Tag Archive - Supply Chain Document Automation

Document Tourism

What?

Document Tourism is a phrase we use to describe the process whereby a particularly important piece of paperwork “goes round the houses” upon receipt because it lacks certain critical information. The best way to explain the concept is with an example:

A Purchase Order arrives by post at the Supplier’s office. The document is directed to the Accounts Payable department via internal mail ready for processing. However as the clerk begins to enter the Purchase Order onto the in-house accounts system, he notes that the requisite purchase order is missing. Document Tourism

At this point the clerk must contact the account manager for the client and pass the incomplete purchase order back to them for follow-up. The account manager will almost certainly have to send a copy of the faulty document back to their contact at the purchasing company (physically or electronically) so that an amended version can be sent back. Depending on the complexity of the purchasing and payment procedures in place at the buying or selling company, there may well be several more steps involved.

So?

Just like a tourist on a hop-on hop-off bus service, the document travels around several locations, spending varying amounts of time in each location as it makes its way back up the supply chain. Just like a traveller, every stop takes time and therefore costs money (although purchase orders don’t have to buy a coffee at every stop).

Each step in obtaining the missing data results in a delay, and if time is money (which it is), every stop on the trip costs the Supplier.

Touchless to the rescue

The way to resolve similar problems is to implement a data verification gateway, preventing incomplete forms and documents from entering the supplier’s system. Known as “Touchless Systems”, presentation of purchase orders are presented electronically, sent directly from the buyer’s accounts system to the supplier’s electronically.

Taking the example of the missing purchase order number, the document leaves the buyer’s accounts department and is checked for data integrity as it reaches the supplier. If anything is found to be incomplete, the purchase order is immediately rejected and the buyer is notified. Both buyer and supplier benefit from automated processing in this way because less time is wasted by physically passing documents for manual correction.

Touchless processing immediately cuts out the problem of document tourism as there is only ever one stage in passing information back to a buyer in the event of an incomplete request. The savings of time, effort and money will grow exponentially as fewer and fewer documents require manual correction.

For more about touchless systems and how Smart Admin could help prevent document tourism within your organisation, please get in contact.


Posted on November 18, 2011 in Accounts Payable, Business Process Automation, Order Management Processing, Purchase Order Capture Automation, Supply Chain Management by
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The benefits of an integrated supply chain management platform

B2B portals enable companies to efficiently integrate resources across a pipeline from suppliers to final customers by reducing the back and forth communication inefficiency associated with invoicing, payments and stock movements.  As goods travel up and down the supply chain, paperwork is sent back in its place; integrating computer systems, or using a platform that interfaces between each system, reduces the time spent on such data transactions.

The use of B2B portals extends beyond processing invoices and payments however. Tighter integration of stock management systems enables interchange of additional data, allowing each link of the chain to offer their customers an enhanced service.

Taking the example of a river again, the supplier at the start of the chain may experience an increased cost for one of their raw materials. In a traditional scenario, the supplier needs to get the message to each of their customers downstream. The message can be sent to customers early, or when they place their order, which can delay the purchase. Either way, pricing updates will cause a lag for each member of the chain. The same situation applies if the cost of raw materials drops.

Using an integrated supply chain management platform, any supplier in the chain can update their prices and the changes will be immediately reflected in the purchasing systems of their customers. The delay in transmitting pricing changes upstream and downstream is negated.

By allowing for immediate pricing updates to be automatically shared between systems, each supplier and buyer will be able to see at a glance what the up-to-the-minute price of any component is. This will allow them to provide accurate prices and quotes to their own supplier. And by making pricing transparent between supply chain partners, a high degree of trust can be built into the chain.

To find out more about how a B2B Portal could benefit your business and those of your supply chain partners, please give us a call.

 


Posted on October 14, 2011 in B2B Platform in the Cloud, Business Process Automation, Supply Chain Document Automation, Supply Chain Integration 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.

View more documents from Celtrino


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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Ireland’s Public Sector Could Save Millions Through Automation

Here is a press release from last year that still rings true today… what are Ireland and the rest of Europe waiting for? Denmark is leading the way!


Posted on October 7, 2011 in Supply Chain, Supply Chain Document Automation, Supply Chain Integration by
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Suppliers dilemma – Keep up or shut up shop (e-Invoicing)

Want to know how you can improve your customers bottom line through e-Invoicing? Read on…


Posted on September 22, 2011 in e-Invoicing, eBilling, EDI, EIPP, Smart Admin by
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Outsourced EDI: Pat the Baker case study

Outsourced EDI: Pat the Baker case study” - a Wednesday morning case study for you. A great insight into the business transformation undertaken in Pat the Baker, Ireland’s finest Bakery, in conjunction with Celtrino, a pioneer in the provision of outsourced managed EDI services.


Posted on September 21, 2011 in EDI, Outsourced EDI, SaaS, Supply Chain Document Automation by
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Time is Money

“Remember ”, remarked Benjamin Franklin once, “time is money”. This legendary observation first entered the public consciousness back in 1748, yet even now, more than 250 years later, the sentiment remains true. Anything which costs a business time, be it in product development, production lifecycles or general administration, has an associated financial cost. Therefore anything that reduces time spent, also reduces costs.Word money on the dices

In recent times, computerisation of many processes has brought significant time-savings. Once, invoices, payments, statements and remittance advice had to be manually written and posted, before carrying out a similarly onerous reconciliation process. Over time, computers replaced manual ledger books and calculations, but still inter-company communication relied on the postal service. Fast forward a few more years and the advent of the internet allowed for certain documents to be sent electronically where appropriate.

Yet despite these advances, an accounts clerk still needed to manually generate copies of the information for the supplier before another clerk at the buying company had to copy the information back into their own accounts system. Both clerks pinged invoices, statements and remittance advice notes to each other, effectively duplicating the work at both ends, costing both supplier and buyer time, and therefore money.

Enter Celtrino’s Smart Admin eSolutions. Leveraging the full power of electronic data interchange (EDI), Smart Admin allows businesses to share accounts information directly from system to system seamlessly. Smart Admin features Electronic Invoice Presentment and Payment (EIPP) functionality allowing suppliers to conduct their full billing cycle automatically from their in-house accounts system via the Celtrino platform. The smart format conversion tools allow data interchange to take place regardless of which systems are attempting to communicate.

Celtrino’s Smart Admin system covers the full electronic supply chain reducing the administrative burden at every point of the process. Reduced administration means reduced time expenditure which, as Franklin stated, means cost savings.


Posted on September 19, 2011 in e-Invoicing, Electronic Billing, Electronic Invoice Presentment & Payment, Smart Admin by
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Managing your stock using Automated Services – Continuous Replenishment

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.

 


Posted on August 22, 2011 in Continuous Replenishment, Smart Admin, Supply Chain Document Automation by
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Flush out your ERP system – Price and Product alignment

Here is another one of our Slideshare documents. It’s about flushing out your ERP. Hopefully you find it useful!

 


Posted on August 22, 2011 in ERP, Price and Product Alignment, Smart Admin, Supply Chain Document Automation by
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