According to Gartner, supply chain management IT spending is up 11 percent in 2017, topping $15 billion for the year. And according to projections, this upward trend is likely to continue.
But the question many companies are left asking? Where’s the value?
Managing a supply chain is still complex, and highly inefficient. For instance, it can take 14.6 days and $16.91 to process a single supplier invoice.
One investment, however, can make these numbers much more palatable.
Accounts Payable automation, which takes manual data entry out of the purchasing process, allows companies to process invoices in 2.9 days, at a cost of $3.47.
There’s the value. It’s a 75 percent reduction in invoice processing costs, and a 80 percent reduction in cycle time. Those results can speak for themselves.
Other advantages of AP automation:
- The secure and accurate collection of all transactional information, carefully organized and easy to search
- Automatic import into your financial ERP
- Increased visibility into legacy Accounts Payable processes
- Less risk of late payment fees (and more early payment discounts)
- Streamlined reporting for better decision-making
- The ability to re-allocate staff resources to more important financial initiatives
- A more complete, cost-efficient back-office operations strategy
Interested in achieving these same cost savings in your own business? Click here to download IntelliChief’s AP automation guide. Or, contact us today to see how process optimization can improve your supply chain.