5 benefits of using Blockchain technologies in your Procure-to-Pay Process
By now, most people have heard of cryptocurrency, digital or virtual currencies which include coins like Bitcoin, Ethereum, and smaller Alt-coins. Cryptocurrency fast became an investor favourite (maybe not so much recently!) and has increasingly been adopted in business and the mainstream market. Many of these decentralised currencies have been built on the blockchain, a storage system which stores information in a digital format.
Blockchains maintain a secure and centralized record of transactions which guarantees security and removes the need for a third party. To improve the speed of transactions and security, blockchain technology is being used in i2B’s procure-to-pay processes.
Traditional procure-to-pay operations have been plagued with inefficiencies and have historically been time-consuming, but with newly developed software that incorporates blockchain features, transactions can be more transparent, benefit from better security, and are at less risk of theft or misappropriation.
Using blockchain functionality for procure-to-pay operations can bring many benefits, including:
1. Streamlined processes
Manual procedures and time-consuming processes such as paper-based data entry can be streamlined by incorporating blockchain technology into supply chain ordering and payment systems. With the ability to improve validation and the addition of authentication tools, things like sign-off processes or manual routing could be a thing of the past. With better access to information across the supply chain, information can be retrieved more easily and payments will not be subject to typical transfer delays.
2. Faster onboarding
Vendor and client setup may be accelerated by the secure verification processes driven by blockchain technology. The enhanced speed and accuracy of digital verification mean that onboarding steps can be completed faster and the centralized storage of user documents allows for immediate access and retrieval. Clear visibility and reliable transaction history create enhanced trust among shared stakeholders and being able to view shared public IDs and ratings generates a higher level of confidence and reliability.
3. Quicker Ordering and Settlements
When compared to standard ordering and payment processes, transactions exchanged on the blockchain occur at a much greater speed. Things like decreased lead times and faster vendor sourcing can be valuable tools in supply chain management and procurement. Processing purchase orders and receipt data transfer can be handled much more quickly than with current business practices. Having real-time access to financial information can give complete transparency to payments or settlements, and may even remove the need for time-consuming invoice processing practices or allow transactions to be reviewed without the need for reconciliations.
4. Secure transactions
Blockchain technology when used for procure-to-pay purposes brings a higher level of financial security and reduces the risk of things like data breaches, malicious attacks, or money laundering. With permanent real-time access to transactional information, data is protected from tampering, and suspicious behaviour can be identified quickly. Payments or transfers of money managed across the blockchain benefit from a fast distribution with improved security that can help monitor and eradicate fraudulent activity.
5. Robust Audit History
With information stored and verified for every single transaction, blockchain transactions are retained in a digital ledger. Goods and supplies can be visibility monitored through every point of the supply chain with end-to-end visibility, providing an exceptionally accurate audit trail. The information which is stored in cloud-based, blockchain-supported systems is virtually tamper-free and hack-proof. Something which is currently a challenge for procure to pay processes to efficiently manage across a multi-faceted supply chain. As blockchain technology evolves to bring even more transparency and enhancements.
i2B’s software benefits from reduced operational speeds, better security, and reduced workloads. For those seeking improved efficiencies in terms of security, transparency, and authentication, blockchain technology may just be the answer.
To find out more about how i2B is utilising blockchain technology reach out to our team below and one of i2B consultants will be in touch.