benz Cars will utilize smart contracts which use a blockchain to create an immutable public ledger of transactions based on the Icertis Blockchain Framework. Mercedes-Benz Cars and its suppliers will place their compliance terms on the blockchain ensuring that the required terms are present in all contracts constituting the supply chain. Visibility of contracts in the chain will be restricted based on privilege so sensitive commercial information will not be exposed. This will ensure the tracking of commitments across suppliers enabling a new level of commercial collaboration, visibility and accountability.
“The challenge of managing a global supply chain has never been higher,” said Monish Darda, CTO and Co-founder at Icertis. “We are delighted to partner with Mercedes-Benz Cars, one of the most innovative companies in the world, to apply our cutting edge blockchain on the ICM platform to address the sustainable sourcing challenge.”
The achievement draws upon the close partnership between Icertis and Microsoft. “Icertis and Microsoft have a long, successful history of delivering innovative solutions that meet the needs of our joint customers worldwide,” says Sanjay Ravi, Microsoft General Manager of Automotive Industry Group. “Using blockchain for supply chain management represents the on-going commitment from Microsoft and Icertis to help our customers digitally transform in meaningful and responsible ways.”
In addition, using the Icertis Blockchain Framework participants will have the option to leverage Icertis’s AI capabilities to automatically verify the contractual obligations around agreed terms, such as sustainability. The technology can also be used to enforce compliance requirements like data privacy (including the GDPR), information security, International Trade in Arms Regulation (ITAR), Foreign Corrupt Practices Act (FCPA) and other regulations.