09/16/2020 | Press release | Archived content
Because of that it often gets demoted to the lowest of priorities. Not dealing with GR-NI, however, creates financial liabilities and can introduce significant risk to your business operations.
Automating the Cumbersome
The primary GR-NI concern is that a supplier delivers goods to the business - but the invoices for those goods never arrive in the Accounts Payable department. The AP team must pull lists of goods received and compare that to invoices in the AP database to find these gaps. These provisions may add up over time. And without an automated way to monitor and resolve discrepancies, the paperwork just keeps piling up. These piles have risk - liabilities are incorrectly stated, provisions in the GR-NI account tie up capital, supplier relationships may suffer, and credits may be missed.
However, with a simple software-based supplier reconciliation process using procurement analytics in place, an organization can automate this cumbersome process to save hundreds to thousands of man hours every year. And with the same system, it can improve its audit processes and even automate the process of supplier communication to resolve issues as they arise.
For example, one of our clients, a vegetable processor, works with over 2,000 suppliers and receives nearly 300,000 invoices every year. Using a manual approach to invoice reconciliation, they tied up four AP staff members for a week every month to reconcile dozens of statements from across 2,000 vendor accounts. Inadequate audit controls, misstated liabilities, and the frustration of dealing with vendors chasing invoice status all took their toll.
Implementing a new GR-NI process needs some focus and targets to be successful. For example, our client focused on critical preferred supplier relationships with high volume to start. This limited the initial number of suppliers to the 200 most critical ones.
A simple overview of their process is:
Key elements of the procurement analytics solution are:
To maximize value, look for the operational areas in your company that can benefit from better processes. Tedious tasks like resolving goods received-not invoiced issues may not fall under your radar, but automating and improving these processes can deliver a serious positive impact. Logility is an ideal solution for supplier reconciliation processes.
The future of supply chain management is constantly reshaped by challenges that keep industry leaders up at night. Everything from…
The cloud has emerged as the cornerstone of modern business and supply chain innovation. From retail and food and beverage…
Supply chain issues have put many companies into crisis mode. Avert crises and manage your supply chain more efficiently with…