iPurchase™  Web Presentation 

Missing Functionality for Indirect Material Purchasing?

 Rules-based Requisition Approval Routing

Real-time integrated with QAD

Requisition Approval Tracking

UNSPSC Spend Analytics

eCommerce Supplier Shopping (Punchout)

Supplier Catalog Management

Project Budgeting and Spend Tracking

Supplier RFQ

Enough said…

iPurchase™

Encore Presentation

Click here to view recorded Web Presentation

Improve Process Cycle Time by utilizing Internet Connectivity Technology

If you analyze the performance of your organization’s various business processes you will spot several roadblocks that can hamper productivity. These often involve time-sensitive communications between individuals and trading Partners, the routing and distribution of critical documents, and the enforcement of your organization’s approval policy which is applied to each process. They may relate to responding to critical needs of products or services, or just getting the appropriate approvals of requests and other documents.

How can you use the “new” connectivity to improve your organization’s business processes, and more specifically improve overall supply chain performance? What are the industry “best practices” being used, and what are the tools needed to make it happen?

In this blog we will highlight some of those ‘connectivity tools’, including:

  • Anytime/Anywhere Cloud Access
  • Supplier Punchouts (the new EDI)
  • eMail Alerts
  • Electronic Forms and Approval Workflow
  • Mobile Functionality

Anytime/Anywhere Cloud Access

What would we do without the Internet? We probably don’t remember the days that we did not have the Internet to facilitate communications, shopping, socializing, and all of the other activities we do on the web, so the answer to that question is, who knows!?

And although you would think that the subject of providing anytime/anywhere access to your business applications and data is ‘old hat’, many organizations still perform most of their business processes without the connectivity benefits provided by the Internet.

By utilizing the connectivity power of the Internet and making your business processes Cloud-enabled (ie; the people who are part of the process can participate in the process via the web), your organization can significantly improve Process Cycle Time. In a recent poll of ISS Group Clients who have Cloud-enabled their Purchasing and Sales Quoting processes, a number of companies have reported reductions as much as 500% (2 weeks to 2 days) for the ‘Requisition to Purchase Order’ and ‘Quote to Sales Order’ cycle times! This in turn has resulted in a more efficient flow of materials and an overall improvement in daily operations, as well as an improvement in cash flow.

Supplier Punchouts (the new EDI)

Requisitioning material for your organization can be performed in a number of ways. One approach is to allow your organization to requisition products and services using the “Amazon” model, or typical store website to find what they need. There are a number of issues which arise from this approach, including price inconsistency, multiple suppliers selling the same material, and process inconsistency, to name just a few. These issues result in lost productivity and lost profits. If you want your organization to be able to purchase directly from suppliers, but only for those items at prices that are part of your contractual relationship with your key suppliers, you should utilize what ISS Group calls the ‘new EDI’ capability, or ‘Punch Out’, that all major suppliers now provide. This ensures that the users only buy from approved suppliers, and at contracted prices for contracted items, and do so in an extremely efficient way that doesn’t require a user learning curve. Your organization will leverage the technical infrastructure provided by the suppliers without having to duplicate and manage the product catalog environment, and material requisitions will be created quicker with fewer data exceptions which require revision as part of the PO creation process.

eMail Alerts

We’ve all been using eMail to communicate for years, but few companies utilize the connectivity power of eMail in an automated fashion to alert internal or external resources that ‘something’ needs to be done (ie; review of a document, revision of a request, approval of a request, etc.). Of course all companies utilize eMail to communicate, but most of the communication is created by a person and not an automated alert based on a set of criteria (or rules). By automating the communication within your business processes to create eMail alerts as part of your business processes, valuable time will be eliminated from processes waiting on human resources getting around to creating an eMail to keep the process flowing.

Electronic Requests and Approval Workflow

You can reduce process cycle time by using technology to ‘digitize’ requests and enforce the approval policy of various business processes within your organization. Technology such as rules-based electronic approval workflows working together with eMail alerts make many request process actions automatic and fast, without requiring unnecessary approvals when requests are within budget and the approval authority of the person making the request.

From ISS Group’s experience, many organizations continue to use paper forms (or Excel forms) for approval requests and routing those forms via sneaker-net or manually created eMails.

Here are some key findings in a large study on paperless processes from AIIM – 2013 (www.aiim.org) the data below comes from the AIIM Market Intelligence Report “Winning the Paper Wars.”

What are the biggest problems caused by paper-based processes in your organization?

1. Time spent re-keying data, searching for paper copies and filing 48%
2. Storage volume and outsource paper storage costs 44%
3. Inability to monitor workflow progress 41%
4. Lost paperwork or request forms 39%
5. Compliance and audit issues 29%
6. Poor access to process documents for front office or staff 25%
7. Inability of staff to work from road or home 19%
8. Delays introduced by post, courier, or mailroom 18%
9. Difficulty of allocating or re-locating workloads 13%
10. None of these 4%

Other issues highlighted were difficulty of version control, cost of paper supplies, and the endless chase for “wet-ink” signatures.

Clearly, eliminating paper (or Excel) forms will have a significant positive impact on process cycle time, as much as a 4:1 reduction, as well as other benefits documented by the AIIM study, such as:

 

1. Better records for audit trail or compliance 53%
2. Faster customer/supplier response 50%
3. Better monitoring of status and workloads 40%
4. Reduced staff resources 36%
5. Fewer errors 30%
6. Visibility/access for non-process staff and requisitioners 25%
7. Better management of exceptions 18%
8. Improved ability to outsource or load-share 9%

Mobile Functionality

Out of the office? Well, that should not be a reason a process is held up!

Everyone carries a mobile device, and most business professionals carry a smart mobile device. By Cloud-enabling your business processes you can alert the people who need to participate within a given process by an automated eMail or text message, allow the user to review and revise if necessary any data which requires the users input, and approve or reject a request directly from their mobile device. For people who live on the road this connectivity functionality will keep the process moving forward and eliminate ‘process cycle lag’ due to resources being out of the office.

Conclusion

The Internet and technology (software and hardware) which leverages the connectivity power of the Internet will assist your organization reduce Process Cycle Time which in turns improves productivity of activities which are performed as part of Supply Chain Management processes. By reducing cycle time and improving productivity, supply chain performance is improved leading to cost savings and increased profits.

In summary:

  1. With regard to trading partners such as suppliers, take advantage of the tools made available by your suppliers to improve connections and response time (such as Punchouts).
  2. Implement process tools (such as eMail Alerts and Electronic Approval Workflows) to streamline communication and enforce policies so that technology assists (and not hampers) your employees efficient participation in critical business processes.
  3. Eliminate paper (and Excel) forms within your processes.
  4. And last but certainly not least, utilize smart mobile devices in critical processes where people who need to participate in the processes may be out of the office.

Click here and register for our Webinar on May 22nd and learn more about ‘How to’ use connectivity to improve supply chain performance…

 

‘How to’ use connectivity to improve supply chain performance

Encore Presentation

Click here to view recorded Web Presentation

ISS Group will be presenting a webinar discussing one of the critical metrics in supply chain performance, process cycle time, and demonstrating how various ‘connectivity tools’ are being used to significantly reduce process cycle time, improve supply chain performance, and participate in new collaborations with suppliers. This includes new EDI, eMail alerts, electronic approvals, integration across social networks, and expanded mobile functionality.

Encore Presentation

Join Dr. Kevin McCormack and ISS Group

Recorded Thursday, April 17th 12:30pm EST

Click here to view recorded Web Presentation

Dr. McCormack offers research suggesting the future of a Networked Supply Chain and what is needed to be successful:

  • The supply chain world is more connected now than ever before. Social media and collaborative networked applications are commonplace
  • Mobile apps make the office “everywhere”.
  • How do you use this connectivity to improve supply chain performance?
  • What are the best practices currently being used and under consideration?

 

 

Integrated Image-300x225ISS Group and MaxRecall Technologies form Strategic Alliance offering an integrated Business Process Automation suite and rules-based Workflow solution to the QAD ERP Community

ISS Group continues to strengthen and expand its core Business Process Improvement solutions portfolio using AART™; their innovative Approval Routing and Workflow technology, with the Document Management, Data Capture and EDI data delivery solutions from MaxRecall Technologies.

 Middletown NJ— March 1, 2014 — As part of their ongoing efforts to deliver value to the QAD ERP user community, ISS Group (ISSG), an IT business solutions provider delivering Business Process Improvement (BPI) solutions utilizing their Advanced Approval Routing Technology (AART®), is extremely pleased to announce a strategic alliance with MaxRecall Technologies (MaxRecall), a leading provider of Business Process Automation solutions in the mid-market Distribution and Manufacturing industries. The alliance will allow ISSG to offer document and data capture, storage, and retrieval capabilities as part of their BPI solutions.

“We are very excited in forming this alliance with MaxRecall to extend the value of our QAD EA BPI solutions”, states Andy Weinstein CEO of ISS Group. “The ISSG rules-based workflow technology and the MaxRecall Business Process Automation solutions complement each other very well, affording QAD end-user organizations a more complete solution to capture, route, store and retrieve the documents associated with various business processes. MaxRecall has had significant success marketing, implementing and integrating their solutions within major ERP providers in the Distribution and Manufacturing user communities, so we are confident that their solutions will provide significant value to the QAD user community as well.”

 “Our solution suites have been developed on the premise that ‘Documents and the information they contain drive all business processes.’”, says Raymond Brooks CEO of MaxRecall. “By aligning our document based business process automation solutions with the ISSG rules-based workflow technology our alliance will leverage the value of both of our offerings and provide our Clients with more flexibility in designing and executing many of their business processes. The MaxRecall solutions have been providing value to hundreds of Distribution and Manufacturing organizations for over fifteen years, and we look forward to working with ISSG in bringing this value to the QAD user community.”

 About MaxRecall:

Founded in 1999, MaxRecall Technologies Inc. provides a suite of document based Business Process Automation solutions that easily and efficiently integrate with industry application solutions. This allows companies large and small to streamline their document based business processes resulting in increased efficiency and lower cost. MaxRecall is committed to providing organizations with a solutions tailored to their needs that produces real, concrete results. For more information about MaxRecall visit their website at www.maxrecall.com.

About ISS Group:

Founded in 1986, ISS Group develops and markets Business Process Improvement solutions to the QAD ERP user community. Utilizing their Advanced Approval Routing Technology (AART®), ISSG’s BPI solutions are being used by many mid-sized and large QAD end-user organizations in the Medical Device, Industrial/Electronic, and Automotive market segments. For more information about ISS Group visit their website at www.issgroup.com.

Understanding Tail-spend Management

Introduction

World-class organizations today have a good level of control over most of their cost structure. As this visibility and control increases, eventually a point is reached when the effort required to go further appears to be greater than the benefits. At this point, CFO’s looking to find new savings opportunities, such as tail-spend management; as such challenges arise:

  • Poor data visibility
  • Lack of effective controls
  • Little market leverage
  • Low potential savings
  • Lack of interest from other stakeholders
  • Lack of category expertise in the very high number of categories remaining

Organizations often find it difficult to define and execute a unified approach with the goal of capturing this last portion of source-able spend. Traditional strategic sourcing approaches need to be flexed and made more resource-efficient, and technology and transactional procurement processes also have a critical role to play. Attempts to address this challenge have led to the appearance of a new vertical within Procurement departments; Tail-spend Management (TSM). In challenging economic conditions, where Chief Financial Officers (CFOs) are leaving no stone unturned in the quest for cost reduction, TSM is becoming a hot topic in medium- to high-maturity procurement organizations.

Definition of Tail-spend

The term, “tail spend”, is derived from the Pareto principle (80 / 20 rule), which states that only 20 percent of your suppliers will account for 80 percent of your spend. Accordingly, 80 percent of your suppliers will account for 20 percent of your spend, and this ever-thinning series drawn in a block graph looks like a tail. Note that the Pareto principle works more or less exactly depending on data sets, while the 80/20 ratio will vary from firm to firm depending on a number of variables. In some firms, 80 percent of suppliers may account for more or less than 20 percent, but in most cases the true figure will be close to 20 percent.

Many organizations, and many external consultants, develop an approach to tackle only the “theoretical” tail-spend, which fits criteria such as the bottom 20 percent by value, low Purchase Order volume, non-contracted spend, and so forth. A theoretical definition often makes the isolation of such spend a daunting task in itself. ISS Group (ISSG) prefers to use a different, wider definition based on the realities of the challenges faced by our clients over the years. For ISSG, tail-spend is quite simply unaddressed spend, by which we mean spend on commodities and categories that have not been formally addressed by Procurement in the last two to three years. (If you have not addressed those categories accounting for at least 60-70 percent of your spend in the last two to three years, it is unlikely that your focus is going to be on tail spend anyway.) By using this definition we believe organizations can avoid wasting time on theoretical definitions and can much sooner get to work tackling the real issue; unaddressed spend and new savings opportunities.

Qualities of Tail-spend

The large number of categories within tail-spend varies from firm to firm, but regardless of the specific categories, tail-spend displays a number of common characteristics:

  • It rarely includes direct materials
  • It contains a disproportionately high percentage of spend from the furthest-flung subsidiaries of the organization
  • It often contains suppliers that no one in the procurement team has heard of
  • Non-compliance and maverick spend often lurk here
  • A majority of it is either not low-price, or not low-volume

This last point may seem surprising, but it is one of the most important things for organizations to understand when considering tackling their tail-spend for the first time. Significant parts of tail-spend can be addressed using well-established sourcing techniques. The key, especially given the challenges we listed right at the very start, is how to execute effective sourcing strategies while maximizing efficiency. The low value of tail-spend categories means that return on investment (ROI) is always going to be lower than for core categories. Successful approaches will have an eye on both sides of the efficiency/effectiveness equation.

Approaching tail-spend management

There are many ways to approach tail-spend management (TSM) and the best results are achieved by following a variety of approaches simultaneously. Like other types of sourcing, an iterative loop is involved, whereby data is constantly reviewed in the light of previous sourcing activities and changing business requirements.

1. Spend analysis

The starting point here is data. Best-in-class spend analytics software will accept data from a variety of sources, such as Accounts Payable, General Ledger, ERP systems, etc., and typically classify around 95 percent of those data at the first iteration, already deep into a 20 percent tail. Over time this classification can improve even closer to 100 percent; indeed proactive TSM will actually improve data classification over time. Best-in-class spend analytics solutions will allow you to drill right down to the line item level, critical in the next stage, which is classifying tail-spend data.

2. Filtering

Deep-dive data analysis (UNSPSC Coding) will support filtering and re-classification of tail-spend so that appropriate strategies can be employed by category. We typically use filtering models to ensure that different types of tail-spend are addressed in an appropriate manner.

3. Sourcing

Some tail-spend categories will be identified as appropriate for more traditional sourcing approaches. Here the key is efficiency. Online RFQ (iRFQ) tools can hugely improve efficiency by leveraging standardized templates and engaging multiple vendors simultaneously. The time, effort, and number of vendors included can also be flexed in line with value and sensitivity of spend.

Accelerated sourcing projects match effort to reward and ensure that a higher volume of projects can be run simultaneously by TSM resource. Of course, carrying out sourcing projects on tail-spend categories drives an ever-higher percentage of spend under contract and has many benefits in terms of risk management and sustainability as well as cost savings.

4. Spot buys

Whilst the approach so far has been top-down and data driven, bottom-up approaches to addressing spend at the point of requisition are also excellent methods for realizing benefits from proactive tail-spend management. Spot buys will frequently follow an even more accelerated sourcing process, and here again filtering and classification is essential to proper prioritization and optimal results.

If spot buys are channeled through Procurement, then repeat spot buys in low-volume categories can be identified and driven onto contract through sourcing over time, while ongoing spot buys can benefit from accelerated sourcing techniques such as 3-bid and buy.

5. P2P

And finally, also in terms of a bottom-up approach, driving as much low-value spend onto technology platforms such as P-cards, online catalogues and punch-outs gives Procurement much greater visibility and control over tail-spend and greatly reduces manual effort. Best-in-class purchasing modules, iPurchase, will manage all of these platforms in one place. As more spend is driven online, data quality is improved, so that when spend analysis is refreshed an ever-greater percentage of data visibility is achieved and the iterative loop can start again.

Critical success factors

A good understanding of the nature and challenges of tail-spend is not difficult for procurement professionals to grasp, but given an expectation of low ROI, data challenges and at best lukewarm interest from the rest of the organization, knowing what to do and how to do it is not so clear. ISSG has been working with local and multi-national clients and their CFO’s to find new saving’s opportunities since 1997, and our experience demonstrates that the following are the three critical success factors:

  1. Procurement Technology
  2. Simplify processes and increase control
  3. Establish dedicated resource and manage performance

Conclusion

With tail-spend management, take unaddressed spend as your starting point and deploy a variety of approaches to reduce this spend and bring it under control (iPurchase). Having the right tools and processes in place are vital in tackling tail-spend, but having dedicated and specialist TSM resource is equally crucial. Making significant advances in data visibility and contracted spend will help you further your risk management and sustainability objectives over time, while a difficult economic environment is paradoxically the perfect time to tackle your tail-spend.

View On-Demand

Click here to view recorded Presentation

Presenters: 

Bruce McIntyre, ISS Group 

Dr. Kevin McCormack, JK Analytics 

Business Process Improvement
Streamlining the way your business…Performs business!

If you’re having a difficult time answering one or more of the following key questions, then this Web Presentation is a MUST SEE…!

  • What is average cycle time from requisition start to PO issue?
  • Do you know how many MRO suppliers you have?
  • Do you know when you buy the same item under different names from different suppliers?
  • Do you have an accurate Spend Analysis (overall,  by supplier, and by category)?
  • What is service level of supplier deliveries (out of stock, slipped delivery dates, wrong prices)?
  • Do you have to approve MRO buys against budgets?

Guest Speaker:

ISS Group is delighted to have Dr. Kevin McCormack of JK Data Analytics joining us and presenting this key business process. Dr. Kevin McCormack, a Professor at Skema Business School and Northwood University has over 30 years of business leadership, teaching, research and consulting experience. He is considered to be a foremost expert on Procure-to-Pay Optimization and we we’re very excited for him to be joining us in this presentation; lending his valuable insight and experience. Some of Dr. McCormack’s works include:

        

Also joining us will be Julie Kohr of MaxRecall Technologies Inc. MaxRecall provides document management solutions that easily and efficiently integrate with industry application solutions. This allows companies large and small to streamline their document processes resulting in increased efficiency and lower cost.

ISS Group, an IT solutions provider since 1986 delivering Business Process Improvement (BPI) solutions utilizing our Advanced Approval Routing Technology AART®) a rules-based collaboration and workflow engine designed and developed by ISS Group® to provide for the routing of electronic Process Forms throughout an organization, such as Purchase Order Requisitions, Sales Quotes, Expense Requests, Financial Control Documents, Production Requests (i.e. Scrap Authorizations), HR Requests, etc.,  for the purpose of review, revision, and approval/rejection of the Process Form in order to perform an action upon final approval, such as creating a Purchase Order, creating a Sales Order, authorizing a payment, updating data within an ERP master table, etc.

To learn more about ISS Group and our solutions, please visit our Website at www.issgroup.com, or contact us at or 888-547-7476. We also invite you to attend one of our ongoing informative Webcasts, on-demand Webcasts, or contact us to schedule a private, no obligation demonstration of any of our solutions.

Join Dr. Kevin McCormack and ISS Group in a joint session on Monday, March 24 at 4pm

The supply chain world is more connected than ever before. Social media  and collaborative-networked applications are commonplace.  Mobile apps make the office “everywhere”. How  do you use this connectivity to improve supply chain performance? What are the  best practices currently being used and under consideration?  This presentation presents recent research  suggesting the future and what is needed to be successful.

MWUG Spring 2014

March 23-25, 2014

Eaglewood Resort & Spa, Itasca, IL

Chicago Marriott Oak Brook

Program Agenda

Registration is now open for MWUG’s Spring  conference  at the fabulous Eaglewood Resort & Spa in the heart of Chicagoland! As always, our conference will be highlighted by two full days of valuable QAD education and networking opportunities with your Midwest peers …and of course, a little fun!

KEYNOTE ADDRESS:

Bridging the Chasm Between Business Stakeholders and IT JOE TOPINKA CIO & VP Multichannel Commerce, Red Wing Shoe Co.
Session Highlights:•  Simplifying Compliance & Materials Management•  Enterprise Edition Financials•  QAD Monitoring Framework•  EE Implementation: On Time & On Budget•  MMOG/LE Version 4

Plus, Customer Case Studies on:

•  EDI Implementation

•  QXtend Interface

•  Lot Control/Traceability … and much more!

Join Dr. Kevin McCormack and ISS Group in a joint session on Monday, March 10 at 1pm

The supply chain world is more connected than ever before. Social media and collaborative networked applications are commonplace.  Mobile apps make the office “everywhere”. How do you use this connectivity to improve supply chain performance?  What are the best practices currently being used and under consideration? This presentation offers research suggesting the future and what is needed to be successful.

 

Spring2014
  User Group Conference              

March 9-11, 2014
Hilton University Place
Charlotte, NC

Registration is now open for SEUG’s Spring Conference in Charlotte – March 9-11! We have two full days of valuable QAD education and training, customer case studies, and peer networking! If you are a Southeast or East Coast QAD user, this is the one user group event you don’t want to miss!
Session Highlights:

  • Hidden Treasures in .Net UI
  • QAD Enterprise Edition Financials Update
  • Disaster Recovery Planning
  • QAD Performance Tuning
  • QAD Global Requisition Process
  • QAD On Demand

SEUG is coming
to Charlotte!

Program Agenda
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Vendors… Exhibit and Sponsorship opportunities are now open for this event. Please  for participation details.

 

Procure to Pay Optimization: As your company looks to move beyond just “procurement” and into a complete supply chain system, one of the key challenges is to find ways to improve efficiency in the procure-to-pay (P2P) business cycle especially in the area of facilities maintenance, production machine repair, field service, business supplies, and on-site contracts for services. Challenges also exist where field people are working from manual or electronic systems, requisitioning on-site services, and making sure that the data from these activities is captured effectively.

Equally important is ensuring that the proper service levels agreements are honored, proper prices are charged, purchase orders are delivered quickly, received invoices match the purchase order, and the supplier is paid the correct amount for the products and services that are actually delivered.

While your enterprise system may claim that these activities are correctly defined in its business logic, the reality is that there are many chances for errors and delays. Without a planned process for managing the P2P cycle, your organization may be faced with significant costs as a result of non-compliance to the process requirements.

What is the Procure-to-Pay business process?

In obtaining procure to pay optimization, first most organizations are faced with the issue of determining, defining, and using their buying channels, depending on the situation in which the requirement occurs.  All purchases are not the same.  A “buying channel” is a process to specify a need, locate the supplier of that need, determine the terms of the purchase, and execute an agreement with one or more suppliers to fulfill that need.  An efficient and effective process is designed to fit different situations and circumstances identified by the end users of your P2P process.

What are the activities in this process?

  1. Ensure that internal customers are able to easily define and select the right products and materials from the right supplier for the best overall value, with delivery to the right place at the right time.
  2. Cost efficient execution of the process.
  3. Effective and efficient communication between the requester, the buyer, and the suppliers for the goods and services purchased.
  4. A high level of data integrity to be able to track the effectiveness of the process.
  5. Provide buyers with the information they need to effectively leverage contracts for sourcing materials and services.
  6. Ensure invoices are accurate and approved; make sure to take advantage of any discounts and quick payment options that are offered.

How can these activities be improved?

  1. Users should effectively use all of the tools at their disposal to determine what they need.  The products and services that are under contract should be chosen from internal browser-based catalogs, or on-line supplier catalogs, and clearly defined so the buyer can identify appropriate products and services to fit the need.
  2. This process should be accomplished with the tools that users already have at their disposal, including email, web browsers, supplier performance tracking, contract management, phones, and tablets.
  3. This process should be a collaboration, with instant communication between the requisitioner, the approvers, the buyer, and the supplier.
  4. You need to capture all of the pertinent information in the process.  Who requisitions? What is requisitioned? Who is the supplier? Was it the correct price? Was delivery on time? Was the invoice correct when received? Is the item or service something that can be contracted for better price and performance?
  5. Once you have the information, you can go back to key suppliers and negotiate for better contracts.  That could mean better prices and better quality, better delivery, faster response, and many other attributes beyond just price.
  6. Find ways to cross check supplier invoices against purchase orders more quickly and effectively, with approvals required on invoices executed quickly.  Make sure that Finance is aware of any pre-payment or other discounts, such as annual volumes.

What are the benefits of these improvements to the entire P2P process?

There are several key benefits to these process improvements.  One of the biggest is that your organization will gain greater transparency and control over its external spend, while providing maximum flexibility to make sure the various needs of your organization can be met. By capturing all of the data of the procurement process, you give your staff the ability to change their mode from “pushing” transactions through a system to strategic sourcing and contracting.  As process disconnects are identified, key changes can be planned.  In addition, as transactional details are reviewed and analyzed, buying channel and spend concentration analysis is also done. You can compress the time lost in approvals of requisitions, specifications, and invoices. Once a process is optimized by automating most of the approvals processes, the time saved can translate to faster delivery of needed items, reduced inventory of standard items, and better relationships with your suppliers.

When you establish close ties with key suppliers, your users can find what they need directly on the suppliers own websites or on locally maintained electronic catalogs, ensuring that they buy only contracted products from approved suppliers. When employees can perform their functions easily from wherever they are, using the tools they are familiar with, the process can run smoothly. When rules can be set up to approve documents so that there are fewer roadblocks, the process speeds up.

In most cases P2P efficiency can be increased 20%-30% and transactional costs can be reduced by 30%-50%.  Reduction in the number of suppliers can be achieved by identifying key partners to source across multiple services or product lines, giving additional options for contract savings.

For more information on this subject, stay tuned for our upcoming Web presentation coming in January 2014.