Why You Should Keep Approvers Out Of Your ERP

January 17, 2024
Why you should keep approvers out of your ERP
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In the accounts payable function, efficiency is king, and this is especially true for approvals of purchase requests and invoices. The traditional method of requiring approvers to log into an enterprise resource planning (ERP) system can be fraught with problems, leading to bottlenecks and inefficiencies. This is where Kloo's innovative approach comes into play, streamlining the approval process with email-integrated solutions. 

The Problem with Traditional ERP Approvals 

When approvers are required to log into an ERP system for each purchase request or invoice, the process can become cumbersome and time-consuming. This requirement often leads to several issues: 

  • Increased Friction and Bottlenecks: Each additional step in the approval process is an opportunity for delays. Requiring a log-in for every approval can deter prompt action, especially from busy senior staff, leading to bottlenecks in the workflow. 
  • Increased Licence Costs: Most ERP systems operate on a user-based licensing model. Requiring every approver to have a login increases the number of licences needed, thereby inflating costs unnecessarily. 
  • Late Payments and Penalties: Delays in the approval process can have a domino effect, resulting in late payments to suppliers. This not only incurs penalty fees but can also strain relationships with vendors, potentially impacting future negotiations and credit terms. 
  • Damaged Supplier Relationships: Consistently late payments can damage the trust and reliability established with suppliers. In the long run, this can lead to less favourable terms, reduced willingness to accommodate rush orders, or even the loss of valuable suppliers. 

Kloo's Email-Integrated Approval Solution 

Understanding these challenges, Kloo has developed an innovative solution that bypasses the need for ERP logins. Our approach utilises email-integrated approvals, offering several benefits: 

  • Approve or Reject from Your Inbox: Approvers can make decisions directly from their email inbox. There's no need to remember another set of login details or navigate through the ERP system. This simplicity significantly speeds up the approval process. 
  • AI-Powered Insights: Alongside the convenience of email integration, Kloo's system is equipped with AI-driven insights. This technology provides approvers with valuable data and context, enabling them to make informed decisions swiftly. 

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  • Enhanced User Experience: By removing the need for multiple logins and streamlining the approval process, Kloo enhances the overall user experience. This not only benefits the approvers but also the finance team and other stakeholders involved in the process. 
  • Improved Supplier Relationships: With a more efficient approval process, payments to suppliers can be made timely. This punctuality strengthens relationships with suppliers, ensuring better terms and collaboration in the long run. 
  • Reduced Licence Costs: Since Kloo's solution operates via email, it eliminates the need for additional ERP user licences. This reduction in licensing requirements translates to significant cost savings for businesses. 

Key Takeaways 

The traditional method of ERP approvals is an outdated system that businesses can no longer afford, both in terms of time and money. Kloo's email-integrated approval system represents a leap forward, combining efficiency, cost-effectiveness, and enhanced supplier relationships. By adopting this approach, companies can enjoy a smoother, more streamlined process, contributing to overall business success. 

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