Block Gemini - Voda 1

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

Block Gemini proposed a Blockchain-based CCM platform that integrated with VPC’s existing ERP system. This helped the VPC team to migrate existing “High-Value” offline contracts to a shared Blockchain that relevant stakeholders could securely access. Stakeholders could view contracts, pricing, discounts, vouchers in real-time, negotiate and approve the changes, which were then were recorded on the blockchain. The solution was built on Hyperledger Fabric and hosted on Cloud.

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)

Savings on multi-million euro procurement spend

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)

Savings on multi-million euro procurement spend

Improved Security via Blockchain and greater transparency

Minimizing disputes and streamlining current processes

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