Digital Ventures teams up with SCG to launch worlds first B2P digital procurement on R3 Blockchain platform

Stocks and Financial Services Press Releases Wednesday September 12, 2018 15:54
Bangkok--12 Sep--Siam Commercial Bank

In yet another creative and innovation technology move, Digital Ventures Co., Ltd. – a Fintech subsidiary of Siam Commercial Bank has teamed up with SCG to embark on the latest procurement solution, with the launch of world's first fully integrated Blockchain Solution for Procure-to-Pay (B2P) on R3 Blockchain. Aiming to boost efficiency at every procurement step for every supply chain network, from upstream to downstream, the move is a collaborative learning and development pilot project which has been tested with selected SCG supply chain networks since mid-August before expanding to include all business groups. This B2P project will also be adopted as a prototype for other solutions to increase the effectiveness of overall supply chain management through private sector cooperation with SCB's business partners.

SCG Corporate Administration Vice President Mr. Yuttana Jiamtragan said that, "With its visionary commitment to always bringing innovations and solutions to consumers, SCG has embraced an open-collaboration approach to working and learning together with other firms to develop new technologies, processes, and products, having realized that technology, particularly digital-related technologies, are an integral part of everyday life. With its radical adaptability accumulated over the years, cooperation with experts in many areas will enable SCG to adopt new digital technology and innovations with strong potential to eliminate limitations in traditional business practices, while strengthening its foundation for SCG's sustainable growth.

To further develop business efficiency with digital technology, SCG has teamed up with FinTech leader Digital Ventures to apply R3 Blockchain technology to build this world's first fully integrated digital procurement platform. Conventional procurement requires a tedious verification process involving time, manual work, and paperwork preparation, including the logistical costs involved in document delivery back and forth for both buyers, sellers, and other business partners. This new technology will let SCG's supply chain network, from upstream to downstream, enjoy convenience, security, and transparency. It will also serve as a common ground for the development of other processes and align Thai industry standards with the Thailand 4.0 mission. This collaborative project will initially be selectively tested with the supply chain networks of some SCG businesses before expanding to cover all business groups."

Digital Ventures Co., Ltd. Chief Executive Officer Mr. Orapong Thien-Ngern said that, "With its strong potential and expertise in technology development, the Company has been entrusted by leading regional business conglomerate SCG as a partner for studying, testing, and developing innovations to enhance the efficiency of the procurement process for the optimal benefit of all parties involved. This is a good opportunity for an official launch of world's firstBlockchain Solution for Procure-to-Pay (B2P) on R3 Blockchain technology, which has been tested in the real environment with SCG in the past month. This advanced platform incorporates every procurement step, beginning with placing purchase orders all the way to making payments. This new development is truly in line with the national e-Tax Invoice policy driven by the government for every sector."

Meanwhile, Digital Ventures Co., Ltd. Technology and Innovation Managing Director Mr. Paisal Kiattananan said that, "This newly developed B2P platform has applied blockchain technology to better improve the traditional procurement process. With outstanding features in terms of security and transparency, the system will enable all parties involved in the procurement process to view each step simultaneously. The system will automatically help verify documents, such as purchase orders, goods receipts, and invoices, significantly increasing efficiency while reducing resource consumption."

The B2P platform has been designed with a humanized interface and experience concept which are truly in line with user requirements, ensuring that users will enjoy a satisfactory experience with ease of use in every function. This is the evolution of procurement, created by Digital Ventures and SCG, and jointly developed with Accenture leveraging its best-in-class international Blockchain expertise and in support of Digital Ventures in its long-term strategic goals.

Following implementation and trial use of the B2P platform for some selected SCG businesses for about one month, the new procurement solution helped speed up transactions and reduce resources throughout the process by more than 50%. Once each transaction is approved, SCG counter parties will instantly receive payments on due dates. The new platform will also quicken invoice financing requests, which can be submitted instantly online, while enabling the Bank to expedite its approval process as all documents can be reviewed on the system. It is expected that the B2P platform will help SCG and its suppliers reduce resources throughout the process, such as paper and speed, to lower business costs, while increasing efficiency to the optimal level when the platform is expanded to fully cover all SCG units.

"The development of this B2P platform represents yet another major milestone for Digital Ventures, which is committed to in-depth technological study in a bid to drive FinTech innovation for the country. The platform also adopts blockchain technology for financial services to increase efficiency for private firms using supply chain networks. In the future, B2P will be seamlessly integrated into the business ecosystem, allowing firms to benefit from an improved procurement process, reducing costs and increasing operational performance for the benefit of the overall economy", concluded Mr. Orapong Thien-Ngern.


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