Intercompany Process Automation

Manual intercompany reconciliation is a major cost center, consuming hundreds of hours monthly. A shared permissioned ledger creates a single source of truth for all transactions, eliminating disputes and manual matching.

• Real Example: A global manufacturer reduced its intercompany reconciliation time from 15 days to near real-time, freeing up 70% of its finance team's capacity for analysis.
• ROI Driver: Direct reduction in FTEs dedicated to reconciliation and error correction.

Move from batch processing and manual wire transfers to programmable, atomic settlements. Smart contracts can automatically execute payments once predefined conditions (e.g., invoice approval, delivery confirmation) are met on-chain.

• Real Example: A multinational conglomerate uses smart contracts for intra-group netting, settling hundreds of transactions in a single automated batch, reducing banking fees and FX exposure.
• ROI Driver: Lower transaction costs, reduced working capital trapped in float, and minimized currency risk.

Every intercompany transaction is immutably recorded with a cryptographic audit trail. This provides regulators and auditors with instant, verifiable proof of transfer pricing, arm's-length transactions, and compliance with internal policies.

• Real Example: For SOX and tax compliance, a firm provides auditors with direct, read-only access to the ledger, cutting audit preparation time by 50%.
• ROI Driver: Dramatically lower cost of compliance and audit readiness, with reduced risk of penalties.

Gain a real-time, consolidated view of cash positions and obligations across all entities. This enables proactive treasury management, optimized internal lending, and dynamic liquidity pools.

• Real Example: A financial services group uses an internal blockchain to pool liquidity from subsidiaries, reducing external borrowing by 30% and improving interest income.
• ROI Driver: Lower cost of capital, improved cash utilization, and reduced dependency on external credit lines.

Extend the trusted ledger to key suppliers and partners. Enable automated supply chain finance where purchase orders, invoices, and approvals trigger instant, low-cost financing from internal or external sources.

• Real Example: An automotive OEM provides its tier-1 suppliers with early payment options based on verified, on-chain delivery milestones, strengthening the supply chain.
• ROI Driver: Improved supplier relationships, potential for early payment discounts, and a more resilient supply network.

The standardized, high-integrity data generated by automated intercompany processes becomes a strategic data asset. This data can be used for advanced analytics, predictive modeling, or even offered as a verifiable data service to partners.

• ROI Driver: Transforms a cost center into a potential revenue stream or a source of competitive intelligence, justifying the platform investment beyond pure cost savings.

The Pain Point: Monthly or quarterly netting of intercompany payables/receivables across subsidiaries is slow, manual, and opaque. It ties up capital and creates foreign exchange and audit headaches.

The Blockchain Fix: Real-time, atomic settlement on a permissioned ledger. Transactions are recorded and settled instantly, providing a transparent, auditable trail for all entities and regulators.

• Real Example: Large multinationals piloting blockchain for internal treasury operations to eliminate reconciliation.
• ROI Driver: Near-zero reconciliation effort, real-time liquidity visibility, and strengthened compliance with transfer pricing rules.

The Pain Point: Managing shared assets, revenue splits, and operational decisions in a JV requires cumbersome manual reporting, audits, and trust in a central administrator, leading to delays and disputes.

The Blockchain Fix: A transparent, rules-based platform where all transactions and key performance indicators are immutably recorded. Smart contracts automate profit distribution and enforce governance rules.

• Real Example: Oil and gas consortia use blockchain to track and settle shared pipeline usage and maintenance costs.
• ROI Driver: Elimination of audit disputes, automated financial flows, and dramatically reduced administrative overhead for the venture.

The Pain Point: Tracking IP usage across subsidiaries and external partners is manual. Royalty calculations are complex, delayed, and often inaccurate, leaving revenue on the table.

The Blockchain Fix: IP assets and licensing terms are codified on-chain. Usage is recorded transparently, and smart contracts calculate and disburse royalties automatically in near-real-time.

• Real Example: Media and entertainment companies exploring blockchain for transparent music and film royalty distribution.
• ROI Driver: Recovery of lost royalty revenue, elimination of manual tracking costs, and faster payments to rights holders.

Blockchain is not a magic wand. Success requires careful planning.

• Start with a Process, Not a Tech: Automate a high-friction, multi-party process with clear rules first.
• Build a Consortium: The value is in the network. Secure buy-in from key partners early.
• Integrate, Don't Rip & Replace: Layer blockchain as a synchronization layer over existing ERP systems (SAP, Oracle).
• ROI Timeline: Expect operational savings in 12-18 months, with strategic advantages (new revenue models, trust capital) accruing thereafter.

Immutable, timestamped records of all intercompany transactions create a single source of truth. This automates regulatory reporting (e.g., SOX, GDPR) and cuts audit preparation time by up to 70%. Data integrity is cryptographically guaranteed.

• Example: Industries like pharmaceuticals use this for track-and-trace of goods to comply with regulations like the U.S. Drug Supply Chain Security Act (DSCSA).
• Benefit: Drastic reduction in compliance overhead and audit fees.

Automate complex, multi-tier royalty calculations and distributions using smart contracts. Payments are triggered automatically based on verifiable usage data (e.g., streaming, software logs), ensuring accuracy and transparency. This reduces administrative costs and payment cycles from months to days.

• Example: The music industry is exploring protocols like Audius and enterprise solutions for transparent royalty distribution.
• Benefit: Eliminates disputes, ensures creators are paid fairly and promptly.