EY Launches OpsChain Network Procurement Solution on Ethereum Blockchain

EY Launches OpsChain Network Procurement Solution on Ethereum Blockchain

EY has unveiled its OpsChain Network Procurement solution, marking a groundbreaking step in utilizing blockchain technology for end-to-end procurement activities. Built on the public Ethereum blockchain, this first-of-its-kind solution empowers enterprises to operate as global networks, streamlining procurement processes and enhancing collaboration.

In its media release, EY (Ernst & Young) highlighted the platform’s benefits, enabling companies to manage network-level agreements beyond the constraints of individual ERP systems. With an increasing reliance on global business networks, EY’s innovative approach promises efficiency, security, and cost savings for procurement operations.

What is EY OpsChain Network Procurement?

The EY OpsChain Network Procurement solution is a blockchain-based platform designed to support multi-enterprise procurement processes on the public Ethereum blockchain. It allows buyers and suppliers to collaborate as part of global networks while leveraging blockchain smart contracts for transparency, automation, and accuracy.

Key Features of EY OpsChain Network Procurement

• Secure and Private: End-to-end procurement activities are securely executed on the public Ethereum blockchain.
• Network-Level Agreements: Companies can automatically track total volumes, spending, and agreed terms across multiple enterprises.
• ERP System Integration: Direct integration with existing ERP systems via APIs ensures seamless adoption.
• Smart Contracts: Procurement processes are managed outside of single ERP systems, improving efficiency and reliability.

The beta version of the solution is now available free for individual users through blockchain.ey.com.

Why EY’s OpsChain Network Procurement Matters

Traditional procurement systems are often confined within enterprise resource planning (ERP) systems, limiting their ability to support cross-network operations. As businesses increasingly operate within global networks of suppliers and partners, a more collaborative and transparent solution is required.

Paul Brody, EY Global Blockchain Leader, emphasized:

“Competition is increasing between networks of companies, their partners, and suppliers. The ability to work as a network, above the level of any single ERP system, is crucial. Doing so on a public blockchain means not having to persuade a company or supplier to join a costly, closed proprietary network.”

By utilizing the Ethereum blockchain, EY’s solution removes reliance on closed proprietary networks, offering unmatched flexibility and security while reducing costs.

How Does EY OpsChain Network Procurement Work?

1. Blockchain-Powered Smart Contracts

EY’s solution moves business processes outside of siloed ERP systems into shared smart contracts on the Ethereum blockchain. This ensures real-time updates, automatic validation, and a single source of truth for agreements.

2. Public Ethereum Blockchain

The public Ethereum blockchain is the backbone of EY OpsChain Network Procurement. Its open-source infrastructure provides superior security, transparency, and reliability while removing vendor lock-in.

3. Seamless ERP Integration

Companies can access the solution via APIs, allowing for direct integration with their existing ERP systems. This ensures a smooth adoption process without significant overhauls to current workflows.

4. Baseline Protocol Integration

The solution leverages components of the Baseline Protocol, an open-source framework that connects traditional systems of record to the Ethereum blockchain while preserving privacy and data integrity.

Benefits of EY OpsChain Network Procurement

EY’s blockchain-based procurement solution offers significant advantages for enterprises looking to improve procurement efficiency:

1. Transparency and Automation

By shifting procurement processes to blockchain-based smart contracts, EY enables real-time tracking of transactions, agreements, and spending across networks. This reduces manual intervention and streamlines workflows.

2. Cost Savings

EY’s solution has already demonstrated significant savings. For example, blockchain-based contracts for software royalty calculations have:

• Compressed cycle times by 90%.
• Cut costs by 40%.

These efficiencies translate to similar cost and time savings for procurement activities.

3. Improved Network Collaboration

Businesses can manage network-level agreements more effectively, ensuring that global terms and pricing are adhered to across multiple partners.

4. Security and Reliability

The use of the public Ethereum blockchain ensures a high level of security and transparency, as every transaction is cryptographically secured and stored on the blockchain.

5. Freedom and Flexibility

Unlike closed proprietary networks, EY’s solution offers enterprises the freedom to change vendors and solutions as needed, without being locked into a single provider.

EY’s Blockchain Expertise and Innovation

EY has been a leader in blockchain innovation, consistently delivering cutting-edge solutions for enterprise use cases. The OpsChain platform is part of EY’s broader blockchain initiative, which includes solutions for:

• Supply Chain Management
• Software Royalties and Licensing
• Financial Audits

The launch of OpsChain Network Procurement further solidifies EY’s commitment to leveraging blockchain for real-world business challenges.

Who Can Use EY OpsChain Network Procurement?

The EY OpsChain Network Procurement solution is designed for:

1. Large Enterprises managing complex global supply chains.
2. Small and Medium Enterprises (SMEs) looking for a cost-effective procurement solution.
3. Suppliers and Vendors seeking improved transparency and trust in their agreements.

The solution is particularly valuable for industries with extensive procurement needs, such as:

• Manufacturing
• Retail
• Logistics
• Technology

How to Get Started with EY OpsChain Network Procurement

The beta version of EY OpsChain Network Procurement is now available for free to individual users. Here’s how to get started:

1. Visit blockchain.ey.com to access the platform.
2. Explore the intuitive web user interface (UI) for easy navigation.
3. Integrate the solution with your ERP systems using the provided APIs.
4. Start running secure, end-to-end procurement processes on the Ethereum blockchain.

Conclusion

EY’s OpsChain Network Procurement solution represents a significant leap forward in modernizing global procurement processes. By leveraging the public Ethereum blockchain, EY has created a secure, transparent, and cost-effective solution that empowers businesses to collaborate as global networks.

With smart contract automation, seamless ERP integration, and unparalleled flexibility, EY’s solution addresses the challenges of traditional procurement systems while delivering measurable efficiencies and savings.

For enterprises seeking to streamline procurement operations and embrace the benefits of blockchain technology, EY OpsChain Network Procurement is a game-changing innovation.

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