The Modern Myth: Real-Time
Insights & Analytics for Enterprise
How to Receive Real-Time Analytics by Utilizing Business Partner
Most enterprise software offers real-time data and analytics. Ask somebody who has implemented a high-end internal system whether they enjoy the real-time analytics as promised. Let us bring you some examples:
Lagging information in the ordering process.
Once the Purchase Order (PO) has been sent to the supplier, it is best to ask the supplier for the PO confirmation and state it to the ERP systems. PO confirmation can inform procurement to create another PO, inform the operation team of any potential delay in production, and inform the finance team of possible financial projection changes due to different suppliers required to be approached. The PO confirmation is usually missed to be updated in a thigh schedule or experiences a delay of up to one day on average. Furthermore, procurement rarely recaps the supplier's response time in confirming the PO. Although it is not crucial in the short term, it can be beneficial in the long term as a company evaluates the quality of the suppliers.
Lagging information in the goods delivery
Admittedly, a good supplier will inform you once the goods are ready from their factory and ready to be picked up or already in the delivery process, but some software does not provide a module for procurement to input this information. Some suppliers might also not inform the Delivery Order (DO) or Airway Bill (AWB) before the procurement team does the follow-up. Complex operations might delay the information flow from supplier to buyer or buyer’s procurement while inputting data into their internal reporting tools.
Lagging information in payment reconciliation
After the invoice has been checked, the finance team will execute payment for each due invoice. Ideally, they will have to inform the suppliers, and both parties will wait for the money to be settled, but what if the payor did not notify the supplier? The supplier must regularly check the bank account to do a reconciliation. The reconciliation will take up to one day from when the fund is settled.
Breaking the Myth: Eliminating the Root Cause of Information Delay
If you notice, the failure to deliver real-time information is caused by the manual data input rather than by the software, including the ERP itself. The ERP acts as a centralized software, serving as a backbone of all operations within a company. It is very resourceful and primarily required for a large-scale business to operate. But leveraging digitalization is never zero and one, is never black and white. Further digitalization must be implemented between a supplier and buyer via Paper.id supplier and buyer portal. Not only does it result in faster invoice processing, but it also enables real-time analytics and insight into payables and receivables areas. Moreover, it promotes reduced operational effort, decreased Day Sales Outstanding (DSO), and minimized fraud.
By using the supplier portal, suppliers have the opportunity and incentive to do PO confirmation to secure the order they received. The PO and the PO confirmation can be integrated into the ERP via API. Moreover, as a requirement for invoicing, the supplier can upload the DO and AWB when the goods are ready to be delivered. By doing this, manual input can be minimized, and so does the human error and lagging in information flow. Also, when the finance team executes payment, automatic reconciliation with real-time notifications will be provided both for buyer and supplier. When the fund is disbursed, the reconciliation and notification will also be triggered, leaving transparency of money flow to both parties. Of course, your enterprise can also receive real-time information on payment from your buyer by implementing a buyer portal.
How Real-Time Information Helps Business?
Real-time analytics helps many departments within a company make tactical decisions, mitigate future potential blockers, and acknowledge severe problems before they get bigger. Delays in analytics, though seemingly minor, can have hidden impacts on various aspects of the business.. With the paper.id supplier portal, buyer portal, and proper change management, all businesses can continuously track, and monitor their metrics in procure-to-pay and order-to-cash with a lighter operational burden. Learn more about how Paper.id can streamline your procure-to-pay and order-to-cash process and book our time now.