Siam Cement Group (SCG), the country's largest industrial conglomerate, has seen its procurement process streamlined by 50% after adopting the R3 blockchain platform for one month.
The company's 10 supply chain companies have applied the fully integrated blockchain solution for procure-to-pay on R3 blockchain since mid-August and increased business efficiency by 50% from upstream to downstream, said SCG vice-president Yuttana Jiamtragan.
The blockchain technology's adoption is a collaboration with Siam Commercial Bank's (SCB's) venture capital firm, Digital Ventures (DV).
Staff productivity has also increased, facilitating business expansion in the long run, Mr Yuttana said.
In the next phase, the company will expand digital solutions to the remaining suppliers and to the company's other business areas.
"However, it's too early to forecast financial cost savings of both the company and our suppliers," Mr Yuttana said. "We need to spend more time assessing the issue."
DV chief executive Orapong Thien-Ngern said the company will further cooperate with SCG in adopting blockchain technology to support the partner's business operations.
The expectation is to move all of SCG's supply chain companies and the entire procurement process to the digital platform over the next six months.
The procure-to-pay solution will improve the company's overall business operations, boost efficiency and strengthen competitiveness, Mr Orapong said.
The solutions will cover SCG's international supply chain businesses in the next phase. Enterprise blockchain adoption of procure-to-pay will also help tighten security.
Apart from improving operational business efficiency, SCG's supply chain companies will also receive lower interest rates for invoice financing from SCB. With distributed ledger technology, the bank can analyse customers' risks, Mr Orapong said.
He said SCB has also adopted blockchain solutions to support the bank's procurement process.
With the innovative technology, the bank can shorten the process from a week previously to within one day.
DV has several corporate clients in the pipeline ready to adopt blockchain technology, which can be customised to serve each industry's demand.
The retail, healthcare and manufacturing sectors have already adopted the new technology.