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Francesco Baradel,
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Optimizing the Procure-to-Pay Cycle with SAP Analytics Integration
Discover How OpenText VIM and SAP Analytics Cloud Are Transforming Invoice Management.
In today’s business landscape, digital solutions are revolutionising the procure-to-pay cycle, enhancing efficiency, cutting costs, and enabling performance tracking.
Managing the accounts payable process for companies dealing with high volumes of vendor invoices can present various challenges that slow operations and impact financial outcomes. Key pain points in passive invoice management that can be addressed with advanced analytics include:
- Lack of Visibility into Invoice Status: Limited insight into the status of incoming invoices can lead to payment delays and tracking difficulties.
- Slow, Error-Prone Manual Processes: Manual steps hinder automation efforts, increase the risk of bottlenecks, and create potential for administrative delays.
- Difficulty Identifying Invoice Blocks Quickly: Companies that fail to clearly identify blocked invoices face negative impacts on cash flow and strained supplier relationships.
- Challenges in Monitoring Team Performance: Ensuring operational efficiency across departments can be complex, with the added risk of overburdening staff without streamlined, automated processes.
Companies can resolve these issues by integrating tools like OpenText VIM and SAP Analytics Cloud, achieving a more transparent, efficient, and responsive accounts payable process.
OpenText Vendor Invoice Management (VIM)
OpenText’s Vendor Invoice Management (VIM) is an advanced solution designed to automate and streamline the vendor invoice management process. Seamlessly integrating with SAP, VIM manages the complete invoice lifecycle, from receipt to approval and payment.
Key Benefits:
- Process Automation: Significantly reduces manual tasks, minimising errors and speeding up processing times.
- Exception Management: Quickly identifies anomalies and blocks in the invoicing process, enabling timely intervention.
- Increased Transparency: Provides real-time monitoring of invoice status and payment process performance.
- Cost Reduction: Optimizes resources and lowers operational costs associated with manual invoice management.
Integrating Analytics with VIM
The integration of SAP Analytics Cloud with OpenText VIM further enhances monitoring and analytics capabilities in the accounts payable process, delivering a smoother experience with fewer customizations. This synergy enables companies to gain in-depth insights into invoice management, supporting data-driven decisions and continuous improvement strategies.
Key KPIs for Performance Monitoring
A crucial aspect of this integration is the ability to define and monitor specific Key Performance Indicators (KPIs) that provide detailed insights into the efficiency of the procure-to-pay cycle.
Here is an overview of the most relevant KPIs:
- Invoice Value: Tracks the total volume of financial transactions.
- Number of Invoices: Measures the administrative workload.
- Employee Count: Reflects the company’s operational capacity.
- Average Employee Cost: Assesses efficiency in managing human resources.
- Exchange Rate: Essential for companies operating internationally, as it directly impacts costs and revenue.
For more complex KPIs:
- Time to Process Invoices: Measures efficiency in handling invoices.
- Block Impact on Revenue: Indicates the impact of invoice blocks on cash flow.
- Number of Late-Paid Invoices: Monitors payment punctuality.
- Touchless Rate Trend: Evaluates the level of automation in payment processes.
- Average Resolution Time: Quantifies the time needed to resolve invoice-related issues.
- Average Resolution Time by Department: Analyzes the performance of various teams in resolving issues.
- Invoices Paid Late: Measures the company’s effectiveness in meeting payment terms.
The Importance of KPIs in SAP Analytics Cloud Integration with VIM
Implementing these KPIs through Analytics integration with VIM enables companies to:
- Identify Bottlenecks: Pinpoint process stages that cause delays or inefficiencies.
- Evaluate Corrective Actions: Track the effectiveness of strategies implemented to improve the process.
- Optimise Resources: Efficiently allocate personnel based on workload and skill requirements.
- Improve Cash Flow Management: Ensure timely supplier payments, avoid penalties, and maintain strong vendor relationships.
- Reduce Operational Costs: Minimize the time and resources spent on handling exceptions and invoice blocks.
SAP Analytics Cloud: Enhancing Decision-Making Processes
SAP’s advanced analytics capabilities enable the creation of interactive dashboards and detailed reports, offering a comprehensive, real-time view of the KPIs mentioned above.
Key Features:
- Real-Time Reporting: Instant access to up-to-date data is crucial for timely decision-making.
- Custom Dashboards: Visualize the most relevant KPIs tailored to various business stakeholders.
- Predictive Analytics: Leverages advanced algorithms to forecast future trends, identifying potential risks or opportunities.
Customisation of KPIs and Solutions
Integrating OpenText Vendor Invoice Management (VIM) with SAP Analytics Cloud provides a powerful solution for optimising the procure-to-pay process. By closely monitoring key KPIs, businesses can identify improvement areas, implement effective strategies, and measure the impact of their actions. This synergy between automation and advanced analytics boosts operational efficiency and supports a data-driven culture essential for addressing the challenges of an ever-evolving market.
Added Value for Your Organization
The functional and technological support from Ccelera allows you to adopt analytics solutions that are aligned with the organisation’s strategic objectives. Starting from high-level needs, you can identify KPIs, dimensions, and the ideal user experience, aiming to create and implement a centralised solution that answers all key business questions. Our approach minimises the proliferation of redundant, non-impactful reports and dashboards, reducing the time spent searching for answers to business questions. Furthermore, it enables the definition of process strategies and the centralisation and globalisation of core KPIs, providing unified guidelines across the organisation.
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Claudia Pennino,
26/09/2024
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Discover the current regulations, the 2025 mandate, and SAP integration.
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