One of the biggest changes we’re seeing now in procurement, especially in enterprise software, is people’s expectations increasing based on their personal experience outside. Currently procurement is seen as a gatekeeper, ensuring that nobody does anything wrong. By and large, most people want to follow the rules. They just don’t know what the rules are.
Businesses don’t have a platform that makes decision-making easy, enabling them to get the job done sooner, faster, better. And that happens when the user experience is acceptable and where procurement is no longer viewed as a gatekeeper. That is the fundamental shift that has to happen, procurement has to start thinking about itself as an enabler, not a gatekeeper. That’s the fundamental shift.
By and large the world of Enterprise applications has moved from the traditional ‘Transactional based Systems’ to ‘Collaborative Solutions’. It’s a major leap particularly in Procurement where there is a large stake around ‘Improved Profitability’. Procurement has seen the evolution of ‘Supplier Collaboration Portal’ where we see the buyers and suppliers able to transact on a common platform.
Compared to the B2C market, the success rate of a ‘Supplier Collaboration portal’ is relatively easier with one major buyer and several suppliers on-board. The volume of transactions and the value is going to be multi-folded, which also brings in the ‘Trust factor’ of the parties involved in the whole cycle.
In a world of disruption, not many prefer it to happen it their backyard. Changing of the existing systems will always be a challenge. Many a times it’s a big NO!
So, here’s what we thought – how about making the collaboration portals ‘Smarter’?
With RekoChain, our smart supplier collaboration portal – we’re able to bring a business network to the existing procurement world. Aided by Artificial Intelligence, Machine Learning and Analytics we will be able to control the spend, provide effective costing and can also share the aggregated set of data. The ability to post from anywhere by anyone within the network makes the chain more valuable and more digital. Not only that, we transpose the human element of trust — the gentleman’s handshake, the chit of paper and the promise to pay that’s largely existed and has built 100+ years of trade.
Internet is the enabler and Blockchain relies wholly on internet and therefore can be everywhere. We not only chain the Smart Contracts of parties within the network but also do assist with product traceability. Another key factor about Blockchain is that it’s going to reduce friction in global B2B. I always like to say if you just accelerated B2B payments by a few days globally, you would open up Gross Domestic Product (GDP) and economies would start growing drastically. This friction around assets has a direct link to how slowly money moves around the globe, the overall cost and friction from that.
Another major concern in the Procurement world is ‘double financing of the pipeline’. Current caveat of having the banks finance invoices two, three or more times and incorrect declaration for transfer pricing, can be handled with absolute transparency and transactional trust using Blockchain. World Wide Ledger will be the path moving forward and blockchain will be able to assist in achieving it.
RekoChain built on Hyperledger Blockchain is an all-in-one solution transforming the procurement industry, the procurement space, the processes of procurement for our customers both buyers and sellers.