As companies struggle with inflation across the board, it’s important for them to offset some of that pricing pinch and drive some deflation by removing inefficiencies from their processes. One way to do that is by updating their invoice management practices by adding automation, transparency and data analytics that help companies negotiate better terms with their suppliers.
Adding Transparency to Complex Deals
One problem, said Tejpal, comes from procurement in the cases where there are large, complex deals. For example, there might be cell phone bills that the accounting team has to allocate, with 10 bills going to human resources and 22 bills going to sales. When the accounting team does this manually, without the right level of transparency, they often have to deal with someone from HR, for example, saying they have only nine cell phones, not 10.
A multinational company can remove that inefficiency with an invoice management system that covers both intercompany and global vendor invoice management.
“By marrying those two, you’re showing the end-to-end,” Tejpal said. “The invoice comes in, and right down to the end, you can invoice it to any part of the world, and you have an allocation engine that gives you 100% transparency and makes sure you’re in compliance with the different tax rules in 100-plus countries.”
Read the full article at: pymnts.com