Blockchain is a pioneering technology that is likely to become a key growth enabler as the global B2B transaction fabric. The results of blockchain supply chain development when combined with smart contract solutions can be highly effective for operations like procurement and supplier management.
Blockchain can transform all kinds of digital transactions across supply chain operations, especially procurement processes. With a distributed database containing digital transaction tamper records, blockchain and its related applications can create new standards for productivity, efficiency, and security in the supply chain and source-to-pay phase.
Blockchain technology in the supply chain will offer a new level of confidence and accountability, from payments and audits to monitoring inventory and properties, while allowing the procurement-to-pay process to gain enormous operational benefits.
Blockchain sets up enterprises for success through stable contract collaboration, distributed, coordinated information management, digitization, and standardization of the multi-party supply chain.
Why CPOs Need to Explore Blockchain
Consumers’ ever-increasing need drives the supply chain at
the same time to become lean and agile. They are large ecosystems of networks of multiple SKUs from multiple manufacturers, all trying to work together unlike conventional supply chains. To boost the output standards of their supply chain, companies are still pursuing next-generation technology.
Despite developments in digital technology, there is a multitude of problems facing procurement systems, such as accountability, data inconsistency, confidence, and time sensitivity. Processes based on paper are still popular, leading to decreased transparency across networks. To increase the visibility of the supply chain, companies facing these problems use analytics, IT, and big data. Older EDI technologies used in the supply chain are replaced by newer technologies.
Common PTP challenges causing ineffective execution and management of key activities
Reduced accuracy The risk of errors is increased through a manual, paper-based data entry process
Inadequate Visibility Delayed information sharing and accessibility through the supply chain
Invoicing Forged Inexistence of the centralized transaction history
Transactions Postponed Manual processes of routing and sign-off decelerate the payments
Low per-invoice costs Human error resolution increases the cost per invoice