Forbes India 15th Anniversary Special

HPCL and Zupple Labs collab to develop blockchain-based purchase order verification system

HPCL has already issued 3,000 purchase orders using their blockchain system and plans to roll out the system to more vendors this month

Shashank Bhardwaj
Published: Oct 20, 2023 04:16:17 PM IST
Updated: Oct 25, 2023 07:47:55 PM IST

HPCL and Zupple Labs collab to develop blockchain-based purchase order verification systemImage: Shutterstock

Hindustan Petroleum Corporation Limited (HPCL), a state-owned oil and gas corporation in India, has collaborated with software firm Zupple Labs to launch a blockchain system for automating the purchase orders (POs) verification process.

HPCL has partnered with Zupple Labs to integrate ‘LegitDoc’ into its purchase order system. LegitDoc is Zupple Labs’ digital credentialing technology that allows HPCL to issue digital purchase orders to its vendors without requiring manual verification.

HPCL’s blockchain system seamlessly integrates with HPCL’s internal electronic purchase order (e-PO) system to generate tamper-evident verifiable purchase orders. These digital purchase orders can be sent to vendors who share them with third parties. The third parties can readily validate these purchase orders on the HPCL vendor portal verification application.

The purchase order verification system utilises two parallel blockchains for settlement layers. These blockchains include the public Near blockchain and the private Hyperledger Fabric blockchain. The integration of public and private blockchains adds an extra layer of resilience to the purchase order verification system. It aligns with HPCL’s commitment to business continuity and disaster recovery. 

HPCL and Zupple Labs have worked on this blockchain-based purchase order system over the past six months. During that time, they’ve already issued approximately 3,000 purchase orders using the system. The successful implementation of the system highlights the benefits of blockchain technology in corporate procurement.

Following this successful implementation, the blockchain purchase order system is ready for official rollout among vendors. According to reports, it is expected to become accessible to vendors within this month.

Using blockchain technology in the oil and gas industry streamlines the procurement process and reduces errors and fraud. As a result, many oil and gas companies have already adopted blockchain technology. BHP Billiton and Petroteq are two such companies that have implemented blockchain to optimise operational efficiency by tracking, monitoring, and managing their diverse resources.

HPCL’s adoption of blockchain technology for automated purchase order verification is another addition to developments in the oil and gas industry. With the successful rollout of the blockchain system, HPCL will set new standards for efficiency and transparency in the oil and gas industry’s procurement practices.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

Post Your Comment
Required
Required, will not be published
All comments are moderated