Spend Management Software Linked To Outperforming Competition
It’s been said by everyone from the AP professionals that use it to the ERP vendors that deploy it, from Gartner to Aberdeen and everything in between: spend management solutions have made an indelible mark on accounts payable and business process management, enough so that it’s becoming tougher to find a competitive company that’s not at least planning a spend management project in the near future.
Much of purchasing software’s beneficial impact can be seen in the cost reductions and efficiency gains it brings to AP departments. They’re cost centers; there’s not a lot a of revenue-generating coming out of an area that handles payment processing, bills, taxes and expense reports, no matter how important it is to take care of those functions. Achieving accurate, efficient results while lowering the cost to do so is typically the best a business can hope for, but even that’s a pretty good goal to have…and fairly easily obtainable.
Business Finance recently ran a short article discussing the benefits accrued from shared services, including gains in efficiency, reduced costs and less waste. Overall, their research shows what is to be expected: top performing companies maximized their usage of automation to bring about the productivity increases and cost reduction they needed. Truly, two statements bring the entire article down to its most basic points, a fairly startling comparison:
1) “If we consider the top 10 all-around best performers, we find that they perform manual journal entries at rates between 0.75 percent and 6 percent.”
2) The very worst of the bunch are up to their necks in manual journal entries: 57 percent of all entries.”
The numbers have been backing up the claims for years, but research such as this serves as an excellent reminder as to why companies are pushing to automate manual processes – they’re a time and money sink. From expense management to e-procurement and beyond, software is redefining not only how businesses function, but how they strategize as a whole.
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