Challenges
- The client needed a solution to speed up the payments cycle to its suppliers.
- The client required a financing application using blockchain technology which could simplify the suppliers’ payment process.
- The earlier process was time taking as it involves the following steps:
- Confirmation of delivery by vendors
- Raising of the physical bill of exchange by suppliers
- Submission of invoice and other documents to the bank for payment
Solutions
- Implemented a financing application using Corda where all the invoices generated in the vendor’s system (ERP) are transferred to the bank over a blockchain, and the bank then initiates the transaction to the suppliers on the due date.
- Implemented notifications mechanism in which the retailers will be notified once the payment has been made to the supplier by the bank on the specified due date.
Tools & Technologies
Corda, Node JS, MongoDB
Key benefits
- Improved the supplier payments process.
- Reduced the bill payment cycle. It came down from 4-5 days to almost real-time, as invoices can now reach the bank as soon as they are generated.
- End-to-end digital process eliminating paper trail and manual intervention.
