In the ever-evolving world of finance operations, Accounts Payable (AP) management remains a critical yet often under-optimised function. Despite the rapid advancements and efficiency gains witnessed in many areas of business and finance, AP processes are still plagued with inefficiencies. The Times reported that more than half of small and medium-sized enterprises (SMEs) experienced an increase in late payments in 2023, illustrating the persistent challenges in the AP sector. While delayed payments are the most visible manifestation of these inefficiencies, the root of the problem often originates much earlier, during the internal organisation stage of Purchase Order creation.
In this blog, we will outline how this initial stage of the AP process can be significantly improved through automation, setting the stage for a more efficient, streamlined financial operation in your business.
Manual processing of purchase requests and orders is fraught with challenges:
Purchase Order Automation revolutionises the traditional purchase order process. It involves using centralised software to automatically manage and oversee purchase requests, from raising and approving to creating orders within the ERP system. This technology significantly reduces the need for manual data entry and the physical routing of purchase orders, enhancing efficiency and accuracy in the process.
While automation can revolutionise many aspects of purchase order management, it is important to acknowledge that human intervention is both necessary and financially strategic during this organisation-internal stage. Striking the balance between human oversight and technological automation is crucial.
While discerning tasks such as approving or rejecting purchase requests necessitate and benefit from human discernment and strategic insight, automation can take over administrative tasks and equip decision-makers with a toolkit for smart spend decisions.
Here are 4 ways that automation can improve the Purchase Order process within your organisation:
In conclusion, Purchase Order Automation represents a crucial step for finance teams seeking to optimise their operations. By integrating this technology, businesses can achieve unparalleled efficiency, accuracy, and cost savings, marking the end of manual and cumbersome purchase order management.
Kloo's platform streamlines Purchase Order management from start to finish, removing unnecessary manual tasks like PO generation, and providing strategic support where human intervention is necessary, empowering approvers with the insights to make faster and more effective spend decisions.
Learn more about Kloo's PO Management solution here.