Procurement technology is often divided into one of two categories. It is either source-to-contract and procure-to-pay. Both technologies have become the default for warehouse companies and logistic managers to procure payment for their goods and services.
In case you are unfamiliar with what procure-to-pay technology is, it’s a term used by software-as-a-service professionals and companies to describe a specific function of the payment procurement process. A rock-solid procure-to-pay system empowers your accounts payable department by integrating with other systems throughout the organisation, including sales and human resources.
In this article, we’re going to examine the future of procure-to-pay technologies. We consider vital drivers and techniques that include purchase order processing with workflows, full-on accounts payable automated processes and approvals, and optical character recognition capabilities.
Within the context of entering site enterprise resource planning systems, the timing cost-savings benefits of investing in the future of these technologies to succeed your legacy systems are critical to the success of your warehouses future. When implementing a procure-to-pay system for your own organisation, you may want to consider some essential features of elements that come with a comprehensive solution. These elements include native mobility, built-in social collaboration, creative features, and intuitive intelligence.
We can begin by taking a look at the future of purchase processing with workflows and how it can stand to benefit your organisation:
Purchase Order Processing With Workflows
While your enterprise resource planning process may not necessarily think of purchase orders, you might want to consider the future of this form of technology. Typically back-office managers or dealing with purchase volume that isn’t high enough to facilitate the need for workflow automation in terms of the purchase order process. However, companies that forgo these opportunities may inadvertently be increasing waste and reducing efficiencies. Your enterprise planning resource systems and ERP integrations can come together 2 make these types of tasks much more cost and time-efficient to manage. These integrations not only benefit you as a manager, but they also help your staff and your customers as well.
Full-On Accounts Payable Automated Processes and Approvals.
Also on the forefront of enterprise resource planning, we’re starting to see a full-on accounts payable automated process along with an approval system take the leading edge. The era of digital transformation between all business segments and it can be a difficult transition. However, By making the investment now, organisations will feel fare better in the future when it comes to handling their accounts payable process.
Financial/accounting systems will continue to develop and offer ERP integration that works with your enterprise resource planning systems. It doesn’t make sense to have your crucial decision makers performing tasks and functions that business automation and artificial intelligence, or AI, can accomplish. Tech giants, like Google and Microsoft, are placing particular emphasis on increasing accuracy efficiency while simultaneously reducing oversight. Although it does seem like automating accounts payable would make you less aware of your daily operations, the opposite is true in fact. With today’s robust dashboard insights and analytics available, you actually can learn more about your organisation through the accounts payable process.
Optical Character Recognition (OCR) Capabilities
If you’ve been let down by optical character recognition (OCR), you aren’t alone. The technology was designed 2 automate the process of “reading” text across Multiple formats.
For example, most people have used OCR technology when scanning in a paper document to the system. In the past, we would have administrative assistance hand type text in the document text. OCR was meant to automate that process. Unfortunately, it didn’t always work as anticipated and sometimes created more work than necessary. This situation resulted in business people across several industries writing it off and abandoning the technology as not useful.
This assertion couldn’t be any further away from the truth between now and into the foreseeable future. Today’s programs are capable of performing more than just text searches and edits. We’re starting to see additional forms of automation in this process that include accuracy and access. Not only are the technologies performing better and reading a text more accurately than in the past, but SaaS companies are beginning to incorporate elements of tagging, categorisation, and automatic file storage functionalities that did not exist in the past.
As you can see OCR technology is becoming more useful to today’s agile warehouse management teams
Automation Across the Ecosystem
Logistic and warehouse management executives are beginning to see just the tip of the iceberg when it comes to robotics and digitisation concerning procure to pay technology. This is an area that is going to have the most significant impact on the entire process for the foreseeable decade. Even though the adoption of automated enterprise planning systems that include procuring to pay automation is low, we’re going to see a massive increase along the next few years. Companies that do not adopt the technologies now may find themselves swimming in the aftermath of deprecated legacy systems that no longer serve the organisation. And it’s going to be a mad scramble to get them updated.
Even on the accounts payable side, vendors and customers still pay invoices via US Postal service. Most companies handle this form of payment by hiring accounts payable clerks to manually enter data int their system. Imagine how it would look if instead of receiving paper checks that involve manual processing If your people could scan in the analog currency while your systems, using OCR technology, automatically allocate and balance your ledger under your existing financial/accounting systems. Just for a moment, try to consider how much time and money you would save if you could automate these tasks. It’s for this reason that so many of the big players are taking a second look at how they process payments within their internal network.
Avoid making the mistake that enterprise resource planning systems are still in their infancy stage. That is a fallacy and assertion that will make companies fighting for their fair share of market struggle even further. Improve your warehouse management systems by examining the options available in today’s market period