“(…) 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.
Read how automation of delivery information (in form of electronic despatch advices or advance shipping notices) can optimise your supply chain performance.
As with any new concept, eProcurement has brought with it a number of new terms and phrases to describe certain functions within the process. One of the strangest phrases entering into the vocabulary of procurement and accounting professions is the “PO Flip”.
At the most basic level, a PO Flip is the conversion of a Purchase Order into an Invoice using the tools available in eProcurement or Electronic Invoice Presentment and Payment (EIPP) platforms, such as Celtrino’s own Smart Admin system. An eProcurement platform allows customers to submit their purchase orders electronically directly into the supplier’s accounting system. Using the automated tools available, the supplier can then automatically “flip” the purchase order into an electronic invoice for immediate return to the customer.
PO Flips have become massively popular with suppliers to the public sector as local councils and even central government carry out more procurement via online platforms which provide the function as standard. Both supplier and buyer then benefit from the reduced time spent on administration of the purchase.
Upon receipt of an electronic invoice (also known as an eInvoice), the buyer can approve the purchase and authorise a BACS payment at the click of a mouse button. By automating the purchasing process, buyers and suppliers reduce the margin for human error and unforeseen delays associated with posting invoices, cheques and remittance advice.
Reduction of time expenditure in accounts administration has the added benefit of freeing up finance staff to focus on other areas of their roles. If the resource requirements continue to be reduced through further implementation of eProcurement and the outsourcing of associated systems, significant costs savings can also be recognised through a reduction in headcount.
The PO Flip is but one of many time-saving devices available to users of outsourced EIPP gateways such as Smart Admin from Celtrino. To find out more how your business could benefit from outsourced EIPP, please visit www.celtrino.ie
As with many technological advances, governments frequently lag behind their private sector citizens. However following a 3 month consultation period, the European Commission has reported “considerable support” for the institution of a mandatory standardised EU-wide e-procurement solution.
In a statement outlining the main findings of the consultation, the EC said: “There is broad support for EU-level action, including the use of legislation, to facilitate the use of standardised e-procurement solutions. A small majority of respondents support the imposition of EU-level requirements to use e-procurement.”
Echoing the concerns of private sector implementers of procure-to-pay solutions, 60% of respondents commented that “overcoming inertia and fear” would be the largest barriers to the success of e-procurement deployments, particularly in cross-border situations. Concerns were also raised about the potential for a lack of standards or onerous technical requirements.
The EC is now calling on e-procurement and B2B supply chain management specialists to join an expert group with a view to creating a blueprint for common solutions. The EC is also set to monitor the use of e-purchasing within its member states to observe and promote best practices.
One of the lessons the public sector has learned in the arena of supply chain automation and e-procurement is that implementations of such systems need be neither complex nor onerous. Outsourcing of procurement processes to specialist providers has proven to be both cost effective and extremely efficient, removing much of the administrative burden associated with e-procurement. Using cloud-based Electronic Data Interchange (EDI) systems such as Celtrino’s Smart Admin platform, businesses can take advantage of sophisticated data format conversions to deliver Electronic Invoice Presentment and Payment (EIPP) information directly into a supplier’s accounting system.
The use of outsourced EDI Managed Services have proven to be of great benefit to private sector businesses by transferring the day to day responsibilities for managing complex data sets and transformations to the service providers, generating cost savings as a direct result. It is therefore feasible for governments to reap similar benefits through use of the same platforms and processes.
The below describes an original way to improve your organisation’s cash flow by implementing electronic remittance advice service.
As always, if you have any questions, feel free to drop us an comment, tweet or e-mail and we’ll be sure to get back to you.
A key moment of truth in any trading relationship is the demand for payment for goods/services rendered. It is precisely at this juncture that the specifics of the transaction and the quality of the underlying trading relationship comes sharply into focus.
The organisational structure of many companies means that Accounts Payable department is charged with the pay/no pay decision. Often, however, the facts speak for themselves. The orderly payment of a purchase invoice is delayed by blips elsewhere in the procure-to-pay cycle. The accounts payable department end up unfairly shouldering the responsibility for this and as a consequence are forced to develop a thicker skin than might otherwise be necessary in a well-run company, in turn raising the prospect of inter-departmental problems.
Of course, at times, the supplier can also be at fault either unilaterally or almost seemingly in conspiracy with his customer contacts – but this is a consideration for another day. Some decision makers in buyer organisations can at times be accused of forcing a discipline on its own staff via its supplier base (instructing the supplier in no uncertain language that an order from a buyer representative must not be accepted without a valid PO number – is this good trading relationship practice or a circuitous route of exerting discipline on wayward colleagues?).
Buyer procurement process rigidity is a so called “best practice” employed by some organisations where the process can seemingly become the key KPI. Perhaps given the advances in connectivity of IT systems in conjunction and the partnership model, such an approach may be worth rethinking. Consider the potential improvements in a working relationship if transparency is introduced into the supply chain?
Enter automated accounts payable solutions. Using Celtrino’s end-to-end supply chain automation systems, it is possible to monitor the entire process and immediately identify where the cause of a delayed payment is, and with whom the fault lies. Using the built-in transparent reporting facilities of Celtrino, buyers and sellers can quickly and easily identify and resolve payment problems, reducing friction between parties and preventing accounts payable taking the blame once more.
Friday’s slideshare is brought to you in association with Beaumex. Read how we helped through Continuous Replenishment, our automated stock management service transform their supply chain.
Celtrino to invest USD 1 million to develop supply chain management services on Azure platform
Irish e-invoicing services provider Celtrino is planning to invest USD 1 million to develop supply chain management services on the Azure platform.
The company expects the investment to enable Celtrino to experience global growth.
Celtrino specializes in supply chain automation e-services, such as accounts payable automation, e-invoicing, electronic order processing, EDI or eProcurement.
Celtrino counts a customer base of around 700 companies of all sizes, from traders to multinationals.
Source: The Paypers