Accenture has co-developed and launched a blockchain solution in Thailand, through an alliance with Digital Ventures, a fintech subsidiary of Siam Commercial Bank.
The offering is designed to simplify the way companies buy and sell goods, make and receive payments, and obtain financing.
Leveraging Accenture’s expertise in distributed ledger technology, the digital solution was created with SCG, a business conglomerate in the ASEAN region, using design thinking, agile methodology and DevOps principles, along with micro-services and cloud technologies.
Digital Ventures’ Blockchain Solution for Procure-to-Pay, also known as “B2P,” is already in production use, handling transactions with selected SCG suppliers.
“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, head of financial services across ASEAN at Accenture.
“This successful outcome is a powerful testament of the collaboration we have with our clients, while delivering value in the market at speed.”
For Vithlani, results from the work at SCG have shown that the new platform has "improved the efficiency and transparency" for all parties across the procurement supply chain process.
According to Vithlani, the solution helped minimise the potential for human errors, while creating an integration of purchase orders and invoices between organisations.
Furthermore, Vithlani said the platform can “significantly reduce” invoice financing time and prevent fraud, resulting in lower cost of financing and longer credit terms.
Delving deeper, it also reduces the need for physical billing, which can eliminate millions of physical invoices per year and makes SCG’s network of suppliers ready to be integrated with Thailand’s e-tax invoice program.
“This is a breakthrough technology that offers a lot of value,” said Orapong Thien-Ngern, CEO of Digital Ventures.
“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.”
Accenture and Digital Ventures completed the platform design and implementation in five months, collaborating with R3 to overcome a series of technical challenges, including integrating multiple systems for purchase orders, goods receipts, invoices and payments.
According to Vithlani, the project "solidifies" Accenture’s position as a leading blockchain innovator and partner in the ASEAN region.
“We expect to be able to scale this innovative blockchain solution and leverage it for other functions beyond just procurement, including order-to-cash, international money transfer and trade finance,” Vithlani added.