Mercedes-Benz will use Microsoft cloud to boost digital transformation

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Microsoft and Mercedes-Benz announced a working partnership to connect the MO360 data platform to Microsoft's cloud service. The German automaker is looking to greatly boost its car manufacturing efficiency and thinks connecting its global car plants together can help a more seamless production pipeline.

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MO360 is a digital production ecosystem made up of multiple software applications that are able to share interfaces and standardized user interfaces. Many elements of MO360 were already in place at various factories, but will now be consolidated for a more holistic approach to utilizing digital solutions.

When implemented properly, the data platform can identify supply chain bottlenecks when information is collected through the entire production lifecycle - from logistics and supplies to the assembly line, and then finally when the vehicles hit the dealerships. This virtual simulation allows operations managers to test different processes before trying them on the shop floor.

In addition, there is more room for cross-functional collaboration among different teams inside of Mercedes - so production teams are able to hear feedback and ask for recommendations before possible problems snowball.

Here is what Joerg Burzer, member of the board of management of Mercedes-Benz Group AG, production & supply chain management:

"This new partnership between Microsoft and Mercedes-Benz will make our global production network more intelligent, sustainable and resilient in an era of increased geopolitical and macroeconomic challenges. The ability to predict and prevent problems in production and logistics will become a key competitive advantage as we go all electric."

There is a growing connection between tech companies and automakers as vehicles undergo dramatic digital transformation. These opportunities expand beyond in-car solutions for drivers, and for the automaker to maximize their production capability. The ongoing chip shortage causing problems for major car manufacturers further motivated them to develop relationships with tech companies that may be able to help.

Mercedes introduced MO360 a couple of years back: