Revolutionizing Purchase Orders
HPCL’s decision to embrace blockchain technology comes with the primary objective of combating the forgery of purchase orders, thereby simplifying the process for vendors seeking trade finance options through collateralization, proof of turnover, and participation in public procurement. The company has announced its intention to make this facility accessible to the public and vendors by the end of October.
Over the past five years, HPCL has issued purchase orders amounting to an impressive $52 billion, or nearly Rs 4 lakh crores. These high-value purchase orders are of substantial economic significance. However, the absence of automated purchase order verification capabilities for third-party requests outside of HPCL presented a challenge, leading to extensive manual efforts in processing external verification requests.
With the integration of LegitDoc, purchase orders that were historically susceptible to fraud can now be distributed to the relevant stakeholders. This development empowers participants to verify orders instantly and seamlessly with a simple click. HPCL’s move towards a more transparent and efficient purchase order system represents a significant milestone, not only for the company but also for the broader oil and gas industry. It underscores the importance of digital automation and the cultivation of trust within the industry.
Praise for Blockchain Adoption
Neil Martis, the founder of Legit Doc, expressed enthusiasm about HPCL’s adoption of their technology, LegitDoc, to secure billions of dollars’ worth of purchase orders. He views this as a testament to the confidence that businesses and governments have placed in their blockchain platform over the years, especially in protecting critical documents.
A Track Record of Blockchain Integration
HPCL’s adoption of blockchain technology for purchase orders follows a broader trend of governmental and administrative use of blockchain for process optimization. Previously, the administration of Gadchiroli, Maharashtra, adopted LegitDoc to issue 65,000 tribal caste certificates in 2022. In addition to certificate issuance, the technology was employed to generate COVID-19 vaccine certificates in 2021 within the state of Maharashtra. Furthermore, the Maharashtra government utilized blockchain technology to issue over 100,000-degree certificates in 2022.
Conclusion
HPCL’s collaboration with Zupple Labs and the implementation of LegitDoc to secure and verify purchase orders marks a significant advancement in the company’s commitment to transparency and efficiency. By harnessing blockchain technology, HPCL is strengthening the integrity of its high-value purchase orders and providing a more streamlined process for vendors. This proactive approach to embracing blockchain is a testament to its growing importance in modern business operations and government services, underscoring the value of this technology in enhancing security and trust.