Originally published on InContext, a Lexmark website.
The jig is up, the news is out; they’ve finally found me—
The renegade who had it made retrieved for a bounty.
Never more to go astray,
This will be the end today
Of the wanted man.
Does your purchasing department have a renegade in its midst? You know the signs—unauthorized spending, costs unaccounted for, the quick fix obtained for a premium, failure to capitalize on negotiated terms, a reliance on petty cash, and so on. These renegade spenders, with their maverick spending, are costing you money. Every day.
According to Aberdeen Group, organizations lose nearly 25% of every dollar spent on account of uncontrolled spending, usually because people are circumventing standard requisition processes, thus missing out on preferred pricing and terms.
As a procurement professional, you want to eliminate that waste, and boost your margins, freeing up that cash for any number of valuable projects or plans. Luckily, that’s our specialty. Lexmark’s purchase requisition processing solution for SAP helps eliminate renegade spenders from the equation. Here’s how it works:
- A purchaser creates a requisition document, which is entered via a user-friendly form, with fast access to existing catalogs directing users to standard/accepted materials and services.
- The organization customizes its review and approval workflows; all approvals leave an electronic audit trail and all relevant documentation is available on demand.
- Final approval yields an automatic purchase order in SAP; the order is available across the purchase-to-pay (P2P) operation for quick matching with confirmations, notes and invoices, and the end-to-end document trail supports price negotiations later.
The value of automated purchasing routines was observed firsthand by Allweiler, a German manufacturer that implemented the ReadSoft Process Director application for SAP. “Highly satisfied” with the results, the organization reported a considerable efficiency gain across P2P.
“The optimizations in Procurement then also have a positive effect on the processes in Accounts,” said Boris Müller, Allweiler’s head of procurement. “It is, of course, a great advantage that by using Process Director, the number of invoices with an order reference increases. We now even record taxi rides in the SAP system. This greatly simplifies the automated assignment and subsequent processing with the invoice processing solution.”
Automating purchasing processes heightens visibility, which enables greater spend control and better standing for negotiating optimal supplier terms. You know who initiated the order, you can see who approved it, and you can then reference the data when it comes time to process the invoices. The technology fits seamlessly within the SAP environment staff is accustomed to, and workflows can be built around whichever processes and safeguards the organization deems fit.
Stomp out wasteful spend. Follow the paper trail. Shackle that renegade.