How is Blockchain Disrupting Procure to Pay processes?

Ever since Blockchain came into being it has been disrupting business processes and reshaping the way Gen Y businesses are being carried out. In fact, the transactions carried out on a Blockchain are extremely transparent, secure and efficient than legacy systems.

Blockchain has not just evolved as a powerful means of carrying out financial transactions, but also offers a robust solution for streamlining processes while them more efficient. For instance, Procure to Pay (P2P), Crowdfunding, Global payments, etc., which are extremely important in the economic order of today, and which in the past had been characterized by disarray, disorganization and chaos.

One of the key areas where Blockchain is assumed to play a key role is P2P. In a widely distributed world where materials are often found in one part of the world, the labour in another, while the assembling is carried out in yet another part of the world, P2P is extremely important. It is a multi-step process in which the client connects with one or more service providers.

Or in other words, it is primarily the process of procuring all the materials required for the manufacturing of a product or the provision of a service. However, certain inherent challenges in the traditional P2P set up such as the lack of transparency between stakeholders, and execution of contracts on a real-time basis, come in the way of the processes being carried out to their optimum capacity. These can be taken care of by blockchain consulting firms.

This is how Blockchain provides value to procure-to-pay processes:

· Accelerates purchase order management

· Improves validation and authentication while prevents fraudulence.

· Can accelerate the settlement making process

· Reduces the risk of money laundering as the history of payment information is maintained permanently.

· Fosters greater trust among stakeholders

· Makes transactions more secure

· Invoice processing is made more vigorous

· Produces a strong audit trail

· Enhances the liquidity of collateralized assets

· Automates the execution of contracts in real time

· Facilitates discounting by buyers/financers

· e-Invoicing Blockchain provides transparency.

Final Words:

Across the world, organizations are transitioning their P2P to the Blockchain. It is estimated that this could greatly benefit them as the process gets streamlined. However, before diving in to the new technology, it is essential that the organization fully assess the costs and the returns. As one of the leading players in the Blockchain space, Sofocle helps enterprises in easing the complexities associated with the procure to pay processes by creating an ecosystem wherein trade partners can interact with one another without any hinderance and in a transparent way.