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cost savings in invoicing

How To Cut Costs Per Invoice By 200 Percent

August 13, 2019/in Blog /by EqualLevel

During an organization’s ordering process there are typically numerous intricate steps, and various factors to consider before an actual order can be placed. 

Purchase orders (POs) often involve complex approval workflows, multiple budgets, hundreds if not thousands of suppliers and contracts, endless data, and millions of dollars.

Organizations often struggle with how to manage this process without losing both visibility and control. 

This becomes an even bigger issue when considering the widespread nature of the procurement process and its interconnection with multiple other departments. These relationships make it far more challenging to assess and determine where and how improvements can be made.

In a 2018 study conducted by PayStream Advisors, now Levvel Research, over 400 organizations were surveyed to determine the latest trends surrounding procurement management. 

The following pain points were uncovered: 

  • Inadequate technology 
  • Procedural differences across departments and/or locations
  • Frequent off-contract or off-budget spending
  • Too much paperwork
  • Disjointed systems
  • A lack of visibility and/or control overspending

Firms Benefit from Utilizing Email to Send POs

An organization’s control overspending can be significantly impacted by a PO’s format and how it is submitted to suppliers. Fortunately, the majority of organizations surveyed are either using eProcurement software or email to send POs. These methods provide more visibility and greater control for organizations compared with those organizations using manual or uncontrolled methods, such as over the phone or ad-hoc online ordering. 

Reduced Cycle Time: Greatest Benefit to Procurement Automation 

Most mainstream organizations have some kind of automation in place whether it be a homegrown procurement tool or a built-in tool that is embedded within their ERP system. While these companies have a more efficient way of processing their POs than novice companies, their cost per PO still remains rather high. 

Organizations utilizing cloud-based eProcurement tools are required to have little manual involvement in their procurement process and can, therefore, process POs at a much lower cost. In fact, their cost per invoice is almost 200 percent less when compared to that of novice or mainstream companies. 

Aside from lowering processing costs, other major improvements and benefits to procurement automation include reduced cycle times, improved visibility and transparency, and enhanced control and security.

Is your firm looking to cut costs per invoice? Contact EqualLevel, a platform bringing sophistication to the procurement space.

https://equallevel.com/wp-content/uploads/2019/08/helloquence-OQMZwNd3ThU-unsplash-scaled.jpg 1709 2560 EqualLevel https://equallevel.flywheelsites.com/wp-content/uploads/2020/10/1197025300847829.Oq83sobdrmEeVli8LKgm_height640.png EqualLevel2019-08-13 18:41:072020-11-25 09:08:25How To Cut Costs Per Invoice By 200 Percent
procurement tech updated

Are You A Part of The One-Third Using Inadequate Tech?

August 13, 2019/in Blog /by Matt Bizet

In a 2018 study conducted by PayStream Advisors, now formally known as Levvel Research, over 400 organizations were surveyed to determine the latest trends surrounding procurement management.

During this survey, organizations without cloud-based eProcurement software were asked about their top pain points. One-third of firms revealed that their primary problems were inadequate technology and procedural differences across departments.

And when asked, if an eProcurement solution was not in use, just how were their firm’s monitoring purchases made by members outside the procurement department? The results revealed the following:

46% – Purchase requests are submitted to a manager in individual departments.

40% – Purchase requests are filled out and submitted to a manager in procurement.

14% – Any employee can submit a purchase order directly to a supplier.

Typically, when organizations lack a formal process, they request the employee looking to make a purchase, to check their item against their own budget. If not, they are asked to consult with their procurement manager. While this process is not as effective as an eProcurement system, it’s still a process. This process, however, can be very difficult to maintain and lacks complete visibility and/or control over departmental spending.

With too many handoffs in place, the data in the purchase request or PO can be compromised, leaving the overall purchase order lifecycle greatly extended.

In addition to that, when purchase requesters in different departments have the authority to submit POs directly to suppliers, the organization has a much higher risk of maverick spending. That said, when it comes to a proper purchasing approval process, it’s crucial to find a balance between two critical factors: control and simplicity.

Is your firm lacking a formal purchasing workflow? Contact EqualLevel, a platform bringing sophistication to the procurement space.

https://equallevel.com/wp-content/uploads/2019/08/carlos-muza-hpjSkU2UYSU-unsplash.jpg 1728 2426 Matt Bizet https://equallevel.flywheelsites.com/wp-content/uploads/2020/10/1197025300847829.Oq83sobdrmEeVli8LKgm_height640.png Matt Bizet2019-08-13 10:47:552020-12-04 16:52:51Are You A Part of The One-Third Using Inadequate Tech?

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