Are you still using manual procurement processes for raising orders, ordering goods and reconciling invoices? Most companies we speak to are considering digitizing their procurement operation in some way.
Using digital technology to transform the procurement processes should lead to enhanced customer interactions, improved efficiency, reduced costs and help make an organisation more competitive.
Here are 4 good reasons to stop using manual processes and digitize your procurement.
One of the most obvious reasons to digitize procurement is to reduce errors. Automating repetitive manual tasks such as processing orders and reconciling invoices will reduce the numbers of mistakes that occur in the process.
According to a recent McKinsey&Company article the automation of invoicing receipt and processing is the most commonly automated procurement process. This is hardly surprising when you consider the time saving benefits to an organization that come from automating this process.
A client of Claritum’s found the task of managing invoices was so time consuming and laborious it took 11 people to do it. After implementing the Claritum platform the client now only needs one person to carry out the task of reconciling invoices.
The challenge was matching invoices, PO’s and receipts. PO’s frequently could not be matched up to orders or receipts of the same quantities or costs. Invoices were received in a variety of ways such as by fax, post and email and they were sent in multiple currencies.
Claritum’s procurement platform solves the reconciling problem by automating a 3 way match between the PO, goods receipt and supplier invoice. Invoices are automated and data is sent to the accounting platforms and settlement systems to enable payments. Details of the invoices are fully recorded and tracked.
3Improve Your Customers Experience
Digitize your order process by introducing customer storefronts. Catalog Management Software can be used to capture and processes orders from large numbers of customers. Today’s customer expects to be able to access ordering systems online and on mobile devices. They can become frustrated by companies that still use manual systems. Implementing a customized customer catalog will improve the customers experience leading to greater satisfaction and bringing more spend under management.
4Access Improved Analytics
When procurement processes are manual accessing meaningful data can be challenging. The process of information gathering will often involve collating information from different places such as excel spreadsheets, ERP systems, accounting software, databases and manual forms. Often the data doesn’t match up and agree. Using digital reporting tools effectively to create an automated procurement dashboard is a useful tool for businesses that want to access to good reporting and analysis.
READY TO DIGITIZE YOUR PROCUREMENT?
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