POSCO International and LG CNS have teamed up to pilot a blockchain solution aimed at improving the accounts receivable process. The project tests how distributed ledger technology can enhance the efficiency and accuracy of managing payments owed by customers.
POSCO International, part of the POSCO Group specializing in trading and energy, is collaborating with LG CNS, LG Group's IT services branch. This initiative is currently a pilot program, focusing on limited areas rather than a full-scale system implementation.
The accounts receivable function involves tracking money customers owe for delivered goods or services that remain unpaid. This process generates extensive records including invoices, payment terms, and settlement data between buyers and sellers.
Why Blockchain Fits the Bill
Blockchain's strength lies in creating a single, auditable record accessible to all involved parties, helping ensure data consistency and transparency. By applying this technology to receivables, the pilot aims to speed up reconciliation, provide clearer invoice traceability, and reduce disputes over payment statuses.
However, these improvements are still theoretical at this stage and will need validation from real-world operation results. This back-office use of blockchain aligns with other financial sector experiments focused on operational efficiency rather than speculative trading, similar to moves by firms like BNY Mellon exploring tokenized treasury settlements.
