Case Studies | Telecommunications

Leveraging Blockchain to create a collaborative procurement contracting tool

Client:

Block Gemini - Voda 1

Vodafone Procurement Company

Challenges:

  • Manual updates became very time consuming
  • Updates were vulnerable to human errors 
  • Multiple versions of the same contracts existed
  •  Lack of digital price repositories
  • Catalogue 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

VPC (Vodafone procurement company) manages around 1000 high-value contracts as part of the 50,000 overall contracts and procures more than 60000 items involving more than 5000 suppliers, serving 30 local markets. These numbers are expected to grow in the future. The VPC team identifies high-value contracts and manually updates contractual terms which are not only time consuming, but also vulnerable to human errors. This created bottlenecks in processing & monitoring of data and affects future planning. Contract processing also involves identifying and preventing value leakages, which is also a manual and costly affair as CCM accounts for 30% of their time.

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 catalogue process was highly manual and labour intensive.

Our Solution Approach

Block Gemini proposed a Blockchain-based CCM platform integrated with VPC’s existing software legacy system. This helped VPC team to migrate existing “High-Value” offline contracts to a shared Blockchain that every party can utilize to securely view contracts, pricing, discounts, vouchers in real-time, negotiate and approve the changes that will be captured on a Blockchain. The solution was built on Hyperledger Fabric and hosted on Cloud. 

Block Gemini - Contract with Pen

The contract management platform provides a new way to draft and agree on prices for better understanding between the stakeholders. Our inbound integration with ERP systems helped them in receiving actual Purchase Orders and Invoice Information from SAP to Price Manager. This helped Vodafone to increase the efficiency and maintain the data secured.

The End Results

Vodafone now runs a Blockchain-based CCM platform. This allowed 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 reduced contract lead time from a week to almost instant.

90% Increase

in catalog back-office efficiency (FTE)

Savings

on multi-million euro procurement spend

Improved

Security via Blockchain and greater transparency

Minizied

Minimizing disputes and streamlining current processes

Minimized

Minimizing disputes and streamlining current processes

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