As the procurement world looks for more savings and efficiency, businesses are turning to ERP integration to deliver process improvements. For companies seeking a 360’ view of their supply chain, adopting a purchase to pay process (P2P) brings clear benefits. Connecting procurement through to payment of goods ensures greater effectiveness of the entire supply chain. So what needs to change?
Manual purchase order (PO) process
For many businesses, a typical PO journey is manual and involves multiple stages;
● Manual order transmission via email attachment
● Manual PO entry by the supplier
● Manual PO acknowledgement
● Manual invoice submission via post or email attachment
● Manual match to Purchase Order and approval for payment.
The above journey can be slow, and lead to delays in product or service supply, PO value mismatch, and late payment of invoices.
Automated integrated process
Here, ERP integration is a proven and cost effective alternative to a manual Purchase Order (PO) process. This provides your business with a more automated and efficient order management solution. Top line benefits include;
The clear winner and most substantial benefit of integration is time. Your business productivity will see a dramatic decrease in manual data entry, order process time and order fulfilment. Staff time is saved as once automated, touch points are minimal.
A high level of process efficiency is achieved through ERP integration. As systems are automated there is reduced requirement for manual data entry. This improves accuracy, reducing the need for manual data entry or the opportunity for errors or duplications.
PO accuracy is maintained as no or little manual intervention is required.
Automation, coupled with a high level of accuracy significantly reduces process or soft costs. For example, PO receipt acknowledgement is automatic, with an automated invoice delivery and approval process. These contribute to a swifter, more efficient process.
360’ supply chain view
By integrating your ERP system with an online ordering platform, you gain a holistic view of your supply chain. Once set-up, systems communicate with each other in a seamless manner. As your ERP punches out to a portal, staff can access an efficient and fluid system that provides up-to-date catalogue and pricing information; maintaining the supply chain process without delays.
How it works
OfficeTeam works with clients to deliver a system-to-system integration which benefits both parties, and ensures efficiencies and savings are achieved. It starts by defining the range of products or agreed catalogue that staff will have access to.
• Members of staff who will need to create Purchase Orders will need to access a range or agreed catalogue of products. The quantity of products within the agreed catalogue varies, but could typically range from 10 to over 8,000 products.
• The agreed catalogue will ideally be managed and hosted by OfficeTeam. Alternatively, a catalogue file can be provided for you to host on your ERP System.
• Your ERP system will access the agreed catalogue, either by hosting it internally, or by connecting (punching out) to a secure OfficeTeam portal.
The order process then begins; with staff logging into the relevant area of your ERP system. View products by accessing the agreed catalogue, and add selected products to the basket. The requisition process is then started within the ERP system. You can view more details on this here.
Typically, once the project scope is agreed, timescales range from 2–6 weeks for an integration project to go-live.
The benefits of ERP integration are clear; achievable after a clearly road-mapped implementation phase. Companies that integrate online order platforms with back-office ERP software can enjoy substantial cost savings, streamlined administration and shorter order/invoice cycles. Back-office ERP integration also enables a better user experience for stakeholders.
So, if you’re looking for greater process efficiency and accuracy, consider integrating your enterprise resource planning (ERP) and order management systems. Doing so will help to optimise operations and enhance efficiency.