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Nov 22
Procurement during fall and the holidays

Harnessing the Seasonal Shift: A Procurement Perspective on Fall and Holiday Dynamics

By Procurement No Comments

 

When the hues of autumn leaves signal a change in season, it’s more than a picturesque moment—it’s a cue for businesses to engage in a tactical ballet of procurement.

This isn’t just about buying extra supplies for the office holiday party. No, this time of year has profound effects on procurement, supply chain, and the overall rhyth of business.

Let’s dive into the seasonal nuances and discover how smart procurement strategies can transform these challenges into opportunities.

Forecasting the Holiday Hustle

Annually, the holiday period sees consumer spending skyrocket, with events like Black Friday and Cyber Monday marking high tides of consumerism.

Businesses must forecast this demand swell and ensure their supply chains can withstand the surge. Collaborating with suppliers, securing advantageous contracts, and employing sophisticated platforms such as SAP Ariba™ to manage the flux of supply and demand are critical measures.

Steering Through Supply Chain Turbulence

Autumn heralds not just a cascade of leaves but the climax of hurricane season, opening the act for winter’s disruptive performances.

Supply chain resilience in this period hinges on the availability of alternative suppliers, transparent communication, and instant visibility into inventories and shipments.

A dynamic, forward-thinking stance is essential, moving beyond reactivity into the realm of anticipatory strategy.

Capitalizing on Seasonal Supplier Promotions

Seasonal discounts and promotions are not exclusive to the retail domain; they’re a vein of gold for the astute procurement specialist.

Engaging with these timely offers can lead to improved rates and terms, slashing costs and sowing the seeds for future collaborative supplier partnerships.

The Art of Strategic Stockpiling

The holiday season often coincides with operational downtimes.

Wise stockpiling is imperative to circumvent potential standstills. Yet, this is a balancing act—overstocking is as much a faux pas as understocking. Here, procurement technologies offer the analytical acumen needed to maintain equilibrium.

Ethical Procurement: A Seasonal Reflection

The reflective nature of the holidays provides an opportune moment for businesses to reassess their procurement ethos, emphasizing sustainability and ethical sourcing.

Adopting such practices not only aligns with a growing consumer conscience but also contributes positively to the global ecosystem.

Post-Holiday Procurement Post-Mortem

As the holiday glitter settles, the imperative to evaluate and adapt becomes evident. Procurement professionals are tasked with dissecting the season’s performance to refine future strategies. This ethos of continuous enhancement, powered by the data analytics of tools like SAP Ariba™, positions companies to consistently outpace the competition.

In essence, the autumn and holiday seasons are punctuated with both trials and triumphs for procurement.

By remaining nimble, embracing innovative technologies, and nurturing solid supplier relationships, businesses can transcend seasonal challenges, paving the way for a flourishing start to the New Year.

Nov 14

CFOs and Indirect Spend

By Procurement No Comments

Transforming Procurement: The Strategic Role of CFOs in Managing Indirect Spend

In the dynamic landscape of procurement, the role of Chief Financial Officers (CFOs) and Chief Procurement Officers (CPOs) has evolved significantly, especially in the realm of indirect procurement.

At PREMIKATI, we understand the intricacies of this evolution and its impact on businesses. This article delves into the collaborative efforts needed between CFOs and CPOs to harness control over indirect spending and explores who should drive robust management in this area.

The Shift in Procurement Dynamics

Traditionally, procurement functions have focused on direct materials – those essential for producing goods or delivering services. However, with the acceleration of digital transformation, the focus has shifted towards a more strategic approach to procurement.

This is particularly true for indirect procurement, encompassing areas like travel, logistics, IT, and maintenance. These categories, often comprising a significant portion of revenue, demand an innovative approach to unlock their hidden value.

Navigating Indirect Spend

Indirect spend, unlike direct spend, deals with the broader costs of operating a business. It requires a unique approach, one that involves changing behaviors across an organization. For CFOs and CPOs, the challenge lies in balancing immediate cost reductions with the potential for greater long-term savings through strategic procurement.

Despite its importance, indirect spend often receives less attention in the procurement strategy. This oversight can result in missed opportunities for cost savings and efficiency gains. As companies continue to navigate the post-pandemic landscape, optimizing indirect spend has become more crucial than ever.

Strategic Actions for Enhanced Indirect Procurement

To bring indirect procurement into sharper focus, CFOs and CPOs might consider:

  1. Separating Indirect from Direct Spend: Distinct handling of indirect suppliers can lead to more targeted cost control strategies.
  2. Leadership Over Indirect Spending: Placing a dedicated head of indirect procurement under the CFO can facilitate better oversight and strategic planning.
  3. Enhanced Relationships with Stakeholders: Building strong connections with non-procurement stakeholders can lead to more effective contract management and supplier relationships.
  4. Defining the CFO’s Role in Cost Reduction: CFOs should oversee the monitoring of contracts and compliance, ensuring cost savings are effectively captured and utilized.
  5. Leveraging Technology for Greater Visibility and Efficiency: Implementing technology solutions can streamline indirect spend management, enhancing compliance and reducing unnecessary expenditures.

The Road Ahead

As companies emerge from challenging times, the transformation of indirect procurement presents a new frontier for cost savings and efficiency.

This transition, however, requires careful management and alignment of goals between CFOs and CPOs.

By applying strategic insights and leveraging technology, companies can turn indirect procurement into a valuable asset, contributing significantly to the bottom line.

Aug 15

Premikati Reaches Inc. 5000

By Press No Comments

Premikati Inc. is pleased to announce its inclusion in the prestigious Inc. 5000 list of the fastest-growing companies in the United States for 2023.

INDIANAPOLIS, INDIANA, UNITED STATES, August 15, 2023/EINPresswire/ — Premikati, a beacon of innovation and a dominant force in procurement management consulting is elated to announce its inclusion in the Inc. 5000 list of the fastest-growing companies in the United States. This highly sought-after distinction places Premikati among a select echelon of forward-thinking organizations that are not only shaping business trends but also pioneering unexplored avenues within the industry.

Inc. 5000 Reward
The Inc. 5000 list represents companies that have driven rapid revenue growth while navigating inflationary pressure, the rising costs of capital, and seemingly intractable hiring challenges. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other household names gained exposure as honorees on the Inc. 5000 list. Companies are ranked according to their revenue growth rate over three years. To qualify for the 2023 Inc. 5000 list, companies must have been founded and generating revenue by March 31, 2019. They must be U.S.-based, privately held, for-profit, and independent as of December 31, 2022. This year’s Inc. 5000 companies have added 1,187,266 jobs to the economy over the past three years.

“Our place on the Inc. 5000 list is not just a testament to our growth but a validation of our commitment to relentless innovation and excellence,” affirmed Marisol Buchanan, CEO of Premikati. “We see this recognition as both an honor and a challenge to continue pushing the boundaries of procurement technology and client satisfaction.”

The Culture

Premikati, with its diverse team of procurement professionals and deep-rooted expertise in SAP Ariba™, has been at the forefront of technological advancements. By merging traditional procurement wisdom with modern technological tools, Premikati crafts solutions that transcend ordinary boundaries, ensuring client success.

In recent years, the company has not only demonstrated significant growth but has also unveiled groundbreaking innovations that reinforce Premikati’s status as a visionary leader in the industry. The inclusion in the Inc. 5000 list exemplifies the company’s unwavering focus on creative problem-solving, customer-centric approaches, and dedication to cultivating a culture of continuous innovation across a variety of industries, including Life Sciences, Consumer Products and Goods, High-Tech, Wholesale Distribution, Healthcare, as well as the Private Equity space.

“The future of our company is incredibly bright,” continued Marisol. “With a dedication to inventiveness and adaptability, we look forward to further enriching our portfolio of services, venturing into new markets, and maintaining our reputation as an industry trailblazer.”

About Premikati
Premikati is a leading procurement management consulting firm, specializing in entire procurement business and legal process outsourcing and implementing SAP Ariba and Icertis software. In Indianapolis, Indiana, Premikati’s commitment to innovation sets it apart, offering tailored solutions that marry the latest technological advancements with timeless business wisdom. Premikati paves the way for clients to achieve growth through efficiency and insight.

Jul 10

Procurement Contracts

By Procurement No Comments

Procurement contracts are more than mere pieces of paper requiring a signature; they are the bedrock of successful business transactions and play a vital role in procurement.

What is a Procurement Contract?

A procurement contract is an agreement between a buyer and a supplier to manage a project. This agreement obligates the supplier to provide the necessary materials and services at an agreed price, providing the foundation for successful project execution.

The Procurement Process: More Than Just Buying

The procurement process often starts with the buyer, who must determine whether a potential supplier can meet their needs. Through this process, the most suitable supplier for a project is selected, helping to minimize procurement fraud and misunderstandings down the line.

Why Are Procurement Contracts Important?

Procurement contracts are crucial to business transactions. They contain all negotiated terms and conditions, including payment details, a list of orders, delivery schedules, and correction measures. By fostering trust between the buyer and supplier, these contracts safeguard both parties from fraud and misrepresentation, ensuring smooth project management.

Advantages of Procurement Contracts

  1. Transparency: Procurement contracts establish transparency between the buyer and supplier, preventing deception and building a solid relationship. Full disclosure of prices and receipts strengthens the bond between both parties.
  2. Clarity: With everything stipulated in the contract, misunderstandings are minimized. Both the buyer and supplier understand their obligations, promoting cooperation and diligence in their performance.
  3. Legal Protection: Both parties are liable to perform their duties under the contract. Legal actions can be taken against a party that intends to defraud, providing safety in every business transaction.

Different Types of Procurement Contracts

  1. Fixed-price Contract: This is the most common type of contract used in business transactions. Regardless of any internal or external factors, the price set during the signing of the contract remains constant until the project ends.
  2. Cost-reimbursement Contracts: Here, the buyer agrees to pay the supplier for the direct and indirect costs of the project. The supplier only gets paid once the expenses have been validated, placing much of the risk on the supplier’s side.
  3. Time and Materials Contract: This type of contract reimburses the vendor for the materials and time spent on a project. It is most commonly used on projects that are not easily quantifiable.

With the rise of technology, procurement processes are becoming increasingly streamlined and data-driven, leading to optimized spending and reduced risk.

Tools like Icertis and SAP Ariba’s Contract Management Software are revolutionizing this space by providing contract intelligence and services that drive compliance, minimize risk, and maximize business impact.

In an ever-evolving business landscape, understanding and leveraging the power of procurement contracts is a vital strategy for any organization, particularly for finance and procurement executives in the midmarket and large enterprise space.

 

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Jun 19

Unlocking Value through Procurement in Private Equity

By Private Equity No Comments

The era of Private Equity is upon us, and it is redefining traditional business paradigms.

In 2022, the private equity industry saw a record-breaking $1.5 trillion in dry powder, demonstrating the escalating growth of PE firms worldwide.

Today, these firms are not only focused on financial restructuring but are also keenly optimizing business processes to unleash untapped value – among these processes, Procurement stands out as an area ripe for reinvigoration and efficiency.

The Procurement Dilemma

The procurement process, fundamental to all businesses, is often riddled with inefficiencies and bottlenecks.

From long procurement cycles and lack of spending visibility to poor supplier management, these challenges translate into lost value and opportunities. Gartner reports that businesses, on average, can save up to 20% of their total spending by optimizing procurement.

Imagine the fiscal impact and competitive edge that such savings could bring!

Private Equity: The New Catalyst, Procurement

Given these potential savings, it’s no surprise PE firms have turned their gaze toward procurement. They are uniquely positioned to drive changes by leveraging their investment and operational expertise. However, this transformation isn’t without its hurdles. It requires deep knowledge of markets, suppliers, and commodity prices. Coupled with potential resistance to change within the portfolio companies and the need to manage compliance and risk, the road to procurement optimization can be winding.

Unleashing the Power of Procurement in Private Equity

Despite these challenges, the benefits of integrating Private Equity into Procurement are multi-fold:

Cost Savings

The most apparent benefit is cost savings.

By streamlining procurement processes and optimizing supplier relationships, PE firms can drive significant cost savings. These savings can directly impact the profitability of their portfolio companies.

For example, a study by The Hackett Group revealed that world-class procurement organizations operate at 22% lower labor costs than their peers.

Enhanced Efficiency

PE firms can streamline procurement processes, reduce procurement cycles, and enhance overall operational efficiency.

McKinsey & Company highlights that digitizing supply-chain operations can reduce errors by up to 50% and administrative costs by up to 80%.

Risk Mitigation

An optimized procurement process can better manage supplier risks. This mitigation ensures continuity of supply and reduces the potential impact of supply chain disruptions.

As reported by Deloitte, 85% of global supply chains experienced at least one disruption in the past 12 months, underlining the importance of effective risk management.

Value Creation

Ultimately, by addressing procurement-related challenges, PE firms create additional value in their portfolio companies.

Research by McKinsey suggests that top-quartile PE firms generate up to 30% more EBITDA growth in their portfolio companies compared to other PE firms.

A Future Powered by Procurement in PE

The integration of Procurement in Private Equity is a paradigm shift, but a change that is rife with value. As companies look to stay competitive in an increasingly digital and globalized world, the need for cost-efficient, streamlined, and risk-averse procurement processes is paramount.

In the ever-evolving landscape of global business, it is the enterprises that adapt, innovate, and invest in efficient processes that will lead the pack – and with Procurement in Private Equity, that lead might just become insurmountable.

“Investing in efficiency today is investing in success tomorrow.”

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Jun 14
procurement managed services for PE

The Undeniable Value of Procurement Managed Services for Portfolio Performance

By Private Equity No Comments

Operating partners always search for innovative strategies to optimize portfolio companies’ performance.

Procurement, an often-overlooked area, presents a remarkable opportunity for cost optimization and improved operational efficiency.

The key lies in procurement-managed services.

The Game-Changing Nature of Managed Services

Managed services bring a fresh, data-driven strategy to procurement, transforming this traditionally administrative function into a powerful value driver. Backed by cutting-edge analytics and deep industry expertise, these services rapidly become a game-changer in procurement.

The Power of Intelligent Buying and Smart Spending

By shifting to managed services, one can realize an immediate 8% to 12% reduction in purchase costs. This is enabled by sophisticated analytics and a network of experienced procurement professionals who provide comprehensive support.

The approach is all about intelligent buying and wise spending, delivering sustainable savings across all spending categories.

Leveraging Volume Aggregation and Expert Insight

Managed services offer the advantage of volume aggregation and expert insight.

By aggregating demands from multiple clients, they can negotiate better prices, particularly in low-spend areas. Moreover, their scale provides deep expertise and real-time market insights across various categories, allowing us to learn from industry leaders and enhance our capabilities.

The Significant Cost Savings of Strategic Procurement Activities

The potential cost savings from strategic procurement activities are significant.

Consider this: one company slashed its operating costs by 19% by outsourcing its entire purchasing function. Another firm captured average savings of almost a third in its first three significant categories tackled following establishing a new central purchasing function.

The Need for a Well-Informed Perspective in Transitioning

Yet, like any strategic decision, moving to procurement-managed services must be made with a well-informed perspective. While effective for transactional activities, labor arbitrage can limit savings in strategic buying activities that require close internal cooperation.

Capturing the benefits of demand and specification management, which can account for 40 to 50 percent of total savings, also requires close collaboration with other business functions, which can be challenging for an outsourced provider.

The Transformational Impact of Procurement Managed Services

Procurement-managed services represent a significant opportunity for operating partners.

Leveraging advanced analytics, expert knowledge, and industry best practices can transform the procurement function of your portfolio companies into a strategic asset.

As always, it’s essential to approach this with a clear understanding of your portfolio companies’ unique needs and capabilities to ensure a successful transition.

As an SAP Ariba™ Gold Partner, Premikati is a leading services provider for all facets of Ariba™ and procurement in general.  To contact our team, click here.

Jun 05

The Power of Automation: Unleashing Efficiency with SAP Ariba Commerce Automation

By Procurement No Comments

Businesses today are realizing the urgent need for procurement and spend management innovation. Key decision-makers, particularly those in finance and procurement, seek solutions to streamline processes, boost efficiency, and improve organizational visibility. This is where SAP Ariba Commerce Automation enters the scene. 

 What is SAP Ariba Commerce Automation? 

SAP Ariba Commerce Automation is a solution designed to supercharge your procurement processes through powerful automation. Its primary goal is to enhance operational efficiency and ensure a steady supply chain by improving spend visibility and fostering efficient collaboration with suppliers. 

It’s a solution recognized for its innovation and effectiveness, with SAP being recognized as a leader in the 2022 Gartner Magic Quadrant for Procure-to-Pay (P2P) suites for the seventh consecutive time. 

Key Features: A Deep Dive 

SAP Ariba Commerce Automation comes with a suite of features designed to optimize procurement operations: 

  • Regulatory and Business Process Compliance: The solution ensures digital matching of invoices to POs and contracts, thus enabling compliance with regulatory requirements through e-invoicing. Transactions are validated based on configured business rules, reducing manual intervention and exceptions. 
  • Automated Procurement Workflows: The solution automates manual processes, freeing up workforce capacity, decreasing operating costs, and increasing productivity. It also enables digital delivery of POs to suppliers across a business network. 
  • Supplier Portal: The portal allows suppliers to flip a received PO on the network into an invoice, eliminating data entry and other errors. It also gives suppliers a view into invoice status updates, reducing inquiries. 
  • Invoice Status Portal and Transaction Visibility: This feature provides visibility into orders and invoices with a holistic view of spend. It allows suppliers to configure notifications to receive emails when their invoice status changes, promoting adoption for long-tail suppliers through self-service updates and invoice visibility. 

Impressive Benefits 

The benefits of SAP Ariba Commerce Automation are as significant as its features. These benefits include: 

  • Improved Procurement Compliance: The solution supports business process compliance with highly configurable business rules on the network. 
  • Automation of Spend Management Processes: The solution enhances productivity, lowers operating costs, and frees up people’s capacity by automating paper-based and manual processes. 
  • Increased Transparency of Business Spending: The solution provides a holistic view of organizational spending with greater visibility into orders and invoices in one platform. 

Recent Innovations and Future Outlook 

SAP is not resting on its laurels. Recent innovations and planned updates include: 

  1. Guided Buying: The next evolution in guided buying is here. The new capabilities improve the buying experience and leverage AI, intelligent recommendations, and machine learning. This creates a holistic view of what the buyer is purchasing and how it aligns with their organization’s environmental, social, and governance (ESG) goals. 
  1. SAP Central Procurement: The latest release of SAP Central Procurement addresses the challenges associated with centralizing procurement. It delivers the benefits of a uniform, centralized procurement system across all direct and indirect categories — without reworking individual solutions spread across the organization. 
  1. SAP Category Management: A new category management solution, SAP Category Management, is set to roll out this year. It will provide actionable market intelligence and category insights, empowering category managers and procurement professionals to make strategic category decisions. 

 

Statistics Highlighting the Importance of Procurement Optimization 

To underscore the significance of these advancements, let’s consider some compelling statistics: 

  1. Companies that excel at procurement have 20% lower costs, less supply chain disruption, and up to 55% fewer supplier defects (Source: The Hackett Group).
  2. High-performing procurement organizations operate at up to 21% lower labor costs (Source: The Hackett Group).
  3. According to Gartner, by 2023, organizations that have adopted AI in their supply chain management strategy will reduce errors by up to 50%. 

 

From the rollout of SAP Category Management to the enhanced supplier management and the integration of AI and machine learning, SAP is poised to redefine procurement and supply chain management. 

As procurement professionals, we must stay abreast of these developments, leverage these innovative solutions, and drive strategic value and business outcomes in our organizations. 

May 25

Navigating the Supplier Landscape

By Procurement No Comments

Unleashing the Power of SAP Ariba Solutions for Optimized Procurement and Risk Management

 

Supplier management has become a critical aspect of business operations for procurement and supply chain executives in interdependent businesses and complex supply chains.

In fact, according to a report by Ponemon Institute, 53% of organizations have experienced at least one data breach caused by a third party in the past two years. This statistic alone underscores the urgent need for robust supplier lifecycle and risk management.

Fortunately, innovative solutions are available to help professionals navigate this challenging landscape. For instance, SAP Ariba’s Supplier Lifecycle and Performance solution offers various benefits that help streamline supplier management and optimize procurement processes.

Enhancing Supplier Relationships

A strategic procurement process starts with strong supplier relationships. SAP Ariba solutions provide a unified and comprehensive view of supplier information, which helps businesses work effectively with suppliers and withstand disruptions. This increased visibility can drive spend to preferred suppliers, allowing businesses to manage suppliers based on specific parameters and integrate this information with other SAP Ariba solutions.

Maximizing Savings

SAP Ariba’s solutions can also help eliminate savings leakage. With enhanced visibility and control, businesses can ensure employees buy the right products at the right price, allowing negotiated savings to reach the bottom line.

Simplifying Risk Management

Understanding supplier risk is essential in today’s complex business landscape. 2021 data breaches increased by 17% from the previous year, and it’s predicted that supply chain attacks would quadruple in 2021 over the number of 2020 attacks. SAP Ariba’s Supplier Risk solution simplifies supplier risk management by providing actionable insight into high-risk suppliers and focused risk alerts.

Gaining Deeper Insight

With SAP Ariba Supplier Risk, businesses can act fast with insight into the location of at-risk suppliers, the problems they may face, and the orders and shipments impacted by risk. This solution also allows for intelligent control assessments based on suppliers’ inherent risk, enabling businesses to identify suppliers of greatest concern.

Driving Compliance with Embedded Risk Management

Embedding risk management in the procurement process can significantly improve compliance. SAP Ariba Supplier Risk helps reduce the assessment cycle time from months to weeks, improving compliance through third-party risk assessments for each supplier engagement.

Delivering Business, Environmental, and Social Impact

Businesses today are increasingly held accountable for their operations’ social and environmental impact. With SAP Ariba Supplier Risk, companies can find the causes of risk to enable compliance controls that make a difference and provide responsible plans for supplier selection, onboarding, and contracting.

Proactively Mitigating Risks

SAP Ariba Supplier Risk enables businesses to generate and execute issue management and action plans to mitigate risks proactively. This solution also connects to the source-to-pay process to improve compliance.

Receiving Personalized Risk Alerts

The SAP Ariba Supplier Risk solution automatically tracks more than 200 risk incidents, helping businesses proactively monitor financial, operational, environmental, social, regulatory, and legal risks.

In an era where 65% of businesses find it hard to manage cybersecurity risks associated with third parties and 74% believe that third-party vendor selection overlooks potential key risks, SAP Ariba Supplier Risk removes the challenge from supplier risk management. It empowers businesses to work with suppliers that can keep business moving with less risk, monitoring aspects of supplier lifecycle management that may not have been considered before.

The Future of Supplier Management

As businesses continue to evolve, so does the complexity of their supplier networks. An estimated 60% of organizations work with over 1,000 third parties, which is growing as business systems become more complex. Additionally, 71% of businesses expect to become more reliant on third parties in the next two years.

Given these trends, it’s clear that effective supplier lifecycle and risk management are more critical than ever. Advanced solutions like SAP Ariba’s Supplier Lifecycle and Performance and Supplier Risk solutions can help businesses navigate this increasingly complex landscape, enabling them to make better buying decisions, maximize savings, scale compliance, simplify risk management, and more.

With robust supplier management solutions, businesses can turn procurement and supplier management from a challenging task into a strategic advantage. By harnessing the power of SAP Ariba solutions, businesses can mitigate risks and unlock opportunities for growth and innovation. It’s time to reshape the procurement landscape and transform how we manage supplier relationships.

 

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May 16

Unleashing the Power of AP Automation: A Strategic Move Towards Efficiency and Profitability

By Procurement No Comments

In an era where digital transformation drives sustainable business growth, one area that remains ripe for disruption is Accounts Payable (AP). AP automation is no longer just an option – it’s a business necessity that yields considerable strategic advantages, particularly for mid-market companies. This post aims to provide an in-depth understanding of the myriad benefits of AP automation to executives committed to fostering operational excellence, reducing costs, and enhancing cash flow management.

 

The AP Challenge: A Time and Resource Intensive Process

AP processes often contain manual data entry, paper invoices, and lengthy approval cycles. These processes are time-consuming and prone to human error, resulting in late payments, missed discounts, and increased operational costs. The lack of real-time visibility into AP data often leads to suboptimal decision-making, hampering growth and profitability.

The AP Automation Advantage: Transforming the AP Landscape

AP automation technology disrupts this status quo, offering a more innovative, efficient, and cost-effective way to manage AP processes.

Let’s delve into the specific benefits:

  • Time Savings: AP automation drastically reduces the time to process an invoice, leading to faster approvals and payments. This increased efficiency frees up valuable staff time that can be better utilized for strategic tasks, such as analyzing spending data or improving supplier relationships.
  • Reduced Operational Costs: Automating AP processes reduces the need for manual intervention, thereby minimizing the scope for human errors and the costs associated with rectifying them. Moreover, it can also decrease storage and postage costs associated with paper invoices. Calculate your potential savings here using SAP’s Buying and Invoicing Value Calculator.
  • Enhanced Cash Flow Management: With real-time visibility into outstanding invoices and payment dates, AP automation allows companies to optimize their cash flow. Companies can take advantage of early payment discounts and avoid late payment penalties, thereby improving their bottom line.
  • Decreased Rogue Spend: AP automation controls maverick spending by enforcing corporate policies and approval workflows. It also improves spend visibility, enabling companies to identify and mitigate rogue expenditures more effectively.
  • Improved Supplier Relationships: Timely payments and transparent communication foster healthier supplier relationships. This enhances supply chain efficiency and opens up opportunities for negotiation and collaboration.

The Powerhouse Duo: SAP Ariba Buying and Invoicing and Premikati

While the benefits of AP automation are clear, the choice of software and its implementation process is crucial.

SAP Ariba Buying and Invoicing is a robust solution offering comprehensive AP automation capabilities. It streamlines end-to-end procure-to-pay processes, enhances visibility into company-wide spending, and drives compliance and control across the invoice management process.

Yet, the success of any AP automation initiative is about more than just the software. It’s about how effectively the software is implemented and integrated with your existing systems and processes. This is where Premikati offers rapid implementation and deployment services that ensure a smooth and efficient transition to automated AP processes.

Premikati’s expertise in SAP Ariba implementation reduces the time-to-value, allowing companies to experience the benefits of AP automation sooner rather than later. Their robust training and support ensure that your team is equipped to leverage the software’s full potential.

AP automation is a transformative strategy that can significantly improve your business’s operational efficiency, financial health, and competitive edge. With SAP Ariba Buying and Invoicing and Premikati’s deployment services, your business is well-positioned to navigate the AP automation journey successfully.

Connect with us today to talk to our team.

Feb 16
Supply Chain Management SAP Ariba Premikati

Tips for Successful Supply Chain Management

By Procurement No Comments

Sourcing and supply chain management go hand in hand.

Successful supply chain management is the backbone behind most successful businesses. If we had any doubt, the last three years made it clear.

Here are four pointers to help you ensure the success of your supply chain and how you can manage your relationships for success:

1. Leverage New Technologies

Today’s supply chain industry is brimming with new technologies and it has never been easier to get the most out of your supply chain using tools such as:

I. Artificial intelligence and predictive analytics to aid in inventory forecasting.

II. Procurement applications such as SAP Ariba SLP.  This aids in quality control, supplier scorecards, supplier management and cost savings during procurement.

III. Digital supply chain twins, which improve transparency and decision-making in the supply chain.

2. Constant Evaluation of Sourcing Strategies and Suppliers

The focal point of any supply chain management is sourcing. If done incorrectly, it could spell the end of many supply chains.

Take, for example, this Gartner study.

74% of companies that constantly reviewed and developed their sourcing strategies increased their productivity and savings significantly.

It really is a no-brainer.

To get the most out of your sourcing, figure out which strategies work best for your supply chain and focus on them. You should concentrate on the suppliers’ credibility, capacity, and shared goals.

3. Employee Development

Employees, like other aspects of the business, make significant contributions to supply chain management. In a nutshell, they are the foundation of any organization.

It only makes sense to invest in their advancement. Especially if you want your supply chain management to succeed.

When it comes to training their employees, most businesses are afraid. They are concerned that they will leave and join their competitors. It’s understandable.

But wouldn’t it be more dangerous not to train them? And then watch them wreak havoc on the supply chain and overall business objectives?

Employee competencies are improved through training and development.

4. Enjoy the Competition

Competition is the backbone of any thriving industry. To see success in your supply chain, you must learn to enjoy the competition. 

 Why? The simple answer is competition breeds innovation. And innovation is the secret weapon of any successful business. 

 With competition, you can isolate a competitive edge, allowing you to better cater to your customer’s needs.  

 It also has benefits like improved customer service and constant business development.  

 

What are the key issues you encounter in your supply chain organization?

 

For procurement and supply chain management consultations from the global leaders in Ariba solutions please visit us at www.premikati.com.

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