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Product Modules

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I N T R O D U C T I O NWHAT DOES SUPPLYBLOCK DO?

The world economy is under distress. The ability of organizations to continue to provide business services in the face of adverse operational conditions is essential. Solutions that can improve

operational efficiencies and overcome traditional challenges such as corruption and gross mismanagement of funds are highly desirable.

SupplyBlock’s blockchain-powered technology solutions are uniquely designed to improve operational resilience and compliance. Its cross-sector applications significantly reduce the

risk of fraud and error, along with enhanced auditability and reporting.

A dynamic interface allows for easy configuration and customization. Modules are designed to be user friendly and efficient and can be deployed individually, or in combination, to meet ever-evolving

business needs.

SupplyBlock technology solutions mitigate risk and drive process and cost efficiencies in a secure, transparent and fully auditable environment, providing a proactive business-to-business platform

that curbs corruption and enforces active compliance and operational resilience.

SupplyBlock is a proud supporter of the United Nation’s Sustainable Development Goals.

T H E T E C H N O L O G Y O F F E R I N G I S M A D E U P O F T H E F O L L O W I N G C O R E

A P P L I C A T I O N M O D U L E S :

SUPPLIERMANAGEMENT

SMARTPROCUREMENT

COMPETITIVEBIDDING (RFX)

VENDOR RISK & COMPLIANCE

COMPRESS-ARROWS-ALT CODE-BRANCH

ARROW-UP

COINS CALENDAR-CHECK

WWW.UN.ORG

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COMPRESS-ARROWS-ALT SUPPLIER MANAGEMENT

Arrow-circle-right THE CHALLENGEA common challenge is the maintenance of supplier databases and the active verification and compliance of the underlying service providers i.e. how current and accurate are they? Large supplier databases require multiple records to be continually verified. The supplier documentation needs to be updated regularly (e.g. tax clearance) and can easily spiral out of control with thousands of documents being outdated. Current

ERP systems do not address this challenge.

Most supplier databases are inaccurate and contain suppliers that are inactive or have outdated information, as well as suppliers that have changed their core business activities.

These challenges pose increased risk to an organization and its clients.

Arrow-circle-right THE SOLUTIONSupplyBlock technology solves problems associated with  supplier verification,  categorization and active compliance through a  combination of manual and  automated verification processes. The system prompts  suppliers into taking responsibility for  updating their own records in order to maintain

an ongoing and active, verified status. This includes proactive  warning notifications  that alert suppliers of expiring documents, key  cut-off dates and incomplete  information – thereby enforcing ongoing verification and proactive self-compliance of suppliers. 

Arrow-circle-right DESCRIPTIONThe Supplier Database Module comprises of the following processes:

SUPPLIER TAKE-ON

Suppliers register on the platform and are categorized according to various parameters e.g. size of business, geographic territory, industry specific requirements, legislative requirements, etc.

The categorization of suppliers determines the verification process undertaken within the platform e.g. a small business may not have audited financials nor a VAT registration certificate and will therefore have a different verification process to that of a large business.

SUPPLIER VERIFICATION

Suppliers are verified through the platform using a combination of automated (APIs) and manual verification processes to ensure authenticity of

information entered into the system.

Automated system features encourage suppliers  to maintain an ongoing and active verification status. In case of non-compliance the level of prompting is automatically escalated. Should suppliers not maintain their verified status, they run the risk of compromising their access to market and tender award, as tender originators generally choose to deal with verified suppliers.

Should more specific supplier information/certification be required pertaining to a particular tender, this will be requested in-system by the tender issuer at the time of bidding.

ONGOING SUPPLIER MAINTENANCE

Ensuring accuracy of supplier information is crucial for an active and effective supplier database. Data transactions and supplier documentation are stored on the blockchain thereby ensuring the security and

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integrity of supplier information. This saves many man hours as the documentation and data involved in the supplier verification process does not have to be printed every time the supplier bids on a tender (i.e. seamless data transition from one tender to the next), and the data/documentation is continually updated by the supplier in order to maintain their verified status.

The  system, when used in conjunction with other

SupplyBlock modules, rates supplier performance and risk. It also provides the supplier with the ability to ensure they have all their business information active in the system to ensure compliance aligned to their customer’s requirements for a continued successful business relationship.

This ensures not only verified and active suppliers, but a better quality of suppliers.

COINS COMPETITIVE BIDDING

Arrow-circle-right THE CHALLENGECurrent online procurement solutions operate on legacy platforms where there is a lack of transparency and inability to audit, which makes them susceptible to manipulation.

The majority of economies still use manual processes

which are costly, inefficient and susceptible to fraud & corruption.

There are no holistic solutions on the blockchain that cater for the complete, end-to-end competitive bidding process.

Arrow-circle-right THE SOLUTIONWith  the advancement of technology, SupplyBlock helps solve these challenges by  providing an  innovative, easy-to-use blockchain integrated technology platform  that is both process & cost  efficient, secure and completely auditable across the entire value chain. 

Through features such as automated scoring and

full audit capability SupplyBlock is able to curb corruption and ensure bid integrity and transparency.

The platform adds equal value to the bidder and tender creator with both RFX originator and  bidder using the same platform to ensure a holistic procurement solution.

Arrow-circle-right DESCRIPTIONSupplyBlock Competitive Bidding Module is a blockchain-powered, RFX solution that services the full procurement value chain for all size businesses across multiple industry sectors. This includes supplier take-on & verification, bid creation, bid submission, supporting documentation submission & validation, with automated scoring and reporting.

SupplyBlock Competitive Bidding Module enforces

end-to-end transparency and integrity, from procurement decisions to the validation of suppliers (“bidders”) qualification data, through to contract award and subsequent project monitoring. It is an easy-to-use, template driven, e-procurement solution that is constantly benchmarked against best practices across multiple industries. It is a web-based platform that drives process & cost efficiencies. It connects “buyers” and “sellers” in a

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secure, transparent and fully auditable environment.

The platform design is user friendly and efficient with customizable features such as bespoke reporting tools to enable users to remain competitive with key insights into all spending, bidding and advertising on the platform, and across the entire procurement process.

Through SupplyBlock technology solution, corruption,

mismanagement, and wasteful expenditure is

reduced and hours upon hours are saved through

more automated bidding and scoring processes—

thereby increasing the effectiveness and impact of the

procurement process.

• Core Processes – refer Appendix 1

• Key Enhancements – refer Appendix 2

CODE-BRANCH SMART PROCUREMENT

Arrow-circle-right THE CHALLENGEPre-allocated funds for specific projects are often mis-spent and unaccounted for e.g. grant and aid funding, disaster relief, Enterprise and Supplier Development (specific to South Africa), etc.

The intended purpose of these funds is often not successfully achieved resulting in an inadequate audit trail and traceability.

Arrow-circle-right THE SOLUTIONSupplyBlock technology limits risks associated with miss-spent funds and aligns procurement processes with complicated global and country specific macro requirements and challenges. The technology and

process integrity can be applied wherever there are controlled payment requirements to specified suppliers for specified services and products.

Arrow-circle-right DESCRIPTIONBuilt in “Smart” Procurement functionality allows the ability to set up and select pre-approved suppliers and pre-approved services or product offerings, thereby removing misappropriation of funds and directly aligning spend in accordance with geographic, industry-specific and legal requirements.

A good example of this is navigating the continuously evolving Broad-Based Black Economic

Empowerment (B-BBEE) scorecard requirements in South Africa. Add to this the complexities of Enterprise and Supplier development and it can become a complex challenge for any business. SupplyBlock technology aligns organizations wishing to maximize their scorecard points with approved and verified recipients getting access to market along with sustainable business opportunities.

EXPLAINER VIDEO

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Whilst Broad-Based Black Economic Empowerment functionality is specific to a South African environment, the system can be easily configured to accommodate alternate bespoke nuances within other jurisdictions and industry sectors.

The “Smart” Procurement application provides industry-first auditability and reporting against the entire spend lifecycle; from whom funding was spent on, how they used it and the resultant success of funds utilization and the economic benefit derived

- ultimately preventing misappropriation of funds.

Our built in Escrow functionality (under development)

will add an additional layer of control and auditability

to the “Smart” Procurement Module. The Escrow

system will reduce risk and ensure the needs of all

participants in the process are treated with the same

importance. Funds are controlled by an independent

third party, through a blockchain managed process,

that safeguards the “donor’s” funds to the recipient,

and in turn to approved service providers. Upon

certain deliverables being met within certain

timeframes and following completion of pre-

approved check points, funds will be released to

relevant parties.

CODE-BRANCH VENDOR RISK & COMPLIANCE

Arrow-circle-right THE CHALLENGEInternational regulatory compliance dictates that organizations must know the ongoing risk their suppliers pose to not only themselves but also the risk they pose to their clients. Continually changing

operational conditions can have severe impact on businesses and their suppliers. The ability of an organization to continue providing business services in the face of adverse operational events is essential.

Arrow-circle-right THE SOLUTIONWith the application of Distributed Ledger technology, SupplyBlock’s Vendor Risk Assessment tool enables automated rating of service providers and the overall risk they pose to not only to the company but to their clients as well.  Inefficiencies and risks associated

with often highly manual based assessments (e.g. spreadsheets) are eliminated e.g. wasted man hours, key person dependency, liability and potential reputational risks as a result of human error.

Arrow-circle-right DESCRIPTIONBy replacing manual risk processes with auditable technology solutions organizations can achieve greater operational resilience.

SupplyBlock’s Vendor Risk Assessment module is an ongoing risk measurement and due diligence tool that significantly reduces administratively intensive

manual processes, providing less dependency on key personnel and associated liability risks as a result of human error. Over and above this, institutional knowledge and IP is embedded in the system as opposed to being locked up with key individuals leaving the business exposed should something happen these individual/s.

ESD Video

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THE PROCESS COMPRISES OF 3 PHASES

DEFINEHaving all an organization’s risk information in a secure technology solution

ensures risk registers are maintained across the entire supplier base by rating, categorizing and ranking suppliers in a single secure and auditable

platform. Documentation regarding policies and procedures can be securely maintained on a secure platform using a single solution interface.

ASSESSThe setup and use of standard or customized templates improves

assessment timeframes along with automated scoring (removing human error and bias). This includes both external and internal assessments of suppliers along with automated API driven data point assessments (e.g. KYC). Our Risk cycle RFI (request for information) allows for automated distribution, multiple gate reminders, blockchain tracking of the process

and automated collection and consolidation of replies.

REVIEWThis includes review of previous Supplier assessments and setting new

rankings of suppliers against the risk register following assessment findings.

1

2

3

All stakeholders are kept informed in real-time through a Risk Dashboard that tracks key assessment data points, with the ability to implement and update an action plan according to findings e.g. green light (low risk), amber light (medium risk), red light (high risk – may require further action).

Our holistic solution allows suppliers to reduce their risk by using template-based forms which greatly reduce time taken to complete assessments and

help in eliminating errors and omissions in their

returns.

By combining the Supplier Management module with

the Supplier Risk Module, organizations can further

increase efficiencies for both the organization and

Supplier by ensuring that the entire risk cycle and

assessment process becomes less prone to errors,

faster, more efficient and 100% auditable.

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Ellipsis-V APPENDIX 1

Arrow-circle-right CORE FEATURESSupplyBlock’s unique solution design and application encompasses the following core features:

• Integrated Decentralized Ledger Technology (DLT) - provides evolutionary advantages with regards to process and data integrity.

• Secure Audit Trail – the ability to audit and track transactions across the entire end-to-end process (blockchain logged) ensures operational excellence.

• Holistic Technology Solution - both RFX originator and bidder use the same platform to ensure a holistic procurement solution that services the full procurement value chain.

• Automated Scoring - advanced tender scoring and reporting mitigates risks of bid manipulation and corruption.

• Custom Reporting - enhanced document and artefact management enables users to remain competitive with key insights into all spending on the platform.

• Active Compliance - proactive and early warning notifications alert users of expiring documents, key cut-off dates and incomplete information – thereby enforcing compliance throughout the automated process.

• Security - enhanced monitoring, along with focused cyber security embedded in the solution design enables for the immediate notification, lock-out and blacklisting of users who abuse the bid process. This helps negate fraud and corruption at the source and provides for a more secure, impactful process.

• Customizable - platform configuration is template driven…it is easily customizable and offers specific components on a modular basis depending on the user’s unique requirements.

• Competitive - our technology solution is extremely competitive, and drives significant efficiencies (process, time and cost savings).

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Ellipsis-V APPENDIX 2

Arrow-circle-right KEY ENHANCEMENTSOver and above the core functionality, below are some of the Key Enhancements built into the offering:

• Reverse / Forward Auction - where the RFX originator is merely looking for best price e.g. asset disposal. This feature usually has a timeframe restriction in which bidders can see other bidders bid prices and can out bid their competitors. Whilst the bidder identities are disclosed to the RFX originator, they remain anonymous to their competitors.

• Best and Final Offer - allows the RFX creator to reset a supplier’s bid to “requote” to allow them to refine their offer and resubmit it into the process. This leads to further bid savings and more competitive bids.

• Template Creation - document template functionality allows the Admin of the company to either: (a) use standard SupplyBlock templates, (b) edit these templates, (c) set up new templates for use in-system. This functionality allows users to easily create templates for various sections of the RFX document including documents

such as NDA’s, letters of intent, legal notices etc. This significantly improves time spent on creating new bids in the system.

• Data Analysis - ability to download bid report information (information about all the bids received from the RFX process) into Excel to allow for long-tail analysis, interrogation and scenario outputs of data in system alongside any other pertinent data held separately. 

• Refactoring of Code - modularization – RFX process code has been refactored to allow us to more efficiently create bespoke solutions for new partners (e.g. white label solutions). 

• Flags Irregularities – automated flagging is built into the system configuration to identify anomalies based off numerous data points. Machine learning ability enables the system to learn traits of users and to notify admin in the event of an anomaly e.g. a user trying to manipulate the system or something new that the user attempts.

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Contact

Stuart James

Cell : +27 82 873 9825Email : stuart@supplyblock. io

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