Once again, this area is often considered to be outside the systems appetite for small to medium sized organisations viewed as the preserve of only the largest, enterprise organisations. At Wave, we believe that if you need to forecast your cash position then you need to know what your teams are thinking about buying and what they have already committed to spend. It’s too late to simply, process an invoice efficiently for payment if you weren’t expecting that invoice to arrive until it shows up. It’s the sure-fire way to leak cash from your operations.
Everyone raises instructions to suppliers to deliver goods and services, but often use a variety of different methods including verbal, email, paper forms, and , yes, still some use fax machines etc. These are all valid but they don’t provide a digital record in your systems to help you forecast future cash requirements. It is important that you provide a simple, online system for your teams to request goods and servicesto capture the value, so you can readily know what the spend horizon and subsequent cash requirements are looking like.
Coupled with authorisation processes it is possible to minimise rogue, or maverick, spend and ensure that you are only spending money on supplies that are critical to the organisational objectives and perhaps, check that they remain within the limits set by your delegated budgets. Control of purchasing doesn’t need to constrain your employees, rather it brings them into the corporate digital records world where everyone benefits from the result.
Finally, recognising that detailed knowledge of spend, beyond the narrow scope imposed by the financial chart of accounts, can help you negotiate better prices and terms with your suppliers. After all your FMS won’t typically tell you how much you are spending on say, specific grades of paper, and with which suppliers, whereas a P2P solution will know precisely the prices you are paying line by line from the order and/or invoice, which data you can then use to negotiate better prices or alternative brands from existing or potential new suppliers.
Watch this short introductory video to learn about why we think iPOS eProcurement is the solution you should use if Infor SunSystems is your FMS.
As part of a P2P solution our partner Document Management Solution (DMS) provider furnishes our customers with Accounts Payable (AP) automation including the digitisation of supplier invoices to use capture technology to automatically read, interpret, verify and validate invoices before posting them to your ledger automatically.
If you are considering the ERP route for your business administration system then this video outlining how Oracle NetSuite delivers purchasing management within the ERP footprint will be of interest. Click to start watching.
Check out our product pages for the iPOS P2P add-on for Infor SunSystems FMS provided by Wave from our partner Professional Advantage and look further into the integrated ERP suite from Oracle NetSuite where powerful capabilities provide a range of approaches to shorten the source-to-pay cycle.