How to save time and money with procure-to-pay automation
Procure-to-pay (P2P) automation is the process of automating the entire procurement process, from purchase requisition to payment. This process can help businesses save time and money by streamlining and simplifying the procurement process.
One of the key benefits of P2P automation is that it can save time by automating repetitive tasks.
For example, rather than manually entering purchase orders and invoice information, P2P automation can automatically import this information from an ERP or accounting system. This can save hours of time each week, allowing employees to focus on more important tasks. Moreover, P2P automation incorporates electronic document management and electronic approval workflows to seamlessly store and approve procurement related documents – ensuring that all purchase orders and invoices are reviews and approved by the appropriate individuals before they are processed.
Another benefit of P2P automation is that it can help businesses save money.
By automating the procurement process, businesses can reduce the risk of errors and fraud. For example, P2P automation can automatically flag duplicate invoices, preventing businesses from accidentally paying for the same invoice twice. Additionally, P2P automation can help businesses negotiate better deals with suppliers by providing them with more accurate and timely information about their purchasing patterns. P2P automation contributes to a reduction in labour costs as less employees are required to spend time completing repetitive tasks or validating invoices. In turn, this decrease in labour costs and increase in efficiency harbours full visibility of the procurement process, ultimately reducing or preventing the cost of delays.
For example, KEW, one of the UK’s fastest growing electrical wholesalers faced the consequences of rapid scaling with a skyrocketing number of supplier invoices per year. Growing to over 96,000 invoices in one year, the company’s reliance on paper trails made it much more difficult to keep track the accrual of goods received but not invoiced yet. Consequently, this lack of visibility and supply chain oversight led to a lack in cashflows.
To resolve these growing issues, KEW partnered with Canon in transforming their P2P process. Canon’s solution automated 80% of KEW’s accounts payable process within one platform, enabling them to regain full control and oversight of their cashflows. The P2P automation solution further decreased the need for manual labour and were able to utilise settlement discounts as they could pay their suppliers swiftly. Ultimately, this P2P solution assisted KEW in saving an abundance of time and money, as well as elevating purchasing power.
P2P automation can also help businesses improve their supplier relationships.
By providing suppliers with more accurate and timely information about their purchasing patterns, businesses can negotiate better deals and improve communication with their suppliers. Additionally, P2P automation can help businesses reduce the risk of disputes by providing both parties with a clear record of all transactions. Consequently, the use of this technology can translate into a boost in productivity within the supply chain as well as fewer errors. Automation can prevent incomplete or missing information by standardizing the procurement process, implementing validation systems such as checking for correct formatting of invoice numbers, detecting duplicate invoices, employing data analytics, and more.
In addition to these benefits, P2P automation can also help businesses comply with regulations.
For example, P2P automation can help businesses comply with the Sarbanes-Oxley Act by providing them with accurate and timely information about their procurement process. Additionally, P2P automation can help businesses comply with the Foreign Corrupt Practices Act by providing them with the ability to track all transactions with foreign suppliers. On top of this, a centralised automation system lends itself to experiencing a reduction in fraud risks by setting strict boundaries between purchasing powers and approvals. This further strengthens the supply chain platform in preventing hackers and scammers to enter the system through fraudulent invoices.
Overall, P2P automation can help businesses save time and money by streamlining and simplifying the procurement process. By automating repetitive tasks, reducing the risk of errors and fraud, and improving supplier relationships, businesses can improve their bottom line and focus on more important tasks.
Additionally, P2P automation can help businesses comply with regulations and improve their compliance posture. To get the most out of P2P automation, businesses should work with a vendor or provider that has experience implementing P2P automation solutions and can provide the necessary support and training.
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