Blockchain Solution For Procure-To-Pay Launched By Accenture In Thailandbr>
Professional services giant Accenture has launched a blockchain solution in Thailand that facilitates the buying and selling of goods for businesses and their vendors.
Dubbed B2P, the blockchain solution, developed in partnership with Thai FinTech firm Digital Ventures, is a fully integrated procure-to-pay solution built on R3’s open-source platform Corda. The solution simplifies the way companies buy and sell goods, make and receive payments, and obtain financing. It can significantly reduce invoice financing time and prevent fraud, resulting in lower cost of financing and longer credit terms. It also reduces the need for physical billing, which can eliminate millions of physical invoices per year.
Accenture said they collaborated with R3 to overcome a series of technical challenges, including integrating multiple systems for purchase orders, goods receipts, invoices and payments, and completed the platform design and implementation in only five months.
“The most exciting part of the blockchain solution is that the outcome is so tangible: the efficiency improvement, the cost reduction and the convenience that all stakeholders have experienced with this platform,” said Divyesh Vithlani, who heads Accenture’s Financial Services practice in the ASEAN region. “This successful outcome is a powerful testament of the collaboration we have with our clients, while delivering value in the market at speed.”
Accenture worked with Thai conglomerate SCG to test the platform. The trial reportedly showed improved efficiency and transparency for all parties across the procurement supply chain process. It helped minimize the potential for human errors and created a seamless integration of purchase orders and invoices between organizations, without the need for reconciliations and adjustments. The platform also makes SCG’s network of suppliers ready to be integrated with Thailand’s e-tax invoice program, freeing up time to perform other value-added activities.
“This is a breakthrough technology that offers a lot of value,” said Orapong Thien-Ngern, Digital Ventures’ chief executive officer. “Given that most supply chains involve a large number of suppliers, the complexity of integrating and reconciling all the different systems from each of the companies can be a costly, daunting and time-consuming task. Blockchain enables parties to securely share all the information without the need for extensive integration between their various technology systems.”
B2P is already in production use with selected SCG suppliers. Vithlani said they expect to be able to scale the blockchain solution and leverage it for other functions beyond just procurement, including order-to-cash, international money transfer and trade finance.