Who is not longing for faster lead times for order and
invoice verification?
To optimize business processes in the p2p process, it is not
enough from our point of view to consider the business processes per
department. Only when we look at patterns and processes across departments
optimization potential can be discovered and exploited.
Often the p2p process begins with a requirement notification
and the associated order request. Depending on how the order approval process
was structured in the company, there is the option of ordering, for example, €
500 below budget limits without having to obtain prior approval for the order.
These orders can trigger subsequent work.
The moment an order request is stored in the system, lead
times can be recorded. The payment release of an invoice is usually the last
process step before audit-proof archiving. Various departments are involved in
the process chain between order request and payment release. In addition, suppliers
and service providers are also involved in the procurement process.
In the end, the multitude of processes run into the incoming
invoice check. In order to effectively solve process brakes, we use pi.a
analytics to take a holistic view of company processes, including the purchase
process.
A nice side effect is a clear supplier evaluation based on
the order volume in relation to the total order amount. This is how you get
detailed information about the ordering process at a glance:
- What type of orders are you dealing with (limit, service, material, etc.)?
- What are the average lead times of the order process per supplier?
- How long does the entire process take from order to payment approval?
- How often do price changes for the order take place per supplier?
Answers to these and similar questions will help you to
effectively discover and solve process blockers so that you can quickly get
going again. Optimized processes and lead times not only save costs, but they
also protect nerves!
Comments
Post a Comment