Improving Spend Management

Why is it the case that so many companies still haven’t started receiving invoices electronically, and are still doing spot checks manually to verify if they’ve been correctly invoiced?

I’m reading about digitalization everywhere. How digital processing is taking over just about every process there is. We see banks that deliver their services and customer interaction via the digital arena, and we see how e-commerce is growing every year by converting manual processing to digital right from the start – with digital orders, digital invoices, digital payments, and customers can track their deliveries on the net with status updates about where their packages are.

But why are there so many traditional companies that still insist on sending and receiving invoices in a paper or PDF format? And why haven’t they digitalized the process of verifying that invoices are correct, that the invoice is based on the right terms and conditions, and that they specify the agreed prices and products? There is an incredible potential in streamlining spend management for indirect material.

The savings come about partly from eliminating the physical paper flow, and partly by minimizing manual processing and replacing it with system support for automatic verification and control. In this way you can benefit immensely from analyzing your spend and making better and more rational decisions on costs, choice of suppliers and optimal product mix.

In this new year of 2017 I hope to see many more companies realize the dramatic improvements and cost reductions that can be generated by investing in modern software and digitalizing the entire process from procurement to payment.

Lena Ridström