Acclaimed for transforming the supply chain ecosystem, the B2P blockchain solution for procure to pay (P2P) impacts it for good through all the phases. A blockchain-driven P2P solution streamlines the operations and verifies the purchase orders (PO), goods received, and invoices. Taking it even ahead, all relevant parties get access to data in real time.
Let us see how B2P blockchain solution for procure to pay has helped boost the supply chain operations:
Improving business liquidity
One of the common problems suppliers face is the illiquidity of payments. For instance, they would never know when a payment gets stuck for any reason like unavailability of data, absence of the concerned person in the office, or such other. Payments that get delayed can create a problem of cash flow.
Sure, suppliers have a solution to taking the approved invoices to the banks and getting the payment. Banks would themselves later receive money from the procurer. However, in adverse economic conditions, banks may refuse to cough up the payments. Suppliers who failed to pay on their own durables for some reason are more likely to face refusal from banks.
Blockchain-based B2P for procure to pay would provide associated parties with real-time access to a database storing all the relevant information that is pre-verified. All purchase orders issued by the procurer would be released on the blockchain and would immediately be visible to the supplier. When the procurer receives the supplies, they would acknowledge the receipt of goods on a blockchain-based system. Similarly, the invoice becomes visible to the supplier when it is issued.
The system does away with any requirement for manual verification of the procurement. All the information required is up there on the blockchain and pre-verified, thus improving liquidity for the supplier. Moreover, as all the information is pre-verified, suppliers won’t face a problem in getting the payment from banks as well.
Stretching of the procurement net
Though businesses of all sizes can face the issue regarding procurement, it becomes a big problem, especially for larger enterprises. If there is a sudden procurement, finding the right vendor always becomes an issue. Failure to find the right vendor may result in the purchase of expensive or substandard goods. It becomes a challenge for the staff to find a suitable and cost-effective supply chain solution.
A B2P blockchain solution for procure to pay helps companies to find the right supplier in considerably less time. The technology encourages various companies to join hands and create a common database that they all can use for procurement. This not only stretches the procurement net of the enterprises but also brings down the time of sourcing things.
Dealing with threats of unauthorized access
In most companies, transactions in the supply chains go unmonitored. The gap between different processes in procurement leads to inefficiency. The system has to handle various security threats and attacks. Blockchain-based B2P for procure to pay can handle these issues with clinical efficiency.
Drawing information from a large database serving an array of companies, the system authorizes and authenticates the vendors. The permissioned system prevents occurrences of information breaches and enables the management to maintain a constant vigil.
Compliance with regulations
Thanks to globalization, the compliance requirements associated with P2P processes have become increasingly complex. Companies with global units have to take into account the regulations of multiple countries where they operate. With the B2P blockchain solution for procure to pay, compliance can be ensured through the smart contracts, which makes the system automated and fully reliable. The manual efforts regarding compliance are done away, eliminating costly errors.
The feature of immutability in blockchain serves as a proof of process. Recording of all company’s actions and procedures immutably in a blockchain acts as an audit trail for the regulators. The technology allows regulators to have read-only, real-time access to the supply chain of the organizations, practically eliminating any chances of a company escaping compliance.
Making procedures paperless
An outcome of the implementation of blockchain technology in P2P is the elimination of paperwork or, at the least, reducing paperwork to the minimum. When everything is recorded on a distributed ledger accessible to everyone on the network, it does away with the requirement of a paper trail.
Blockchain eliminates the need for paperwork in the authorization and authentication process in procurement.
Saving time and reducing costs
Replacement of human executives with automated smart contracts brings down the processing time significantly and improves accuracy. It helps companies reduce the number of human resources working curtail expenses under the salary head.
Enterprises are also able to save on ancillary costs like setting up work stations and arranging for other necessary support system. Businesses can re-use the money saved for expanding their products and services, research and development, or improving the quality of their stuff. In the long run, it helps the companies to strengthen their position in the market.
The ills troubling the supply chain process are alleviating, owing to B2P for procure to pay solutions. It improves business liquidity, makes the whole procedure paperless, saves time, reduces costs, and helps ensure timely payments.
Blockchain offers real-time access to relevant information, verification of data, integration with ERP, and advanced payment matching. It helps companies deal with problems in unscheduled procurement, threats of unauthorized access to information, and compliance-related issues.
At Antier Solutions, we conduct in-depth research and deploy an innovative approach to roll out a blockchain-based supply chain solution successfully. As a forward-thinking organization, we adopt the latest technologies that can offer immense benefits to businesses. We are working on providing blockchain solutions to the clients for improved security, accuracy, and reliability.
If you are planning to build a B2P blockchain solution for procure to pay, connect with our subject matter experts to share your business needs.