Supplier Relationship Management – The benefits of combining Blockchain technology & Automation
Updated: Aug 14, 2022
Recent fluctuations in demand across multiple industries and manufacturing disruptions that are well documented has brought challenges and increased focus to the supplier onboarding process.
The task of validating and onboarding new suppliers is a pain point most organisations have experienced. It’s an admin heavy process and one that is riddled with inefficiencies. It is one that can often take over 30 days to process and it is often a very ‘point-to-point’ process often meaning duplication and unnecessary delays. In a world that has availability issues across multiple industries this is simply unacceptable.
Adopting a Blockchain platform can digitally establish the identity of suppliers in a credible and trusted platform. Adding Smart Contracting to this process achieves further process enhancements, reduces operational costs and provides further benefits which current, traditional processes fail to recognise.
Smart Contract technology allows governance of data exchange between a Blockchain platform and ‘actual’ operational processes. Smart Contract applies conditional scenarios and automated responses. Specific outcomes can be applied to the supplier evaluation process can therefore be applied. This technology therefore enhances contractual flow meaning automation and obligation scenario become a reality.
Applying Blockchain and Smart Contracting provides the following benefits:
· Streamlines processes and increases efficiency
· Ensures compliance and regulations are met and proven
· Tracks data and workflows in a real time environment
· Has the ability to reduces time to activate new suppliers from >30 day average to <7
· Due to creation of Blockchain platform there is no need for intermediaries and therefore reduces cost and opportunity for human error
· Every change or update is recorded and historical data cannot be lost
At The Vision Chain our expertise in Smart Contracting, Blockchain, Automation and Supply Chain management allows us to evaluate, propose and implement the best solution for your organisation. Contact us via our website www.TheVisionChain.com or email phil@TheVisionChain.com to discuss.