Improving the sourcing of products within all supply chains will help to improve the entire supply chain efficiency and trust. Blockchain technologies will help to:
- Improve supplier trust and openness – sharing data and analysis together
- Showing the history across the entire ecosystem
- Being able to enhance the supplier comparisons, ensuring better and more accurate sourcing decisions are made
“Sourcing is a fairly complex business process with stakeholders from cross-functional teams. Supplier bids are collected using online sourcing events, but a large part of the sourcing evaluation and award process is manual in nature. Using blockchain for through all steps of the process — proposals, quotes and bids — or auction, can offer greater efficiency and transparency. The adoption of new technology, tools or techniques should be evaluated based on the savings opportunities and sourcing complexity.”
“Blockchain will empower the buyer with the means to ensure authenticity and traceability of all goods throughout the purchasing cycle. Verifiable audit trails of suppliers’ goods will be established. Critical supplier credentials, certificates and qualification statuses will remain immune from forgery and other compromise.”
Improved sourcing benefits and outcomes
Improving the procurement process with Blockchain technology, offers some great benefits to non-supply chain organizations and projects.
“Despite advancements in digital technologies, procurement processes are plagued with a plethora of challenges such as transparency, data inconsistency, trust, and time sensitivity. Paper-based processes are still common, resulting in reduced transparency across networks. Companies facing these challenges are using analytics, IT, and big data to improve supply chain visibility. Newer technologies are replacing older EDI technologies used in the supply chain.
One of the best possible solutions for the transformation of procurement organisation has been Blockchain, which has catapulted into popularity due to Bitcoin and other cryptocurrencies.
Companies have been keen to use this due to the various features it offers such as secure collaboration for contracts, distributed and synchronised information management, and digitisation and standardisation of the multi-party supply chain.