Capgemini recently evaluated the newest and most critical functionalities offered by today’s procure-to-pay solution providers in their 2020-2021 Digital Procurement Research Report. The research looks at the key trends that are influencing technology innovation. Among the solution providers evaluated was – you guessed it – Vroozi.
In this blog we’ll offer our take on Capgemini’s findings and the impact of technology innovation on the procure-to-pay landscape.
1. Purchasing requires the right (automated) buying channel
Organizations are increasingly searching for tools that make their buying process easier – without long trainings and onboarding. They want an intuitive, easy-to-use and modern interface that seamlessly enables them to find and buy the goods and services they need. Solution providers are delivering, with roughly 67% of solutions having the ability to connect to third party punch-out catalogs and offer a cross-catalog search option.
Integration with existing ERPs also plays a role in elevating the user experience. In fact, 62% of solutions can automatically convert ERP orders to purchase requisitions (PR) and approved catalog PRs to purchase orders (PO). Making things even simpler for the buyer, 52% can check the PR and 66% can check the PO for compliance against exiting contracts.
From our perspective, remote access and usability are also key. To boost adoption, your purchasing system must be modern and mobile – and capable of enabling your employees to work effectively from anywhere and everywhere.
By simplifying and digitizing the buying experience, organizations increase financial control, reduce maverick buying and ensure they always get the negotiated rate. Digitization also speeds up the purchasing process by eliminating manual entries and automating paper-based processes, freeing procurement teams to focus on more valuable, strategic initiatives.
2. Reducing the high volume of invoice errors requires AP and procurement collaboration
Given the manual nature of many AP and procurement functions, we were excited to see the attention Capgemini placed on managing invoice errors. Invoices often come in with missing information, in different formats, or can’t be matched with a PO. This creates significant headaches for procurement and finance teams.
Today we’re seeing more companies automate the AP function, specifically when it comes to invoice matching. Vroozi, for instance, offers three-way invoice matching, which automatically catches billing errors and mistakes. This ensures you only pay for what you buy and receive, and don’t waste hours of manpower manually reviewing vendor invoices.
Capgemini found that more than 79% of solutions include invoice receipt functionalities, including checking the invoice for consistency and compliance, identifying duplicate invoices and receiving data from ERP systems. When an invoice is not matched, 71% of solutions can automatically determine the root cause and alert the supplier – saving the business time and money.
3. Spend analysis is key
Procurement teams are overloaded with data today – and it often comes from disparate systems. Digital procurement platforms can automatically integrate various data sources to create a single view of all financial and procurement data. When armed with all financial data in a central place, leaders have the information they need to increase savings, reduce risk and make better, more informed decisions.
Recognizing the importance of spend data, 91% of solutions include spend analysis. On top of that, 82% of solutions can consolidate spend data from multiple sources, 88% are able to show data on different levels and 76% are able to classify spend analysis reports.
Where Vroozi fits
When it comes to Vroozi and our capabilities, Capgemini described us as a “modern, mobile and modular procurement and AP automation platform that combines a consumer-like experience with enterprise-grade financial controls.” Our functionality sweet spot: digitizing the entire procure-to-pay process, including purchasing, invoices and payments, to deliver better margins, stronger financial controls and the best user experience possible. Learn more about how Vroozi helps digitize procurement and AP operations by scheduling a personal demo today!