and Digital Ventures, a fintech subsidiary of Siam Commercial Bank, have co-developed and launched a blockchain solution to allow companies to buy and sell goods, make and receive payments, and obtain financing.
Siam Commercial Bank delves into blockchain with Accenture
The firms claim the solution uses the world’s first integrated procure-to-pay solution on the Corda platform from software firm R3.
The solution was created with SCG, a business conglomerate in the region, using design DevOps principles, along with microservices 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,” says Divyesh Vithlani, who heads Accenture’s financial services practice in the ASEAN region.
SCG says the new platform has improved the efficiency and transparency for all parties across the procurement supply chain process, minimising human errors and integrating purchase orders and invoices between organisations without the need for reconciliations and adjustments.
According to the company’s pitch, this platform can reduce invoice financing time and prevent fraud – made possible by less physical billing and the integration of suppliers into Thailand’s e-tax invoice program, freeing up time to perform other value-added activities.
“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,” adds Orapong Thien-Ngern, Digital Ventures’ CEO. “Blockchain enables parties to securely share all the information without the need for extensive integration between their various technology systems.”
The platform’s design and implementation were completed in five months, overcoming a series of technical challenges, including integrating multiple systems for purchase orders, goods receipts, invoices and payments.
“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 concludes.
