Based on our experiences, research and observations, there are common factors that mainly contribute to pains in managing procure-to-pay cycles for both Buyers and Supplier. Incredibly, many of pains in supply and demand chains can be traced back to the following three sources.
Many individuals are involved in a long chain of processes. Coordinating among internal units is already complicated enough, let alone with external parties.
Manual Work, Paperwork, and Double Work are triple time-tested legacies more suited to old-fashioned businesses. But they just cannot keep up with today’s requirements.
In most cases, information without technology means much delayed information, and in many cases, no information at all.
Some of the pain areas commonly encountered include the following.
Low productivity levels due to disjointed IT systems (or simply lack thereof) and uncertain inventory levels resulting in over- or under-ordering are common problems.
Typical administrative issues including miscommunication, delays in execution, long lead time, and lost documents.
Lack of reliable and delayed information are headaches in managing such key activities as buying decisions and vendor/customer management.
Unresolved daily challenges could lead to much serious complications in running the business.
Human errors and failed processes may cause, for an example, increased delivery risks (accuracy, timeliness, quality).
High HR expenses, costs of inventory, handling and leakage costs can create cashflow pressure.
Difficulty in identifying & keeping the right Suppliers or Customers can lead to failure to achieve competitive edge and organizational objectives.