Blockchain is one of the most promising technologies that is making steady inroads in mainstream businesses. While leading enterprises are implementing blockchain to enable smart contracts, medium-sized businesses are using it to gain a competitive edge. They improve business efficiency by integrating blockchain in ERP systems. It strengthens data security and enhances transparency across processes. Blockchain is a decentralized and distributed digital ledger that records transactions across many computers. The records on the blockchain cannot be deleted or tampered, which is critical for transparency in ERP processes. Read this blog post to understand how blockchain is enhancing the existing features of ERP.
At Oodles, we build ERP solutions around blockchain’s four core features:
* Privacy: Transactions carried out are only visible to those with valid reasons to access the transactions.
* Shared Ledger: The record is only available to members of a business network
* Proof: Transactions can be endorsed by the involved participants of a business network
* Smart Contracts: Transactions are trackable and irreversible
How Blockchain Integration is Reinventing ERP Processes
Implementing Smart Contracts to Automate Business Processes:
A smart contract is a protocol encoded in the blockchain to automate transactions. The use of smart contracts is growing in the supply chain industry, specifically in manufacturing and distribution. Smart contracts are electronic agreements that are automatically executed as per contractual terms and business logic. They are ideal for integrating in ERP applications to automate transactional processes. For instance, an ERP system can trigger purchase orders when stocks fall to benchmark levels. Businesses can also verify credible transactions without any third-party intervention.
Key Benefits of Implementing Smart Contracts in ERP Systems
* Smart contracts enable businesses to formalize and enforce an agreement automatically
* Businesses can use smart contracts to replenish their stock automatically as per the requirement
* Businesses can authenticate inventory purchases with third-party suppliers automatically without engaging in any negotiations
Use Case: E-commerce businesses can integrate blockchain smart contracts with their ERP systems to automatically communicate with suppliers and authenticate stock purchases.
Strengthening Security to Prevent Unauthorized Data Access
Blockchain technology is known for enabling system security and data privacy. Small and medium-sized enterprises use blockchain to maintain cloud security, detect suspicious and unauthorized access to data. Integrating blockchain in ERP systems enables businesses to ensure that data vulnerabilities and suspicious transactions are detected in real-time. It enables decision-makers to avert future threats.
Use Case: Using blockchain, solutions development companies can easily detect smartphone vulnerabilities on which ERP apps need to be installed. Detecting anomalies will enable businesses to take adequate security measures.
Authenticating and Verifying Data:
Blockchain technology has the ability to verify and authenticate identities. Insurance companies use blockchain to verify the identities of their customers so that they can process claims or authenticate financial transactions.
Key Benefits of Integrating Blockchain:
*Integrating blockchain in ERP systems is beneficial for verifying staff identity at sensitive locations
*With blockchain integration, businesses can verify the identities of customers when they seek after-sales support
Use Case: Manufacturing businesses can integrate blockchain authentication systems with their ERP systems so that designated members of staff can access sensitive areas. The integration can give managers a clear view of their subordinates’ presence in the workshop, thereby preventing unauthorized entry into high-risk spaces.
Risk-Free Payment Processing:
One of the key advantages of blockchain is its ability to ensure risk-free financial transactions. Integrating ERP with Blockchain ensures B2B purchases and payments are risk-free and automatic.
*Businesses can integrate blockchain into their ERP systems for quick and automatic payments
*Blockchain-powered ERP systems ensure that transactions are regulation compliant
*Authenticity and transparency of transactions make auditing easier and risk-free
Integrating Blockchain in ERP Systems: Use Cases Across Industries
Food Industries: Businesses can create secure documentation of raw materials with real-time visibility in the supply chain. We, at Oodles ERP, provide supply chain development services to streamline and automate supply chain operations in the food and beverage sector.
Finance Sector: Businesses can use blockchain applications to create a simplified audit trail by collecting transactional data from multiple financial systems.
Manufacturing Industries: Businesses can use a shared ledger to avail complete provenance details for each individual component of a product. A shared ledger ensures that details are accessible to all parties involved within the supply chain.
Avail Benefits of Blockchain-powered ERP Solutions with Oodles