Global professional services firm Genpact, which focuses on delivering digital transformation, is investigating the possibility of companies using a digital finance and accounting solution that leverages blockchain technology to manage order-to-cash operations. In this way, Genpact aims to transform operations, customer satisfaction, and cash flow management by eliminating billing errors and accelerating payment time.
The solution is an effort to reduce the number of invoice disputes which occur due to inaccurate information and missing or late invoices. This will reduce customer frustration and avoid the tying up of cash in accounts receivable, delays payments, ultimately lowering costs.
Co-created with clients, Genpact is optimizing its deep expertise running finance and accounting operations for multiple large multinational enterprises. It will use blockchain technology, allowing various internal and external stakeholders to transparently share data among multiple computer systems. This eliminates the potential for data mismatches among multiple parties involved in finance and accounting functions such as accepting and processing orders, managing fulfilment, and generating invoices and results in a reduction of time spent managing disputes.
Using smart contracts, this approach is expected to reduce the amount of past due invoices to less than 3 percent in most companies, which will enhance cash flow performance, reduce revenue leakage from disputes, and lower costs.
Genpact’s blockchain finance and accounting solution also integrates with customer and supplier banks, allowing visibility to transaction status across end-to-end operations. By automating the payment process once the transaction has been validated and approved, the solution eliminates the potential for errors, which speeds payments processing and delivers a more seamless customer experience.
Shantanu Ghosh, senior vice president of CFO Services and Consulting at Genpact, stated: “Industry disruption is making cycle times irrelevant in finance. Leading companies will be those that harness the power of digital technologies to transform processes, improve billing quality and timeliness, and drive greater accuracy and visibility. Our solution delivers an entirely new digital way to run F&A operations. Genpact’s industry-leading domain expertise managing one of the world’s largest learning data sets for F&A processes – combined with our proven capabilities developing digital solutions for finance organizations – gives us valuable insights that help CFOs and their teams improve cash flow, operating profits, and customer experiences at an accelerated pace and in a predictable manner.”
Genpact also plans to extend the blockchain solution’s scalable platform to bring value across finance and supply chain organizations. As part of its strategy to drive both digital-led innovation and digital-enabled intelligent operations for its clients, Genpact leverages its Lean DigitalSM approach, which combines design thinking methodologies, digital technology and analytics, Lean principles, and deep domain expertise to develop solutions.