Even as the world moves towards a more efficient future, blockchain is slowly but surely transforming B2B transactions on a global scale today. In fact, the total number of B2B cross-border blockchain transactions is projected to surpass 1.7 billion by 2025. The UAE, in particular, is a region of interest because it is quickly emerging as one of the most preferred markets for blockchain startups and businesses.  

In a world where blockchain is gaining increasing prominence by the day, businesses need to be equipped to tap into this technology optimally. And where better to begin than the fundamentals? 

Beginning at the basics: What is blockchain?  

The word ‘blockchain’ is everywhere now, but businesses need to understand what it is all about to truly make the most of this new technology. Simply put, a blockchain is a decentralized and immutable digital ledger. Blockchain technology uses this concept to facilitate transparent yet secure data sharing across a network.  

The role of blockchain technology in UAE’s vision for the future 

In the journey to the future, the United Arab Emirates has always been one step ahead. So, when blockchain emerged as a potential contender for technologies that could shape the world in the coming years, the UAE embraced it and how! The launch of the Emirates Blockchain Strategy 2021 and the Dubai Blockchain Strategy are some of the most relevant examples in this regard.  

Further, the Dubai Future Foundation also established the Global Blockchain Council to explore the possible applications of this futuristic technology. Amid this dedicated focus on blockchain in the UAE, businesses in the region must understand how technology can revolutionize the procurement supply chain.  

Three ways in which blockchain can revolutionize the procurement supply chain 

Here is how blockchain technology can add value to your procurement supply chain.  

The creation of smart contracts 

Blockchain can be pivotal to creating smart and tamper-proof vendor contracts. These contracts can support multi-party agreements and even be self-executed, so payments occur on time.  

Enhanced supply chain transparency  

Improved transparency and visibility across the supply chain make vendor management more efficient for your business. With blockchain, you get the benefit of audit trails, better traceability and verifiable supplier credentials across the procurement cycle.  

Streamlined purchase management 

Purchase management is a crucial part of the procurement supply chain. Blockchain technology can be a game-changer since it facilitates more efficient order approvals, quicker invoice processing, and a more streamlined procure-to-pay cycle.  

The first step in the blockchain-led revolution 

Digitalization is the first step that will make your business ready, for when you would need to take that leap into the future of procurement supply chain using blockchain technology. Moglix facilitates has been working with organisations digitally transforming their procurement supply chain. Contact us today to learn more about how your business can keep pace with the newest trend in the UAE’s B2B landscape.