Supplier Performance & SLA Automation

Replace manual invoice reconciliation with smart contracts that automatically verify service-level agreement (SLA) compliance and trigger payments. This eliminates payment delays and costly disputes.

• Example: A logistics provider's on-time delivery is confirmed via IoT sensor data on-chain, releasing payment instantly upon delivery, cutting invoice processing from 45 days to real-time.
• ROI Driver: Reduces accounts payable labor by up to 70% and improves supplier cash flow, strengthening partnerships.

Create a single, tamper-proof record of all supplier interactions, deliveries, quality checks, and communications. This immutable ledger serves as the definitive source for audits and performance reviews.

• Example: A pharmaceutical company tracks temperature-controlled shipments end-to-end. The unchangeable log provides irrefutable proof for regulators, reducing compliance audit preparation time by 50%.
• ROI Driver: Cuts audit and legal discovery costs significantly while mitigating liability risks.

Implement a transparent, data-driven supplier scorecard updated in real-time based on on-chain performance data. Use this for automated tiering and preferential sourcing decisions.

• Example: A manufacturer automatically routes more orders to suppliers with consistently high on-time-in-full (OTIF) scores recorded on-chain, optimizing inventory and reducing stockouts.
• ROI Driver: Improves procurement efficiency by 15-25% and reduces supply chain risk by proactively managing vendor performance.

Encode penalty clauses and bonus structures directly into smart contracts. Automated enforcement ensures fair application of terms without manual intervention or negotiation.

• Example: A construction contract includes penalties for late milestones. The smart contract automatically deducts the agreed amount from the milestone payment upon a verifiable delay, documented on-chain.
• ROI Driver: Recovers lost value from non-performance instantly and creates a powerful incentive for suppliers to meet commitments, protecting project margins.

A shared, transparent source of truth eliminates the "he-said-she-said" dynamic in supplier relationships. Dispute resolution shifts from lengthy investigations to verifying on-chain data.

• Example: A retailer and its packaging supplier previously spent weeks reconciling delivery quantities. With goods receipt recorded immutably at the warehouse dock, disputes are resolved in hours, not weeks.
• ROI Driver: Can reduce the cost of dispute resolution by over 80%, freeing up legal and operational resources.

Provide lenders with verifiable, real-time performance data to de-risk financing. Suppliers can access lower-cost working capital based on their proven on-chain track record.

• Example: A small parts supplier uses its immutable history of on-time deliveries to a major OEM as collateral, securing invoice financing at a 3% lower rate.
• ROI Driver: Strengthens the entire supply chain's financial health, reducing systemic risk and potentially lowering input costs through better supplier terms.

Replace manual invoice reconciliation with smart contract-based settlements. Payments are automatically triggered upon verifiable proof of delivery or service completion, as recorded on-chain. This eliminates disputes and accelerates cash flow.

• Example: A logistics provider's smart contract releases payment only after IoT sensors and recipient signatures confirm on-time, in-condition delivery.
• ROI Impact: Reduces accounts payable processing time by up to 80% and cuts late payment penalties.

Create a single, tamper-proof record of all supplier interactions, from PO issuance to delivery acceptance. This immutable ledger provides an indisputable audit trail for compliance, performance reviews, and dispute resolution.

• Key Benefit: Drastically simplifies internal and external (e.g., SOX, ISO) audits. Performance data cannot be altered retroactively by any party.
• Business Value: Provides concrete data for supplier scorecards and renegotiations, moving from subjective assessments to objective, verifiable metrics.

Move from static, annual supplier reviews to real-time risk assessment. Integrate on-chain performance data (delivery times, quality incidents) with off-chain credit scores to create a dynamic risk profile.

• Process Fix: New suppliers can be onboarded with verifiable credentials (certifications, past performance) stored on a decentralized identity platform, cutting onboarding time from weeks to days.
• Outcome: Proactively manage supply chain resilience by automatically flagging underperforming or high-risk vendors.

Enable transparent, shared tracking of complex cost allocations and Scope 3 carbon emissions across multi-tier supplier networks. All parties contribute to and access a single version of the truth.

• Example: Automotive manufacturers and their part suppliers jointly record material provenance and transportation legs on a shared ledger, automating carbon credit calculations and ESG reporting.
• ROI: Eliminates costly manual data aggregation and reduces reporting errors, ensuring compliance with regulations like the EU's CBAM.

Replace manual audits and invoice disputes with smart contract automation. Define delivery times, quality thresholds, and penalties in code. Payments are released automatically upon verified delivery, while late or substandard shipments trigger instant, pre-agreed deductions.

• Real Example: A major electronics manufacturer uses a private blockchain to manage component deliveries. Late shipments from a supplier automatically incur a 5% penalty, credited directly to the manufacturer's account, eliminating weeks of reconciliation.

See beyond your direct (Tier 1) suppliers. By incentivizing sub-suppliers to log data on a shared ledger, you gain visibility into Tier 2 and Tier 3 operations. This identifies single points of failure, monitors for geopolitical risks, and ensures raw material compliance.

• Strategic Value: Dramatically reduces supply chain disruption risk. A carmaker can now verify the conflict-free status of cobalt in its batteries all the way to the mine.