Chief Procurement Officer Summit Spring 2014

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  • Automating the Entire Procure-to-Pay Process:
    Putting Power Back in the CPO’s Hands




    Eyal Rosenberg of Nipendo, a solution provider at the marcus evans Chief Procurement Officer Summit 2014 and 2015, on why automating the entire procure-to-pay process makes sense.

    Interview with: Eyal Rosenberg, Co-Founder & Chief Executive Officer, Nipendo

    FOR IMMEDIATE RELEASE

    Many Chief Procurement Officers (CPOs) believe that having invoices in an electronic format is enough, but they still end up investing USD 15-30 per invoice just to reconcile and address errors, according to Eyal Rosenberg, Co-Founder & Chief Executive Officer, Nipendo. “With procure-to-pay automation, this figure can go down to less than two dollars per invoice,” he says.

    Nipendo is a solution provider at the upcoming marcus evans Chief Procurement Officer Summit 2014 and 2015.

    Where do most procure-to-pay technologies fall short?

    There is a fundamental difference between sending purchase orders and receiving invoices in an electronic format and being able to automate the entire P2P process. Current solutions - such as trading networks, e-invoicing, and Electronic Data Exchange are focused on moving trade documents electronically between buyers and suppliers. They do not really automate the P2P process and fall short on adding the real value of touch-free, error-free, straight-through processing.

    If you are just getting an invoice electronically, you still have to go through multiple labor-intensive and error-prone steps before this invoice is approved for payment. You need to make sure the data is correct; the tax and exchange rates were calculated correctly; the prices and payment terms match your agreement or purchase order; and that you actually received the goods. You also need to make sure it is properly recorded and reconciled in your ERP system.

    If you do not have a system that can automate the entire process end to end, you may be a bit better than you were with paper documents, but it is still a very inefficient way to operate. Industry surveys commonly show that processing and reconciling an invoice, even an electronic one, can still take weeks and cost upwards of USD 15-30.

    What does Nipendo do differently?

    Automating the entire procure-to-pay process can only be achieved through a platform that encapsulates the understanding of the P2P processes, govern, manage and automate it.

    Any attempts to do it to-date resulted in code-heavy systems that required extensive customization for each buyer-supplier relationship. Some companies were able to automate the process for a handful of suppliers, but it was just too expensive and time-consuming to implement and maintain on a large scale.

    When we started Nipendo, we invested many person-years on developing a completely new technological approach to this problem. Our Supplier Cloud platform enables any number of organizations to define their P2P processes, the logic the rules and the validations without any code changes.

    Another key differentiation is our ability to handle all spend categories with equal efficiency. Most implementations to-date focus on either indirect spend (mostly thorough supplier networks, p-cards, and portals), or on limited scope EDI implementations for the largest direct material suppliers.

    Our customers routinely report over 95 percent straight-through processing of purchase orders and invoices, touch-free and error-free, with all of their suppliers. Invoices are processed and approved for payment within minutes at an average cost of less than USD 2 per invoice. It brings a new level of efficiency and transparency to the procure-to-pay space that simply cannot be achieved with conventional technologies.

    Does this replace technologies that a company has already invested in?

    One of the key design requirements for our platform was to keep it open. We are completely agnostic to the systems and connections that are currently in place, therefore organizations can continue to use any existing solution they have already invested in, including EDI exchange, supplier portals, etc. We seamlessly integrate with these systems and with the enterprise’s ERP system, while automating and reconciling the entire P2P processes. It is an additional layer of automation that allows companies to elevate their existing solutions to the point where 95 percent or more of buyer-supplier transactions are automatically processed and reconciled across all systems.

    This approach makes the implementation of Nipendo both quick and risk-free. You do not have to scrap what you have today, just make it better. A typical implementation of Nipendo takes just a couple of months. It is not your typical multi-year, high-cost, high-risk B2B implementation.

    What does this all mean for the CPO?

    For the CPO, automating procure-to-pay removes the friction from the process. It allows the procurement organization to focus on strategic issues and the management of supplier relationships, rather than spending valuable time and resources on back-and-forth resolution of delivery and payment discrepancies.

    It also means that processes can be standardized across all spend categories and supplier types, so there are fewer exceptions and less room for errors, fraud, and other supply chain interruptions.

    Suppliers are extremely satisfied with the solution. It saves them a lot of work and gives them a level of transparency and confidence they never had before. The bottom line is that happier suppliers are easier to work with, so that is a big bonus for the CPO on top of all the above mentioned benefits.
    Interview by:
    Sarin Kouyoumdjian-Gurunlian, Press Manager

    For more information, contact: Jennifer Keljik, marketing manager
    Tel: +1.312.540.3000 x6592
    Email:
    j.keljik@marcusevansch.com


    The Finance Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.

                                  

    Please note that the Summit is a closed business event and the number of participants strictly limited.

    About Nipendo

    Nipendo’s buyer-supplier collaboration platform empowers organizations around the globe to reach a new level of procure-to-pay automation that is not just paperless but also errorless and effortless, achieving over 90% straight-through processing of supplier transactions directly to their ERP systems. Nipendo enables seamless interoperability with any supplier communication solution—including EDI, supplier network, and e-invoicing—allowing enterprises to leverage their existing implementations and extend fully-automated electronic procurement and invoicing to the entire supplier ecosystem.

    www.nipendo.com

    About marcus evans Summits

    marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, case studies, roundtables and one-on-one business meetings. All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.com