Case Studies | Telecommunications
Leveraging Blockchain to create a
collaborative procurement contracting tool
Client:
Vodafone Procurement Company
Challenges:
- Manual updates were time-consuming.
- Updates were vulnerable to human errors.
- Multiple versions of the same contracts were being maintained.
- Lack of digital price repositories
- The catalog process was highly manual and labor-intensive.
Approach:
- Blockchain-based Commercial Contract Management platform.
- Integrations with existing legacy systems.
- Multi-stakeholder access and edit capabilities with permissions.
Results:
- 90% increase in catalog back-office efficiency (FTE)
- Savings on multi-million euro procurement spend
- Security via Blockchain and greater transparency
- Minimizing disputes and streamlining current processes
Client Challenge
Vodafone Procurement Company (VPC) manages around 1000 high-value contracts as part of the 50,000 overall contracts, and procures more than 60,000 items involving more than 5000 suppliers, serving 30 local markets. And these numbers are expected to grow in the future.
The VPC team used to identify high-value contracts and manually update the contractual terms which were time-consuming and vulnerable to human errors. Contract processing also involved identifying and preventing value leakages, which was again manual and time-consuming, accounting for almost 30% of their time. This created bottlenecks in the processing of contracts and affected future planning Another challenge faced by VPC was that they and their suppliers maintained multiple versions of the same contracts during the negotiation and reconciliation processes, which resulted in longer contract lead times and value leakages. To manage all these processes there was no digital pricing repository and, the cataloging process was highly manual and labor-intensive.
Another major problem that is faced by the Vodafone Procurement Company (VPC) is that they along with their suppliers maintain multiple versions of the same contracts, during the negotiation and reconciliation processes which results in longer contract lead time and value leakages. To manage all these processes there was no digital pricing repository and the catalog process was highly manual and labour-intensive.
Our Solution Approach
The contract management platform provided a new way to draft and agree on prices for better understanding between the stakeholders. Our inbound integration with their ERP systems helped them in receiving actual purchase orders and Invoice Information from SAP to the Price Manager solution. This helped VPC to increase the efficiency and maintain the data secured.
The End Results
Vodafone now runs a Blockchain-based CCM platform. This allows Vodafone entities and its suppliers to agree on the prices governed by business and compliance rules that enforce the clauses, retrieve the item prices, apply vouchers and identify any value leakages in any of the agreed-upon contracts. Furthermore, this solution enables greater visibility and cross-party transparency on contractual terms and reduces contract lead time from a week to almost instantly.
90% Increase in catalog back-office efficiency (FTE)
Improved Security via Blockchain and greater transparency
Minimizing disputes and streamlining current processes
The End Results
Vodafone now runs a Blockchain-based CCM platform. This allows Vodafone entities and its suppliers to agree on the prices governed by business and compliance rules that enforce the clauses, retrieve the item prices, apply vouchers and identify any value leakages in any of the agreed-upon contracts. Furthermore, this solution enables greater visibility and cross-party transparency on contractual terms and reduces contract lead time from a week to almost instantly.
90% Increase in catalog back-office efficiency (FTE)
Improved Security via Blockchain and greater transparency
Minimizing disputes and streamlining current processes
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