Networked Purchase-to-Pay is an evolutionary leap in invoice processing
Monday, 25 May 2015
Do you remember 2004? Don't worry if you don't; most financial organizations don’t think back except to determine how the net gearing has developed recently. However, 2004 was a year worth remembering. It was the year Basware Invoice Processing was launched.
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And thanks to Basware Invoice Processing, numerous financial deportments had a sudden surge in efficiency. This efficiency was enabled by the automatic matching of recurring invoices and purchase orders, and by the first introductions of Purchase-to Pay process. Only back then, it was known as "Need-to-Payment".
Today, over ten years later, many customers – some who have been with us since 2004 - are on the lookout for the next step. I believe that Networked Purchase to Pay is this next step.
Current solutions are superb - for solving 10 year old problems
Networked Purchase-to-Pay enables financial organizations to collaborate with their suppliers, and to fulfill both orders and obligations so efficiently that it creates a financial advantage and an opportunity for working capital gains for both parties in the relationship.
Naturally, this development requires some changes to the underlying Accounts Payable and Procurement practices at the buying end. As accounts payable professionals run their CFOs and CIOs in break rooms, a popular topic of conversation is likely to be the transition to cloud-based financial solutions. Many Finance professionals are contemplating whether they should fix something that isn't broke – ie. evolve to networked purchase-to-pay. My view is that they should. Why? Because the solutions that they currently have in place – those that enabled great leaps in efficiency 10 years ago – are no longer enough. They cannot compete with the present day value-streams-as-a-service offering.
Your CFO will love the agility that Networked Purchase to Pay brings to financial operations
Remember the last time your board decided to acquire a business to support corporate growth? Or when your company decided to switch their focus to a different set of countries? With all growth opportunities come the hassles of legal compliance, of making services accessible and available to new employees or markets, and of getting new suppliers onboard. Whether you are investing or divesting, you will respectively be left with too little or too much capacity for operations.
Once you have moved to a cloud solution, you can talk to the Service Management of your service provider about any upcoming changes - whether they are related to the scale or geography of your operations. You can also decide - at any time - to extend your Accounts Payable process to include Procurement, hence turning your Accounts Payable solution into a full Purchase to Pay system. These, and any other changes, will be up to you. They will be easy to implement with a cloud solution which quickly and easily adapts to increases or decreases in your needs. Costs, too, adjust quickly: pay only for what you need.
Your IT will love the customer focus that Networked Purchase to Pay enables
For years, IT has dreamed of spending less time with noise-generating hot-on-the-surface hardware in the computer rooms, and more time focusing on business infrastructure and processes. IT professionals, typically, have a very good grasp of the business processes. Unfortunately, focus on the technical service delivery keep them at a distance from the customers.
Going to cloud will instantly reward your CIO and IT Manager. Not only they will be able to retire their age-old hardware, they will be forever free of upgrades and maintenance. Cloud-based solutions can typically deliver better reliability and availability standards at a lower price level. And the final issue – security concerns – is quickly disappearing. In fact, leading cloud researchers claim that cloud will soon be more secure than on-premise, thanks to disciplined security and maintenance routines by cloud service providers who naturally know their own solutions inside and out, and have economies of scale to make their service more secure for multiple customers at one go.
Your users will love the freedom and user experience of Networked Purchase to Pay
In Networked Purchase to Pay, emails and phone calls are no longer a means to submit inquiries regarding services and products. Instead, the entire offering is available online through catalogs from preferred suppliers in the Basware network.
As soon as a requisition is created and approved, the order is electronically relayed to the supplier for fulfillment, only to be received as an automatically matched invoice or invoice line later. Because the data quality in the Basware Network is so high, and information travels so quickly, buyer organizations can process invoices for payment in a matter of minutes. If any invoice handling is necessary at all, the user experience offered by the Basware SaaS solution is intuitive, familiar and accessible from any tablet, smartphone or PC your users are using.
Networked P2P puts Accounts Payable back on the CFO’s agenda - with working capital gains
What's more, Networked Purchase to Pay will bring Accounts Payable back on the CFO’s agenda. By moving to Networked Purchase to Pay, Accounts Payable can choose to fulfill their corporate social responsibilities: by paying suppliers sooner while enabling Accounts Payable to keep their own Days Payable Outstanding intact (i.e. pay on time).
Alternatively, Accounts Payable can agree to pay suppliers early with negotiated early payment discount. Whether you are interested in creating a balanced payment network or injecting more cash to the bottom line and improve your working capital, Networked Purchase to Pay gives you both. That opportunity to choose fuels CFOs.
Networked Purchase to Pay has been available to our customers for years, and our numerous reference customers are a testimony to the new era of cloud solutions. Basware solutions and services are constantly evolving and demonstrating new ways to make commerce flow. Our sales teams are constantly on the lookout to improve the financial performance of our customers. Contact us, and our best people will be in touch.