System integration is so much more than bright coloured cables plugged into network devices because it is the application data that needs to be quickly shared and push-pulled into one final assembly of critical management information. Business performance information that can be more easily reported on as well as quickly visualized and shared.
Benefits of Implementing a Digital Procurement to Pay Platform: This is the fourth post in a continuing series exploring specific solutions available to the many business process problems identified under the general heading of AP Problems. The first post in this series is AP Problem #1: High Defect Rates here.
Accounts Payable Problem #4: Lack of System Integration
No one gets up each day to be inefficient, ineffective, or both in operating their business. Quite the opposite actually.
As managers, we measure business processes for their efficiency, which is often defined as doing the right things, in the right way. Ideally, the goal is 100% in efficiency measure or as close to it as possible.
Similarly, as managers of business processes we strive to be effective in getting the outcome we desire for our business. Effectiveness is also often defined as doing the right thing to solve a challenge or eliminate a threat.
In today’s’ modern technological world of connected computer systems, a business process is judged for its effectiveness in meeting customer expectations and satisfaction. Similarly, the measurement of efficiency success is serving each customer consistently with a minimum of costly losses from process mistakes or failed efforts.
All of this comes down to effective and efficient communication best practices from implementing system integration for all the company’s key performance data. This is especially true in leveraging strategic procurement in purchasing and in managing a diverse network of suppliers. This is especially true for suppliers whose own efficiency performance contribute key ingredients to your business success.
It is a given today that effective communication is the key to efficiency.
System integration enables that gain in efficiency.
Communication effectiveness becomes especially true in the application of and linking together of management and financial performance software.
The 24/7 connected business with customers and key stakeholder suppliers linked together takes a lot of technology to make today’s companies run smoothly. Many offices use business process automation, HR, ERP applications, and financial accounting systems to manage various aspects of the operation. The danger of all these applications is the creation of data silos.
As the computerization of business processes has occurred over the last few decades, the piecemeal implementation of specific task software has resulted in computer systems that do not easily communicate with one another. As a result, it can sometimes feel like technology is working against you, instead of for you.
Nowhere is this phenomena of systems not talking with one another easily more prevalent than in accounts payables departments, which can result in paying supplier invoices past their due date and losing available supplier discounts on the original purchase price.
Do nothing to solve this problem is expensive.
- The very definition of inefficiency is double keying in supplier invoices into one or more systems to update one process at a time instead of a seamless flow of data between and among your software applications.
- Double-entry or even manual downloading and uploading of one system to another decreases the efficiency of your business and creates an increased risk of costly errors.
Errors that are extremely costly. PricewaterhouseCoopers is credited with figuring out that a simple, lost document will cost a company $122. on average, and to reproduce the document the cost is priced at $220. The price gets higher each year as time and labour costs advance.
Their accounting study of inefficiency costs is even more shocking in that the range is 7.6% to 10% for documents that are lost, or so badly filed at the time that they may exist, but who can find them when they need them. Figures like this are what is meant by inefficient and ineffective.
It was the lost documents and lost efficiency scenario that gave birth
to today’s seamlessly integrated SnapAP platform programmed
as a paperless, software solution for any size of business
to use as procure to pay process.
The design origins of today’s modern SnapAP in the Cloud came from a seasoned business process flow expert from the school of hard knocks learned from operations experience in large global resource-based companies.
These large companies with multiple locations to be consolidated into one reporting function were frequently suffering from lost paper Purchase Order(PO) files or invoice documentation. To solve the problem SnapAP’s solution developers started thinking through how a better system could be designed to lower defect rates.
SnapAP’s supply chain management specialist began imagining some 30 years ago what could be built with computer software that is seamlessly connected with each major software component into an integrated flow of critical purchase and payment data. Data that is transferable and available for better financial insight reporting.
From that original idea and painful research of finding a better way to process POs and supplier invoices came the design of a better more efficient and effective business process that is today’s very sophisticated effortless SnapAP. As a result of this careful research into how to program efficiency and effectiveness, SnapAP’s process flow starts at order requisitioning and continues through to confirmed payment to the supplier. Seamless.
SnapAP is proven and tested procure to pay platform that at its cyber heart
has a business rules-based process for efficiently processing supplier invoices,
and effectively managing relationships with all your business suppliers.
SnapAP is an end to end solution that integrates with your
existing software applications to provide you with an almost
real-time budget and purchasing cost control for your business.
If you are considering improving your purchasing and supplier payment process for more effective management of your supply chain network, then please consider booking a dashboard workflow demo with our business process efficiency team.
If you prefer to simply start a dialogue with some hard numbers to consider, then please consider using the SnapAP invoice cost savings calculator to get a rough estimate of available savings from AP automation and going paperless.
As a result of this custom input from you on our quick fill form, our SnapAP team will help you get a handle on how implementing SnapAP often can pay for itself in savings in cost reductions, and cost savings in capturing supplier discounts more effectively with on-time payment scheduling.
Previous AP Problems Series Posts: