Data Validation and Smart Contracts: No Touch Processing from Ticket to Payment
What are Smart Contract Validations? How can they improve your workflow to create efficiencies within your business? Let us explore!
Smart Contracts and Validations are programs within a software platform that perform the cross checking of legally valid events and actions under a contractually binding agreement. Manually validating e-documents across an extensive workflow, across multiple departments, within a company is time consuming and allows for human error. Smart validations require documents to shift from paper to electronic to truly let software make crucial validations on your behalf based on sets of parameters.
The common digitized documents in the oil and gas industry:
- Pricing Contracts or Price Books
- Purchase Orders
- Work Orders
- Bill of Ladings
- Field Tickets
- Invoices
- MSA
- Insurance
- JSA
The Industry Problem
Currently the transformation of all these documents to digital form does improve efficiencies where no longer are you having to sift through paper, but you are now having to sift through pages of e-documents and review line items digitally. The majority of workers approving these documents are required to check the scope and quantity prior to pushing out to payment. More often than not the data within these documents, either paper or electronic, or a combination of both are overlooked due to various reasons.
How You Can Leverage Software for Smart Contracts and Validations
Operators:
There are many examples of where a validation program would benefit an Operator. One common example would be when working with haulers that are transporting liquids. Situations have happened where there are discrepancies in what was picked up by a hauler vs what was disposed causing a long reconciliation process and more money being spent over time. A recent Engage Mobilize study showed a 10.5% reduction of variance for their liquid hauls by using data validation, which directly translates into cost savings for the operator.
Service Providers:
For Service Providers, one favorable result of validations is shrinking the Days Sales Outstanding (DSO) metrics. Field Tickets hold valuable information, along with stamps and signatures, that often get removed or changed. Validations eliminate the human touch to reduce errors, avoid misplaced tickets, and eliminate approval delays to realize a low DSO in return. Additionally, technology such as GPS tracking and geofencing can capture new datapoints that can be used to validate ticket information.
What do Validation Programs Mean for the Industry?
The benefits of these programs are recovery of losses in revenue, cleaner data, behavioral changes, better working relationships with third parties, and most importantly reduced intentional and unintentional human errors. Smart Contracts and data validations are digital trends that are already changing the way financial transactions are taking place. Are you ready to jump on this train?
Liz Frisby
Sr. Account Manager
Engage Mobilize
Media Contact
Cassandra (Cassie) Skindzelewski, Director of Marketing
Marketing@engage-m.com
(720) 575-6695
SOURCE: Engage Mobilize, Inc.
