Tag Archive - Supply Chain Automation Platform

5 Ways to Reduce Administration Costs

 

Despite the turn of the year, 2012 looks set to be another year of austerity and cost reductions. Several well known names from the UK high street have set the tone by reporting less than impressive Q4 results and some are even entering administration.

Here are five suggested ways to reduce operational costs through increased backroom efficiencies.

Administration costs, Smart Admin, e-Invoicing

  1. Adopt e-Invoicing
    By converting to digital invoicing, a business can make immediate savings on staffing, stationary, postage. Factor in slightly less tangible factors such as time and the argument for e-Invoicing is hard to ignore when investing to make greater savings.
  2. Create dynamic pricing and discounting structures
    Offering customers discounts for settling payments early may reduce profits, but a healthy cash flow and balance book is preferable to a sheaf of outstanding invoices. A scale of sliding charges and fees can require intensive intervention to oversee however, so companies introducing such a system should look at implementing our third recommendation simultaneously.
  3. Automate your workflow
    To combat costly human error, introducing automation can speed each step of the payment process by removing the need for manual intervention. The less manual processing that is required, the smaller the margin for error and the less workforce required for accounts payable.
  4. Centralise
    Bring your financial operations into one department. Managing finances across different departments is time consuming, and if time is money, delays in financial processing cost your business. Cut the delays by bringing financial control into a single centralised location and you will recognise associated cost savings.
  5. Digitise your paper
    Your clients may not have an electronic invoicing and payments systems and so they will continue to return physical paperwork. As a result you will need to find a way of capturing this information and getting it into your own accounts system.

Using an electronic invoicing platform like Celtrino’s Smart Admin can help achieve each of these goals and thereby slash costs as a result. Interested? Get in touch to find out more!


Posted on February 22, 2012 in Accounts Payable, Business Process Automation, Cash Flow Management, e-Invoicing by
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Key People in the Supply Chain

 

The strength of any supply chain is the people involved. There are people on the assembly making goods, other people deliver those goods to customers, and yet more people complete the required administration at each part of the process. By their very presence it is obvious that everyone in the supply chain is vital. However as with any chain, the supply chain is only as strong as weakest link. In the supply chain the weakest link is almost invariably the people.

Often, breaks in the supply chain are accidental or caused by a lack of personal ownership, as with the ‘Dockets in Pockets’ syndrome. Employees regard their responsibilities in isolation, failing to recognise that their casual negligence can have much wider implications for the business as a whole.Chain

Other times supply chains grind to a halt because a key staff member is away on annual leave and the employees operating in their absence lack the required skills or training to complete the job accurately. Tasks are then either left undone or done incorrectly, increasing the time and effort required to rectify the situation. Delays in the supply chain cause delays in payment, reducing cash flow and negatively affecting future transactions.

Occasionally issues can be caused by a disgruntled employee using their knowledge to maliciously damage the chain and their employer’s business. Feeding deliberate misinformation, or obstructing certain key transactions and interactions can have a major impact on a company and the other businesses in their supply chain.

So although everyone is key to the supply chain, they also have the potential to introduce significant problems into the process too. The solution is to automate as many of these links as possible, reducing the chances of introducing operator error into the chain and keeping each transaction moving as smoothly as possible. Using the principles of Business Process Outsourcing and Supply Chain Management, many of these potential people-related problems can be avoided, increasing efficiencies, reducing costs and allowing employees to focus on doing their jobs, rather than on administration.

And although costs savings can be made within a single business, the benefits can be shared up and down the supply chain by implementing a suitable hosted system which can be accessed by them all. Celtrino’s Smart Admin platform provides an interface for businesses at every point in the supply chain through which they can automate many of their transactions.

People will always be key to the supply chain, but there is no harm in investing to reduce manual administration and human error.

 


Posted on November 23, 2011 in BPO, Business Process Outsourcing, Cash Flow Management, Smart Admin, Supply Chain, Supply Chain Management by
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Supply chain automation made easy

 

“(…) time taken to switch all your paper-based transactions to the platform is minimal. Supplier ‘on-boarding’, as it’s termed, just isn’t an issue.” – have a read of my interview with Malcolm Wheatley in the May edition of The Manufacturer.

Supply chain automation made easy

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Posted on October 27, 2011 in Celtrino Platform, Supply Chain Automation, Supply Chain Document Automation, Supply Chain Integration, Supply Chain Performance by
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Supply Chain Integration Introduction Part 5 – The Future

 

For businesses looking to implement their first supply chain integration systems, or those looking to improve that which they already have, the future of the methodology will remain of interest. The continued explosion of hosted systems (also known as Software as a Service – SaaS), has already begun to radically alter the supply chain integration landscape.

As discussed elsewhere throughout this short series of articles, supply chain integration is currently a job requiring extensive (expensive) expertise due to the complexities inherent in joining multiple computer systems. As with most technological advances, implementation of integrations should get inherently easier as on-site complexity is reduced. Suppliers will be faced with the choice of rolling out the exact same ERP system in each of their own businesses, or to outsource the EDI functions required to communicate between disparate systems to a third-party.The Future written on the white board

As cloud-based software and services continue to mature, the use of on-site systems becomes more expensive and effectively redundant. By outsourcing functions to the cloud such as invoicing and billing, businesses immediately benefit from a reduction in complexity and duplicated effort. An ideal Business Process Outsourcing (BPO) platform will take input from any ERP or accounting system, as Celtrino’s Smart Admin product does, and seamlessly convert and transfer the data to a receiving system. The onus for translation and EDI connectivity becomes the responsibility of the hosted service provider.

In such a scenario, the cloud service provider configures and maintains the EDI connectors for the systems of all of their service users, for the same subscription fee. The clients are then able to make savings on the costs of hiring EDI consultants every time a reconfiguration of the data interchange layout is required.

Business Process Outsourcing as part of a Supply Chain Integration is a hot topic and looks set to remain so for some time. As demand for BPO increases, service providers will be forced to further tune and improve their offerings. All this is great news for the customer and their customers in turn.

If you would like to know more about how Celtrino’s Smart Admin platform can be used to assist your business in Supply Chain Integration, please do not hesitate to contact us.

 
Supply Chain Integration Part 1

Supply Chain Integration Part 2

Supply Chain Integration Part 3

Supply Chain Integration Part 4

 


Posted on October 26, 2011 in B2B Platform in the Cloud, Business Process Outsourcing, Integrated Supply Chain Management Platform, Supply Chain Integration, Supply Chain Management, Supply Chain Performance by
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Upstream and Downstream – Navigating the Supply Chain

 

Upstream and Downstream in Kanuti River, Alaska.In terms of metaphors, the river is a perfect picture of a general supply chain. At the river’s source lies the producer of the raw materials. He loads his wares onto a boat and sails downstream until he reaches his buyer whereupon he offloads his goods, takes his payment and sails back upstream to his home. The buyer then assembles the raw materials into a product and ships them further downstream to his buyer. The goods travel downstream and a payment is returned upstream. This process continues down the length of the river until the finished goods are sold to the consumer.

In terms of the river, two things always happen. Goods travel downstream and money travels upstream. And so it is with the supply chain.

In the event that the supplier at the start of the river delivers directly to the end customer, the supply chain is a simple two stage process. Once there are multiple buyers and suppliers involved however, the supply chain becomes more complicated.

Also worthy of consideration is the fact that the cost of the intermediate goods rises with each stop. Value is added to the product at each intermediate stage and prices must also rise to cover mounting costs.

At this level, everything is still quite simple without any obvious room for efficiency savings. However, add an accounts department at each stop and the process immediately becomes more complex. The buyer has to send a purchase order to the supplier upstream before the goods can be sent downstream adding another journey to the supply chain. An invoice can be sent along with the goods, but payment and remittance advice will not be available immediately upon presentation, so that means another trip upstream to clear the account. Suddenly the supply chain is slowed considerably. Instead of a simple there-and-back trip, the are now three or four journeys required for one hop in the overall supply chain.

At this point, only the introduction of a system which links both up and downstream but which exists outside both can make the efficiency savings required to maximise profit and ensure value added is retained as profit. Adding an electronic supply chain integration platform such as Celtrino’s Smart Admin system obviates all the journeys back and forth with bits of paper between suppliers and buyers – almost like sending a carrier pigeon between both parties and saving the ship’s captain a number of trips.

Less trips, means lower costs. Tying seller and buyer together with an integrated supply chain management helps increase efficiency and everyone shares in the increased profits.


Posted on October 24, 2011 in B2B Platform in the Cloud, Electronic Remittance Advice, Integrated Supply Chain Management Platform, Supply Chain Integration, Supply Chain Management, Supply Chain Performance, Supply Chain Upstream and Downstream by
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Moving financial transactions to the cloud can win you big contracts

 

Read how we helped Kooky Dough realise the supply chain efficiencies that helped them move to the next level as a business.

Moving Financial transactions to the cloud can win you big contracts

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Posted on October 18, 2011 in B2B Platform in the Cloud, Celtrino Platform, e-Invoicing, eBilling, EDI, Outsourced EDI, Supply Chain Document Automation by
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Supply Chain Integration Part 3 – How?

 

Our previous article discussed the benefits of supply chain integration, but we also mentioned a number of potential hurdles to success. This time we will look at how a group of businesses should go about completing the process.Supply Chain Integration Part 3 - How?

New systems cost a lot

An unfortunate truism – new computer systems and processes do indeed cost. There are both time and financial implications to changing the way a business implements changes to their processes and it is therefore prudent to consider such costs before making any fundamental alterations. During that review process however, you must also consider the return on investment; in the case of supply chain integration, ROI should be significantly greater than the outlay for all members of the chain.

Inter-company politics scupper integration

The way in which different businesses work often conflict with those who are trying to partner with them causing frustration and misunderstanding. The integration of computer systems  can breed suspicion and lead to projects failing early on. It is therefore essential that every member of the supply chain is fully supportive of the integration efforts and that there is a mutual understanding that the implementation is designed to benefit everyone. Keep stakeholders focused by reiterating the bottom-line benefits on a regular basis.

Hosted systems can solve both dilemmas

Using a hosted system, such as Celtrino’s Smart Admin however will help to mitigate both of these problems. Using business process outsourcing, companies need only pay a subscription to use the service – it is up to the service provider to make the investments in hardware and software to make the service a reality. By using a hosted system, all members of the supply chain pay towards the service and only ever pay for what they actually use. Such an approach immediately reduces the likelihood of overspend during the implementation phase.

The use of an external, third-party hosted system also helps to make reduce the potential friction caused by integrating sensitive business systems by removing responsibility for it’s management from any single member of the supply chain. Smart Admin is designed to foster transparency between members of it’s P2P business portals and as a result, helps to increase transparency throughout each transaction. Transparency breeds trust so that in the end, everyone wins.

 

Supply Chain Integration Part 1

Supply Chain Integration Part 2

Supply Chain Integration Part 4

Supply Chain Integration Part 5

 


Posted on October 12, 2011 in Celtrino Platform, Cloud Computing, Smart Admin, Supply Chain Document Automation, Supply Chain Integration by
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Drive down supply chain management costs

 

Take a look at our data sheet that outlines how your business can drive down supply chain management costs simply.

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Posted on October 11, 2011 in B2B Platform in the Cloud, Celtrino Platform, Cloud Computing, SaaS, Supply Chain Document Automation, Supply Chain Integration by
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True e-Invoicing

 

Much has been made of Denmark’s transition to mandatory electronic invoicing in 2005 which requires any business who trades with the government to submit their invoices in an electronic format. The success of the system has seen the Danish government making efficiency savings of between €120 and €150 million each year since 2005.

e-Invoicing: Netherlands versus DenmarkSuch headline figures have seen many other national governments looking to implement similar systems with a view to reaping comparable cost savings. The Dutch government have been the latest to make a headline-grabbing statement about e-invoicing, but the technologies they have implemented fall outside what is typically thought of as e-invoicing.

So what is e-Invoicing?

At its most basic level and as the name implies, e-Invoicing is the presentation of an invoice for products or services electronically. e-Procurement platforms such as that operated by the Danish Government, allow suppliers to generate electronic payment demands which are then submitted directly into the Government accounts system.

What isn’t e-Invoicing?

Many people, including the Dutch Government think submission of an electronic version of a document is the same as an e-Invoice. Under this definition, simply emailing a Word document or a PDF counts as an e-invoice because the payment demand is transmitted electronically.

Why does it matter?

Although there are similarities between the Danish and Dutch electronic invoicing systems, the Danes have a clear advantage. By having suppliers submit electronic invoices directly into their accounts system, the Danish Government recognise cost savings immediately through reduced time and effort manually entering invoice details themselves. As soon as the eInvoice is received it is ready for authorisation and payment by the Treasury.

The Dutch Government also receive invoices immediately as documents are attached to emails allowing for savings in postage at the very least. However these invoices must then be manually re-entered into the accounts system, requiring additional staff and duplication of effort for both supplier and customer. As a result, any cost savings recognised by the Dutch Government “e-Invoicing” system will be well below those of Denmark.

The use of a true e-Invoicing system generates substantial cost savings for both buyer and supplier. If in doubt as to whether a suggested system will generate the savings you hope for, try speaking to a specialist provider such as Celtrino.


Posted on September 28, 2011 in Accounts Payable, B2B Platform in the Cloud, Celtrino Platform, e-Invoicing, eProcurement by
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