Handling purchase orders and invoices may be a bit hectic and may lead to the creation of so many errors. However, the automation of these processes can have a positive impact on a company's cash flow and suppliers.
A significant number of companies generate purchase orders and manage invoices on paper or even through Excel spreadsheets. This consumes a lot of time for the accounting staff to input data, forward forms, review the data for accuracy and, finally, make payments. It also creates opportunities for errors such as placing an order for something twice or losing an invoice which can affect the financial health of a business.
Automated solutions for purchase orders and invoicing help save time, and cost, and enhance supplier relations as well. Electronic procurement links all purchase order and invoice information into a single cloud-based system accessible across the organization. This means that purchase orders that have been approved can easily be forwarded to the vendors thus reducing the workload of the procurement staff.
Another feature of the system is that it can also link invoices to the respective purchase orders for ease of processing and approval. Some of the solutions also work with accounting software, which means that payments can be made in one click. This has the effect of dramatically reducing the time it takes to clear accounts payable.
Faster invoice processing implies that the suppliers are paid on time hence making them loyal to your business. Instead of spending countless hours on such routine tasks, procurement teams can invest more of their time in strategic activities such as searching for new suppliers or constantly striving to negotiate better terms and conditions.
Therefore, automating purchase order and invoice processing is a win-win solution that enhances efficiency, cash flow, and supplier relations - the tripod that supports a competitive supply chain. Relocating from paper and spreadsheet methods to using integrated automation solutions saves costs, in addition to enhancing the relations between the business and its partners. This is good news for suppliers since the findings show that they are likely to be a reliable source of quality goods and services if paid promptly and regularly.
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