For years Finance Directors have asked their procurement teams to do one thing – cut cost. But after spending the past few years with an acute focus on cost reduction, many FD’s are now asking… “where do we go from here?”. After all, costs can only be cut so far. And, once your procurement people have renegotiated every contract with every supplier for the best possible deal, what’s left to cut?
Recent surveys have shown that FD’s today are a little less preoccupied with cost cutting measures and a little more focussed on growth. A recent article from Financial Director magazine suggests that growing optimism in the economy is spurring FD’s from big business to pursue more expansionary strategies. But whilst cutting costs may no longer be right at the top of an FD’s to-do list, a degree of uncertainty over the economy both at home, and in the wider Eurozone means that FD’s still want – and need – to keep a tight rein on expenditure.
With such an intense focus during the past few years on cost-cutting it can be difficult to see how much more cost an FD can cut. After all, if you cut too much, you risk negatively impacting top line growth. But there are still substantial savings that FD’s can gain by asking their Procurement Departments to explore how they can re-engineer the actual process of procurement itself to save money.
Below are 5 ways that Invenio customers have done exactly that, by deploying Invenio’s Invenio’s P2P Solutions solution for SAP:
1. Self-Service Supplier Portal.
Suppliers are able to manage the relationship with your business through a self-serve online portal across a variety of activities – from supplier registration to quote submission, PO acceptance to invoicing. And moving the workload to the supplier base of course means a very substantial reduction in administration and accounts payable for your team.
2. Automated everything.
Automate, automate, automate. Everything from budget management through requisitions, purchase authorisations, PO matching, approval processes and payment is fully automated – meaning less labour cost and a big increase in overall efficiency.
3. No budget. No spend.
If an employee has no budget, then they cannot place orders on your suppliers. It’s that simple.
Approvals can be made and orders can be transacted while your employees are away from their desks – increasing the availability, speed and efficiency of their entire process.
5. Platform Standardisation for Global Availability.
There are many hidden costs in using third-party procurement products – from the expense of integration to the headaches of increased manual data-entry, cross-checking and reconciliation. By integrating P2P functions directly into your SAP system you deploy it to every employee with purchasing authority globally – meaning you can eliminate all of these third party costs in one go.
As you can see, Invenio’s P2P Solutions offers you the opportunity to do more than just shave a few more pounds from your supplier contracts – which is something most off the shelf P2P systems can help with. Invenio’s P2P Solutions actually re-engineers the way in which the process happens – so you can save in areas that you perhaps hadn’t even considered before.
Want to know more?
If this has sparked your interest and you would like to find out more about how Invenio’s P2P Solutions can help YOUR company save time and money, please email firstname.lastname@example.org or call our SAP Advisory Team on +44 (0)330 440 1800.