Siam Cement Group (SCG) is keen to adopt a blockchain solution for its procurement and payment methods, expecting to encourage participation from 2,400 suppliers by 2020.
SCG's blockchain solution is called the Procure to Pay platform, adopted in 2018, with 240 suppliers already joining this platform.
Thammasak Sethaudom, vice-president for finance and investment, said SCG has shared the platform with business partners in chemical and packaging companies to manage purchase orders of raw materials, warehouses, spare parts and services.
"This platform could increase partners' operating efficiency and facilitate their business," he said.
Mr Thammasak said the blockchain trend has affected all businesses globally and they must adopt the digital platform and transform their operations in a bid to chase this fast-moving trend.
"Our platform has helped suppliers reduce their processing times by 50% from 70 minutes to 35 minutes per purchase order," he said.
"This platform speeds up invoice issuance and the verification process, so the procurement method for 1,600 items is one day, down from 39 days in the past."
Mr Thammasak said this platform reduces cost by 70% compared with the conventional process and allows for a lean process, meaning employees can add more value to organisations and stakeholders.
Furthermore, SCG's business partners can benefit from the platform. For example, this solution is equipped with the ability to track the real-time status of transactions and enable on-time payments.
SCG joined hands Digital Ventures Co, the corporate venture capital arm of Siam Commercial Bank, in 2018 to develop the blockchain platform.
SCG spent 10 million baht to adopt the platform, expecting to expand usage from SCG's dealers nationwide.
Mr Thammasak said SCG is studying the feasibility of expanding this blockchain platform for its overseas business in Indonesia, Myanmar, Laos and Vietnam, as the company has a strong presence in those countries.