Leveraging a business network to automate the matching of order, invoice and contract data represents a huge advance in transaction processing. This includes a strategy of buying from the right suppliers at the right price.
Below is an article from sdcexec.com that describes the benefits of transaction processing. This approach helps organizations better manage their spending and enforce contract compliance, especially for non-PO invoices. After reading the article give us a call at SpendBridge so we can partner with your organization to implement transaction processing in your organization.
Source: sdcexec.com | Re-Post SpendBridge 2/1/2018
How can companies ensure that their employees are buying from the right suppliers at the right price?
In the world of accounts payable, approving invoices that don’t conform to contract terms may be an epidemic. While procurement may do a good job of negotiating contracts with suppliers, someone needs to be the enforcer. How can companies ensure that their employees are buying from the right suppliers at the right price, eliminating contract leakages that could cost an organization tens to hundreds of millions of dollars each year?
In the past, companies lacked the resources and manpower to monitor contract leakage during the invoice approval process. Now, thanks to the power of business networks, companies, and their suppliers can collaborate across the procure-to-pay process to ensure the enforcement of contracts, saving a significant amount of time and money.
Today, trading partners that have embraced purchase order (PO) and invoice automation over a business network can ensure the perfect payable. Buyers can deliver an electronic PO that the supplier can flip into an electronic invoice, guaranteeing the two-way match. Better yet, the same level of control can be extended to non-PO invoices by matching the invoice against—or creating an invoice from—a contract. Organizations can apply this automated matching process to any of the four contract types: