Which Comes First – Invoice Automation or eProcurement? Part I
It goes without saying that every company is attempting to reduce overhead costs. One area being examined is Accounts Payable.
Our customers have demonstrated that invoice automation can clearly lead to a substantial reduction in manpower in AP, in some cases, up to 75%.
Companies most successful in streamlining invoice processing initially concentrate on the PO process and tackle the invoice automation question second.
The reason for this is simple: all purchases managed through a formal PO process are candidates for automatic 2-way or 3-way invoice matching; good P2P software does this automatically. This requires zero manpower for the vast majority of invoices that are for PO purchases. The more spend managed through the Procure-to-Pay process, the more chances there are to reduce overhead costs.
Although this isn’t necessarily the “low hanging fruit,” it has the greatest impact on cost reduction potential.
Tags: AP, Invoice Automation, PO process