Shared services centres for efficiency gains
Many large organisations have moved, or are planning to move, critical procurement and finance functions to a ‘shared services’ model. Centralising these functions provides economies of scale and greater efficiencies. Common shared services activities may include:
- Order processing (inbound and outbound)
- Invoice processing (payables and receivables)
- Payment processing (payable and receivable)
Semi-automation means semi-efficiency
The consolidation of transaction volumes into a shared service centre delivers improved Return on Investment (ROI) possibilities for business automation and digitisation technologies. In general, the greater the level of automation and process support, the greater the efficiency gains.
Full automation, however, remains elusive due to the varying capabilities of an organisation’s external customers and suppliers. For example, smaller vendors may be unable to receive or send documents electronically. Technologies that rely on business partners’ adoption will always have limited effectiveness, as will those that do not support the entire process. Full automation and digitisation between trading partners is the ultimate goal and this is now readily achievable.
“Technologies that rely on business partners’ adoption will always have limited effectiveness, as will those that do not support the entire process.”
Pagero delivers 100% invoice and order automation
Moving to 100% digital flows requires technologies that support both full automation and semi-automation. This allows trading partners to be accommodated with little or no disruption to their current business processes, whilst being migrated to full end-to-end digital trade over time.
An example would be where smaller suppliers and customers continue to send orders and invoices by email and these are 100% digitized (on a row level) and delivered into your systems, in addition to those documents already being delivered through e-order or e-invoice.
Pagero is able to achieve 100% invoice and order digital automation (inbound and outbound):
- 100% of the orders and invoices issued are sourced digitally from ERP / Procurement systems and automatically delivered to recipients, in methods suiting their capabilities.
- 100% of inbound documents (orders / invoices) are received digitally and automatically delivered into the ERP system, with row and header rather than only header level data.
- Automated validations are implemented to ensure inbound document errors are picked up before transmission (e.g. invoice check against order number or goods received).
- Automated data enrichment ensure orders and invoices issued are automatically adjusted to meet any particular demands of recipients.
- All inbound and outbound documents are traceable by both issuer and recipient to the extent that digitisation is supported.
How is 100% order and invoice automation possible?
Previously 100% automation was unachievable, especially when large numbers of trading partners are distributed locally and globally. Pagero however, has redefined the way in which business partners can trade. What is more, the investment and deployment time is low in comparison to older style technologies that would deliver a fraction of the benefits.
Inbound Invoicing and Ordering – Documents are delivered digitally into target systems, without manual intervention. This is achieved by sourcing the document digitally from trading partners, via:
- Digital receipt (in the issuers data format)
- Web portal or virtual printer (invoices only)
- Email to Pagero Data Capture (where we combine OCR scanning and human proofing to ensure 100% accuracy).
Outbound Invoicing and Ordering – Documents are digitally collected from your systems (in your data format) and processed through Pagero Online. Pagero Online then delivers these electronically to recipient customers and suppliers, via:
- Digital delivery (in the recipient’s required data format)
- Web Portal delivery
“Full automation and digitisation between trading partners is the ultimate goal and this is now readily achievable.”
Automation solutions, such as Pagero Online and Pagero Data Capture enable high levels of efficiencies and automation at shared service centres. It is now genuinely possible to deliver 100% invoice and order automation quickly and without the high levels of expenditure, previously required to achieve much lower levels of automation.
Want to know about how Pagero can help you achieve 100% process automation? Please do not hesitate to contact Pagero or the author directly for further discussions!