Purchase-to-pay mainly thrives on digitalization. If you are looking for modern digital solutions for the purchasing process in your company, Arvato Systems has two powerful solutions: Process Mining and Business Process Management. Process Mining is especially strong when it comes to a (partially) automated way to achieve optimizations by preparing individual processes. Business Process Management is all about maintaining an overview of business processes, understanding them in their entirety, and ensuring that they run efficiently.
To map a purchase-to-pay process as efficiently as possible, you need the right software - you've just learned that. This software must consist of four elements, or rather contain these four elements:
First and foremost, e-procurement is crucial. This is an electronic purchasing process. It enables your employees to order relevant items easily. The way it works is ultimately very similar to that of an online store. So there should be no difficulty integrating this solution into your workflow as part of the purchase-to-pay process. Ideally, the order will end up with the supplier entirely digitally.
2 Electronic exchange of documents
Second in importance: the electronic exchange of documents. If all documents used in the purchase-to-pay process are exchanged electronically - and over a network - this saves a lot of time and results in lower costs.
3. Invoice automation
If you want to optimize the purchasing process in its entirety, then you need invoice automation. For this, it is necessary to formulate specific rules in the system. The system automatically matches purchase orders, order confirmations, and invoices through them, which enables automation until the invoice is posted. Only if there are no matches in the system, a person intervene in the process.
4. Electronic payment
In a digitized purchase-to-pay process, the result is a payment in electronic form. This is done by integrating payment service providers into the system.
However, before you fully automate the purchase process, you need to ask yourself: Does this even make sense for my company? To find the answer, you should get an accurate overview of the efficiency and costs of your accounts payable department. You can do this by:
- Cost per invoice,
- Turnaround time,
- Details on interest on late payments and cash discounts,
- Incoming invoices per employee in the process,
- return in investment
find out. If you know more about all five points, you will be one step closer to deciding for or against an automated purchase-to-pay process. Some aspects speak for an automatic Purchase-to-Pay - process:
- shorter lead times
- no less efficient manual work steps
- transparency for all processes
- optimal payment conditions
- foresighted planning of liquidity
- avoidance of errors and manipulation attempts