In the manufacturing industry, paperwork is a constant burden. The average employee in a manufacturing plant will handle upwards of 100 pieces of paperwork every single day. For office based workers, a large amount of that comes in the raising and receiving of invoices and purchase orders, which all need to be processed and filed in the correct places. This adds up to a lot of time spent on paperwork, when there are much more important things to be getting on with. That’s why Tipac work closely with the manufacturing industry to revolutionise their paperwork processes, with a particular emphasis on invoice processing.
What Can Automated Invoice Processing Do For The Manufacturing Industry?
According to Forrester Research, accounts payable has an incredibly high cost per transaction rate – around £9 per transaction in some organisations. This is largely because 97% of manufacturing businesses are still processing their invoices manually, with at least 2% of those containing an error of some sort. Automating the invoice processing procedure provides a huge benefit in terms of both cost savings and improved productivity. Automated invoice processing solutions like ours help you transform your existing process to be more efficient, secure and cost effective, without significantly changing the way your employees and manufacturing processes work. Simply eliminating manual data entry and introducing automated workflows will speed up your invoice processing, pave the way for early payment discounts on materials and make late payment fees a thing of the past (for you at least, we can’t speak for your customers). This will allow you to build up a rapport with your vendors and negotiate favourable prices, improving your profit margins and saving you money at the bottom line. Combine this with minimal staff involvement and your manufacturing business could save up to 80% of your invoice processing costs. But the benefits go beyond preventing issues with vendors.
Most crucially, automation frees up your staff from monotonous and time consuming manual data entry tasks and allows them to work on other business critical activities, providing a higher return on your investment. At the same time your invoicing processes will now be well documented, reliable and repeatable, significantly improving the quality and ease of auditing and reporting procedures. Your invoices will all be stored electronically making it simple to create a disaster recovery and back-up plan so nothing is ever lost, and the digitisation of this department alone could drastically cut down the copying and printing footprint of the organisation. For an industry so embroiled in paperwork, automating the invoice processing procedure had some essential benefits.
Key Benefits For Manufacturing
Accounts payable may not be at the top of your list of candidates for process improvement right now, but it should be. Whenever there is manual document processing of any level, errors, misinformation and inefficiency will always creep in. This effect is magnified when you are in an industry such as manufacturing, where the sheer volume of paperwork is mind blowing. Instead, here are just a few of the benefits your manufacturing firm would see by automating invoice processing:
- Eliminate manual steps by automatically syncing information with ERP and accounting software.
- Increase throughput, accuracy and accessibility while reducing errors, manual rekeying and handling.
- Achieve faster insight into supplier costs through shorter cycle times.
- Easily check a new employees status sheet to flag missing documents.
- Accelerate approval and processing by scanning and indexing paper invoices into a digital workflow.
All of that sounds well and good, but it’s nothing compared to seeing these powerful solutions in action. That’s why at Tipac we are offering free demonstrations of our invoice automation solutions to any manufacturing firms across the UK. So if you’re interested in saving time, money and improving the efficiency of your manufacturing business, help is just a phone call away. For more information, get in touch with the Tipac team today.