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Blockchain technology in Supply Chain reduces at least 1.5% in overbilling

48% of organizations have admitted to being overbilled by their suppliers, and blockchain technology can help reduce that number. In a new report, it was found that implementing blockchain technology in the supply chain could help reduce instances of supplier overbilling by 1.5%.

The report, which was conducted by KPMG and the University of Toronto, surveyed 100 senior executives in the supply chain space. Of those surveyed, 48% said they had been overbilled by their suppliers at some point. When asked how blockchain could help reduce instances of overbilling, 42% of respondents said it would help improve transparency and visibility in the supply chain.

While 1.5% may not seem like a lot, it can add up to significant savings for organizations. For example, if a company with a $1 billion supply chain is overbilled by 1%, that’s $10 million that could be saved by using blockchain technology. Implementing blockchain in the supply chain can also help improve other areas such as traceability, security, and efficiency. For instance, Walmart is already using blockchain to track food items throughout its supply chain to ensure safety and quality. If you’re interested in

Blockchain can improve efficiency in 28% and reduce overbilling in 1.5%

Over the past few years, blockchain technology has been hyped as a transformative tool that can have a major impact on various industries. One of the most promising applications of blockchain is in supply chain management, where it has the potential to improve efficiency by 28% and reduce overbilling by 1.5%.

Blockchain technology can help to streamline the supply chain by providing a decentralized platform for tracking and managing data. This can reduce the need for manual record-keeping and make it easier to track items as they move through the supply chain. In addition, blockchain can help to reduce fraudulent activities such as overbilling, by providing a transparent and tamper-proof record of transactions.

Overall, blockchain technology has the potential to greatly improve efficiency in supply chain management. By reducing the need for manual record-keeping and improving transparency, blockchain can help to save businesses time and money.

Blockchain technology in Supply Chain management use cases

The distributed ledger technology (DLT) of blockchain has the potential to bring many benefits to supply chain management, including reducing the costs associated with errors and fraud, streamlining processes, and increasing transparency and traceability.

One way that blockchain could reduce costs in supply chain management is by reducing the incidence of overbilling. A study by Boston Consulting Group found that blockchain-based smart contracts could reduce the rate of overbilling in the industry by up to 20%. This would be a significant savings for businesses, as overbilling is currently a major expense in supply chain management.

Another way that blockchain could improve supply chain management is by streamlining processes. For example, blockchain-based smart contracts could automate the process of tracking shipments and payments, eliminating the need for manual data entry and reconciliation. This would not only save time and money, but also reduce the chances for errors.

Finally, blockchain technology has the potential to increase transparency and traceability throughout the supply chain. Because each transaction is recorded on a public ledger, it would be possible to track goods from their point of origin to their final destination. This would allow businesses to ensure that their products are being sourced from reputable suppliers and that they are being shipped according to schedule. It would also enable them to quickly identify and correct any problems that may occur during transit.

How does blockchain technology optimizes ESG metrics

Blockchain technology can help reduce fraudulent activities in supply chains, such as overbilling. By creating a transparent and secure database of transactions, blockchain can help ensure that all parties involved in a transaction are billing correctly and not inflating prices. This can help reduce the overall cost of goods and improve environmental, social, and governance (ESG) metrics.

Blockchain integrations with ERPs

Blockchain technology can help reduce the amount of overbilling in supply chains by providing a shared, transparent ledger that all parties can view and verify. By using blockchain to track invoices and payments, businesses can ensure that each party is only billed for the goods or services they have received. This could lead to significant cost savings for businesses and improve supplier relationships.

Additionally, blockchain-based smart contracts could automate many of the processes involved in supply chain management, including payments, shipping, and inventory management. This would further reduce costs and increase efficiency.

While there are still some hurdles to overcome before blockchain can be widely adopted in supply chains, the potential benefits are clear. For businesses looking to reduce costs and increase transparency, blockchain technology is worth exploring.

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