The Digital Transformation of the Purchasing Process
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Transcript of The Digital Transformation of the Purchasing Process
Welcome to theInvu User Conference
Real Life Benchmarks: The Digital Transformation of the Purchasing Process
Plan:Time is money[Lack of] Control is moneyInvoice Automation and Purchase Requisition to OrderTrusting the machine Change managementThe Requisition to Order ProcessThe Invoice to Payment Process
Efficiency excess effortTurnaround time (now a duty to report for large business)Enable focus on critical thinking and high value issues CONTROL!
Time is Money:
The Small Business, Enterprise and Employment Act 2015 created a duty on large businesses to report on their payment practices.Larger Businesses onlyStart Measuring from AprilReport every 6 monthsPerformance: % invoices (Count) paid in 30-60 - Over 60Contract terms & more
New - Duty to Report:
Invoice Automation:
To Intro Julie a quick Definition slide?5
Requisition to Order Automation:
Budget View
Coded Lines
Easy &MobileApprovals
Trusting the Machinea process in itself:
350 Staff, 30,000+ Invoices per annumHad no central PO system (just dept. spreadsheets)Had already purchased ERP POP moduleMore recently had already successfully implemented Invoice ProcessingStill wanted a purchase control solution because:Auditor demandOperational fitness strategic aimDemonstrate VFM an HA community directive
Adactus Housing Association:
Requisition to Order:
Auto-place:Emailed/Upload PDF ensures the Order presented to Supplier matches the systemVia Phone/Tablet:Approvals can be done quicker and easier with mobile interfaces
Purchase Process Metrics:
Days from Request to ApprovalAverage 0.5 Day for ApprovalAverage 0.5 Day to then raise OrderMost Request to Raise within 4 hours
Purchase Process Metrics:
PostEmail(Auto)PhoneFaxOnlineOrder Placedvia
1 LineOrder2 Lines3Majority of Orders are 1 line item
Invoice to Pay:
Slower Receive:Manual save from emails (PDF) orScanned onto Photocopiers from Departments
Fast Receive:Auto-capture from [email protected] department scanning
Header NarrativeAnd VAT splits by AP staff
Straight throughprocessing
Invoice Process Metrics:
SameDay1 Day234Mean Days from Receipt of Invoice to Posting = 5Mode Days from Receipt of Invoice to Posting = 1
SameDay1 Day234Time to Approval (where needed)24%TouchlessInvoices2/3Not receivedBefore Invoiced
Invoice Process Metrics:
24%Touchless: Straight through processing16%Light Touch: Matched but required (only) Receiving Simple Variation Partial InvoicesComplex InvoicesConsolidated Invoices60%40%Heavy Touch: Approval & balancing required
Keep Orders simpleIncreased likelihood of auto-matching with InvoiceBetter traceability, more 1-1 with InvoicesLess interlock with other staff/transactionsAutomate the receiving of InvoicesRequest emailed invoices not paper, Request Invoice per Order, not consolidated (cause thats for humans)Use a dedicated email address; [email protected] => Audit
Making room for the real queries (1):
Simple process flow Keep the process as linear as possibleSimplify the process when you automate dont replicate a complex processTrust the data & the machine reduce approval steps
Making room for the real queries (2):
Thank you for listeningwww.invu.net