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If every time I were paid a penny for answering this question, I would have been a millionaire. OCR (Optical Character Recognition) simply converts your text from an image into text. OCR is a great technology, but OCR does NOT tell you specifics within the converted text, e.g. OCR will not tell you where the tax line item lies or where the PO number from your invoice. This is where advanced technology like Machine Learning that learns data patterns, interprets the data elements, and answers the above questions without telling the system the exact location of those fields. To sum it, we use OCR (if invoices are in image form), but our magic starts only after that.

Similarly in Collection Complexity survey conducted in 180 countries have highlighted the difficulties faced by SMEs in all the countries. DPO’s for India and China are around 65 days and 92 days respectively while businesses in US wait for 51 days to get payments for delivered goods. Longer payment cycles imply small vendors are facing difficulties in managing the cash-flow within the business.

To identifying bottlenecks and maximize the efficiency of the accounts payable department, companies should define Key Performance Indicators (KPIs) for AP department. KPIs help the AP team to continuously measure your performance against key business objectives and sets the target for continuous improvement. Accounts Payable KPIs provide very useful data for crafting short and long-term procurement and payment strategies.

For More Details Visit: https://aavenir.com/3-ways-ai-can-optimize-vendor-invoice-processing/

Most enterprises use a manual approach for data reconciliation and payment management. They spend hours reading invoices manually, extract information (like invoice date, invoice number, due date, invoice amount, tax amount, supplier name, PO reference number), validate that information, and then enter the invoice data in the accounts payable system.

For More Details Visit: https://aavenir.com/best-practices-automating-invoice-approval-process-for-po-vs-non-po-invoices/

For More Details Visit: https://aavenir.com/closing-the-gap-procurement-and-accounts-payable/

For More Details Visit: https://aavenir.com/ai-enabled-accounts-payable-on-servicenow-for-zero-touch-invoice-processing

In early May, USA started facing severe meat shortages. The shortage is so dire that consumers are staring at prolonged periods of fluctuating meat supply. In the USA, processed meat comes from only three companies that are facing plant shutdowns. (One plant shutdown causes a deficit of ten million servings of beef per day). The numbers are staggering but the question remains how organizations can work in such unprecedented times.

To mitigate supply chain risks in unprecedented times, some organizations have implemented initiatives such as Supply Chain Mapping. Procurement functions can map the Supply Chain from the conversion of goods from raw material to semi-finished conversion to finished goods. Using this map, organizations can indigenously manage suppliers or goods movement and proactively act to transfer risk over a complete supplier base within the ecosystem.

Every organization wants to implement efficient internal business processes to achieve competitive advantage and improve the bottom-line gains. Organizations are not only just rethinking business processes but also redesigning the entire process workflows to improve productivity. Fortunately, some powerful workflow platforms can efficiently coordinate work between all stakeholders,  orchestrate a sequence of activities and automate repetitive human tasks to help companies achieve better business outcomes. No wonder, one such platform, ServiceNow is being used by 5400+ enterprises and growing at 33% YoY..!!