Business Expense Management - Srm
Continuous Improvement is critical to the success of your organizations supply management program
. As an organization's supply management activities increase in importance in this new business environment these organizations will continue to look at continuous improvement programs as a means of achieving and maintain their supply management advantage.
Continuous improvement initiatives can be applied to many of the various supply management components such as disposition/investment recovery, distribution, inventory control, logistics, manufacturing supervision, materials management packaging, product service development, purchasing/procurement, quality, receiving, strategic sourcing, transportation/traffic/shipping and warehousing.
Supplier Relationship Management and Procurement Plans provide solutions for organizations that require better controls in spend management, inventory control, requisition approvals, materials receiving and other modules.
By working with procurement specialists, managers have implemented continuous improvement solutions that include: spend control, vendor analysis, shipment tracking, inventory analysis and much, much more.
E-purchasing and supplier management streamlines your entire business purchasing process
Companies with traditional paper-based purchasing systems often have difficulty making strategic and timely purchases and holding suppliers accountable for transactions. Employee purchases frequently deviate from company spending policy, leading to lengthy order fulfillment cycles and over or duplicate spending.
Company approval workflows can be drawn out and costly if signatures need to be obtained by sending purchase requisitions, purchase orders and invoices to multiple office locations.
Purchasing controls
Look for a system that is designed to keep you on budget while making the purchasing process flow smoothly. Everything is managed electronically, from purchase requisitions and purchase orders through to authorization for payment, reducing or eliminating the need for paper
It is critical that your PO's and ordering are tied directly to your electronic AP invoice module.
This ensures that online invoices are matched to purchase orders and packing lists, eliminating duplication, over spending and paying for products and services not rendered. With AP Invoice Management, you can easily apply company policies and controls to purchases made with or without purchase orders.
What if my vendors are not equipped with an automated system?
When paper-based vendor/supplier invoices are electronically processed through your system you gain transactional efficiencies. You know who ordered the products or services, whether the right people approved them and you can attach any supporting documents by coding each invoice the PO and the supplier... It's easy!
Take advantage of your operational efficiencies
Because everything is done electronically through your system, you won't be spending money to overnight invoices for approval. Real-time visibility into which invoices are due enables you to easily take advantage of vendor discounts for early payments. Your AP Invoice Management system will act as an electronic check and balance buffer between the people in the company who spend money, the managers who approve expenditures and the accounts payable team who processes invoices for payment.
Knowledge is most definitely power
Some of the most innovative and successful companies have been working to develop expertise in Supplier Relationship Management. Some, in fact, have elevated it to the management committee level. Among Fortune 1000 companies, perhaps 10 to 20% have recognized it as an area for strategic focus in their organizations.
Create a Competitive Advantage when you successfully change from a classical purchasing approach to a strategic supply management approach. Smaller organizations without this type of current knowledge and expertise can be just as successful utilizing an agency dedicated to delivering them this type of Expense Management expertise on a project basis.
by: Tom Mann
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