If, as an organization, you want to get a better grip on the company’s expenses and costs, then automating the invoice processing process is a logical first step. Not only does this save you valuable time, it also gives you insight into your current costs. After all, with a digitized process, your costs are recorded immediately upon receipt of the purchase invoice and only after digital approval, made available for payment. In this article, we’ll tell you about the next step in automating your procurement process; purchase-2-pay. A purchase-2-pay solution combines purchase management with invoice processing and approval. This digitizes the entire procurement process, from request to payment. We give you the 5 main reasons why your company should choose a purchase-2-pay solution.
1. Get a handle on expenses and costs in advance
Many organizations are not confronted with expenses until they receive the purchase invoice for them. Whereas automating the invoice processing process already gives you more insight into current expenses, an automated purchase process also allows you to monitor future expenses much more efficiently. This is because with a purchase-2-pay process, the verification and approval of your expenses is done in advance, at the time of request. This therefore prevents unnecessary, unauthorized or duplicate expenses.
2. Improved bargaining power with the supplier
Another advantage of purchase-2-pay is that a better negotiating position can be created with the supplier. For example, you can often make use of graduated prices when orders are bundled. Payment discounts can also be negotiated for faster payment of the invoice and it is possible to record so-called supplier assessments that can be used for periodic evaluations with the supplier.
3. No delay in the order process
With an automated procurement process, requests can be invested low down in the organization without losing control over spending. Using budgets, employees can submit requests up to a certain amount, using internal catalogs or OCI links to selected web shops. After the request is approved, the order is placed with the supplier.
4. Avoid tacit renewal of contracts
Another type of expense that is not transparent to many organizations is ongoing contracts. Consider, for example, annual subscriptions that are tacitly renewed. Recording your contracts in your purchasing management system will provide a timely signal of when to renew (or cancel).
5. Automatic matching and approval of purchase invoices
The purchase invoice is automatically matched with the order or receipt in the purchasing management system. If the invoice matches 100%, it can be made immediately available for payment using a so-called system agreement. If the invoice numbers, amounts or items do not match, the invoice is presented digitally for further review.
Is your organization ready for the next procurement process automation step? ImageCapture integrates seamlessly with procurement management software Shopper, providing an affordable purchase-2-pay solution for organizations looking to gain more efficiency in the procurement process. Want to learn more about purchase-2-pay? Have a look at our Purchasing Management with Shopper page or feel free to contact our sales team.