Think about the accounts payable (AP) invoice process in a typical business.
Often, invoices go to multiple people in the organization rather than being centralized. A recipient manually forwards the invoice to the accounts payable department for coding and review – usually by email. Someone manually enters invoice data into an internal system, the invoices are paid, and filed away – often in a folder.
It’s incredibly wasteful, error-prone, and costly. According to the Institute of Finance and Management accounts payable professionals spend a mind-boggling 84% of their time trapped in an endless cycle of manual and semi-automated AP processes, including data capture.
With a modern AP automation solution, your employees can stop wasting time on data capture and manual processes and can instead spend it on work that really matters.
Since COVID-19 swept the world, there have been unprecedented interruptions to global supply chains. Prioritizing resilient procurement processes has never beeAs organizations are rapidly moving to digital, data-driven environments, it’s wise to migrate purchasing and procurn more crucial in the face of economic collapse.
Where cost control was previously the most important item on the procurement agenda, now your main procurement goal should relate to business resilience. Ethical practices, risk mitigation, and cybersecurity are more significant than ever.
It’s time to throw out clunky, old-fashioned manual procurement operations and replace them for streamlined automated procurement processes.
Purchase orders play a key role in ensuring you have the goods and services you need to run and grow your business.
And you likely already have a process in place to complete, send, and get them signed.
But, while relying on a manual purchase order process may have worked when your business was just starting out, as you scale it becomes more time-consuming and frustrating for everyone involved. It hampers your ability to get work done.
Do you need to streamline procurement in your organization? Are you wondering what best practices would help you improve purchasing processes further?
Well, I can only imagine the weight on your shoulders.
Your company needs to source goods and services to deliver what’s been promised to customers. Organizing it all – not to mention, doing it faster and faster while continually reducing costs – rests entirely with you.
And that’s not the only pressure you’re under. Even the shortest supply chain delay might bring the entire production to a halt.
But I can show you how to avoid those disruptions.
After reading this guide, you’ll understand the most common challenges and bottlenecks in your processes. You’ll also learn what best practices in procurement to implement to eliminate those bottlenecks once and for all.
Purchase orders (POs) play a vital role in every organization, whether it’s a university ordering library books, a company procuring raw materials for manufacturing, or an agency purchasing services from a vendor.
POs are also one of the most admin-heavy business processes. They’re prone to errors, bottlenecks, lost paperwork, unnecessary back and forth, and maverick purchases.
This can lead to incorrect goods or service delivery, delayed orders, overspending, and even outright fraud, if Purchase Order tracking systems are not in place.
According to The Hackett Group, most organizations can reduce their operational costs by as much as 45% by implementing digital procurement tools for smart data capture and workflow automation.
Sourcing the raw materials, components, products, and outsourced services needed to conduct your business is a core part of any organization’s operations.
While some business owners would argue that a smaller pool of vendors translates to better terms, service and more personal attention pricing, a growing number of businesses are making a strategic shift away from single-source supplier agreements in response to global events that threaten to disrupt supply lines or raise costs. As a result, multi-sourcing is gaining popularity as a procurement model.
Driven by organizations that seek to mitigate risk as well as businesses that seek more flexible, innovative and competitive supplier relationships, multi-sourcing offers a number of attractive advantages.
In March 2019, the Department of Justice announced the indictment of a Lithuanian man who used invoice fraud to steal $123 million from Google and Facebook. He managed to execute the fraud through business email compromise: he posed as trusted vendors and sent invoices for services that never took place.
Invoice fraud is on the rise. According to the FBI, email fraud increased by 136% between December 2016 and May 2018. While Google and Facebook managed to recover their funds, the majority of businesses are not so fortunate, and sadly, small-to-medium-sized businesses are often targeted because scammers know that they don’t have the same resources to allocate to combating fraud as larger companies.