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State of Procurement: These 5 Trends Are Redefining the Procurement Landscape
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State of Procurement: These 5 Trends Are Redefining the Procurement Landscape

For a long time, procurement had been reduced to a mere buying function. However, the traditional perception of procurement departments is no longer in tune with reality. Procurement is more than just buying – its functions have expanded to cover more than just purchase transactions, cost optimisation and data processing. This blog article delves into the current state of procurement by spotlighting five pivotal trends that are redefining the landscape.

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Challenges Drive Transformation in Procurement

The state of procurement is in flux. The procurement landscape is undergoing a significant transformation. Globalisation, various crises like the Corona pandemic, inflation and wars, the digital transformation, and a renewed emphasis on sustainability and corporate responsibility shape the worldwide business landscape. As businesses continue to evolve in response to these dynamic factors, the role of procurement within organisations has equally shifted. In this article, we will outline the current state of procurement, focusing on the pivotal developments and trends that are reshaping the sector. From the evolving role of procurement professionals to the emergence of Environmental, Social and Governance (ESG) considerations, we will examine the multifaceted nature of modern procurement. 

1. Evolving Role of Procurement Professionals:  

The procurement profession is transforming significantly. The traditional focus on cost optimisation and management shifts to more strategic roles including risk management and decision-making in the face of global volatility, ambiguity, and complexity. Traditional roles like data entry clerks and bookkeepers are seeing a decline, while the demand for data analysts and automation specialists is on the rise.This trend is underlined by the need for procurement professionals to become business problem solvers and critical thinkers who can navigate a rapidly changing business and global environment. As a result, the most important skills fall into the categories of problem-solving, self-management as well as technology use.

 Problem-solving:
- Complex problem solving
- Critical and analytical thinking
- Creativity and initiative
- Innovation
Self-management:
- Active learning
- Learning strategies
- Flexibility
- Resilience
Technology use:
- Affinity for IT and technology
- Technology monitoring and control
2. Talent Development and Management: 

As the role of procurement professionals evolves, it’s imperative to attract, train, develop and retain the right talent. The future of procurement lies in next-generation transformative talent, with a particular focus on digital expertise. The rapid growth of digital procurement necessitates a team with strong digital skills, calling for continuous learning and adaptation to new ways of working. As such, talent acquisition, management and development are becoming increasingly complex and critical functions within procurement. 

3. Harnessing the Power of Data:

The procurement sector is undergoing a technological renaissance. Through advancements in technology, the power of data comes increasingly into the focus of procurement. Data is the backbone of any successful procurement process. However, collecting data is not enough to leverage the power of data and to optimise procurement processes. Raw data needs to be transformed into actionable intelligence with the help of digital automation tools to provide transparency into each stage of the P2P process and to empower procurement professionals to have insights into supplier performance results, make more informed decisions, improve cost efficiency and increase overall productivity. The most important benefits of a data-driven procurement strategy are:
- Cost savings
- Supply chain transparency
- Increased operational efficiency
- Safer risk and compliance management
- Reliable record keeping
4. ESG and Sustainability:

There’s a growing emphasis on Environmental, Social, and Governance (ESG) factors within procurement. CPOs are increasingly expected to act as stewards for the planet, people, and resources, reflecting a larger trend towards sustainable and responsible business practices. ESG in procurement is a set of guidelines or principles to assist businesses in assessing their sustainability and ethical impact regarding their procurement practices. By embracing ethical procurement practices such as fair trade, preventing corruption, and promoting diversity and inclusion in the supply chain, procurement not only minimises risks but also enhances the organisation’s reputation and stakeholder relations. By embracing sustainable procurement practices, organisations can promote resource efficiency and waste reduction. Integrating ESG considerations into the procurement process thus means that organisations can foster sustainability, equality and increase transparency in their supply chain. ESG considerations are predicted to dominate procurement conversations in 2023 and beyond. 

5. Strengthening Supplier Relationships: 

Relationship management, especially with suppliers, is gaining prominence in procurement. The ability to closely collaborate with suppliers, understand their performance, and align them with business needs is critical. This evolving landscape necessitates a re-evaluation of traditional supplier relationships, encouraging the formation of true partnerships that aim for long-term business success. Moreover, with tools like ensun which are leveraging technological advancements like AI, companies can bring their supplier sourcing to the next level.

State of Procurement: From Cost Management to Strategic Business Partner

The five trends in procurement outlined in this article represent the transformative state of procurement and its evolving role in a fast-paced and complex business world. The requirements for procurement regarding ESG factors underscore procurement’s central role and impact in the global business landscape. Through advancements in technology, potential of data and ongoing digitisation, procurement professionals’ roles develop and change along with the need to attract and manage the right next-generation talents. In summary, the role of procurement is transitioning from merely focusing on cost management and transactions to adopting a more strategic, collaborative, and data-driven approach, facilitated by enduring and robust partnerships. As we move forward, embracing these trends will not just be an option but a necessity for procurement professionals seeking to thrive in a rapidly evolving landscape.

Read in our next blog article how automation technology empowers the future of procurement.

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August 30, 2023
Intelligent Document Processing: Unleashing the Potential of Orchestration in B2B Document Processing

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Intelligent Document Processing: Unleashing the Potential of Orchestration in B2B Document Processing

In the dynamic world of business-to-business (B2B) operations, companies continuously search for strategies to streamline processes and augment efficiency. A cornerstone of these strategies is the automation of document processing, the operational backbone of any enterprise. Traditional automation has offered some advantages, but it also presents inherent limitations. The solution? A transformative approach known as orchestration.

Orchestration elevates the capabilities of basic automation, providing an integrated, efficient, and effective solution that significantly enhances the document processing workflow. This article will delve into the intricacies of orchestration, differentiate it from automation, and introduce the Netfira Platform.

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Orchestration and Intelligent Document Processing

Intelligent Document Processing (IDP) uses advanced technology to digitise and automate unstructured data from various B2B documents. Combining artificial intelligence (AI), machine learning (ML) and natural language processing, IDP mimics human abilities for identifying, contextualising and processing documents. IDP uses AI, ML and human-in-the-loop automation to convert unstructured data into structured and actionable data. Relying on orchestration, intelligent document processing takes automation to the next level.

The Constraints of Simple Automation in Document Processing

Automation has revolutionised the business world, particularly in document processing. By automating repetitive tasks, companies have managed to reduce manual labour significantly, thereby increasing speed and productivity. However, automation alone has its drawbacks. While it’s adept at handling individual tasks, it can stumble when dealing with more complex workflows that require coordination and interconnection of different tasks. Automation often falls short of providing a holistic solution, leading to inefficiencies and errors.

For instance, consider a situation where data needs to be extracted from various documents, processed, and then matched with corresponding details in another set of documents. Automation can handle these tasks individually, but what happens when there’s a discrepancy between the documents? Automation lacks the ability to make judgments or handle exceptions, resulting in potential errors and inefficiencies.

Orchestration: A Symphony of Automated Tasks

Orchestration steps in to address these challenges. It goes beyond simple automation, coordinating a multitude of automated tasks into a seamless, unified workflow. It’s like a conductor leading an orchestra, ensuring every instrument plays its part at the right time to create a harmonious melody.

In the context of B2B document processing, orchestration allows businesses to manage complex workflows efficiently, handling exceptions and adapting to different business rules and logic. This approach not only boosts productivity but also ensures data accuracy and integrity. By coordinating various tasks and handling exceptions efficiently, orchestration improves overall business performance.

The Netfira Platform: Leading the Way in Document Orchestration

The Netfira Platform exemplifies the power of orchestration in B2B document processing. The software solution transcends the limitations of simple automation by orchestrating document processing workflows. Consequently, the Netfira Platform is a complete document processing solution automating the entire document processing workflow.

With the Netfira Platform, businesses can automatically extract data from any document type or format, ensuring flexibility and versatility. The extracted data is processed using customisable workflows, based on the unique logic and rules of the business. Netfira’s powerful algorithms can match and validate this data against other relevant documents or datasets, ensuring its accuracy and reliability.

But where the Netfira Platform truly shines is in its exception handling. The Platform compares data from different B2B documents, such as purchase orders with order confirmations. In cases of discrepancies or deviations, the system flags these exceptions and presents them in a user-friendly interface, allowing users to resolve them effectively. This exceptional capability embodies the essence of orchestration, managing tasks as an integrated whole rather than in isolation.

Moreover, the processed, structured data can be seamlessly exported into any downstream system, facilitating integration and a smooth data flow. This capability not only enhances the efficiency of the document processing workflow but also provides valuable insights for more informed, data-driven decision-making.

Conclusion: The Dawn of a New Era in B2B Document Processing

Orchestration is setting the stage for a paradigm shift in B2B document processing. By orchestrating their document processing workflows, businesses can move beyond the constraints of mere automation and benefit from complete automation. The result? Unparalleled efficiency, reduced errors, and enhanced productivity.

The Netfira Platform is at the forefront of this transformation, redefining document processing through its innovative application of orchestration. Businesses that embrace this change are sure to witness remarkable improvements in their document processing workflows, propelling them toward success in this new era of B2B operations.

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August 10, 2023
Procurement Whitepaper: Unlocking Efficiency in B2B Document Processing

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Beyond automation: Unlocking Efficiency in B2B Document Processing

In an increasingly interconnected and fast-paced business environment, the ability to process and manage a plethora of documents efficiently is not just a desirable trait but a critical necessity. From invoices and purchase orders to contracts and delivery notes, the sheer volume and diversity of documents that businesses handle are staggering. This whitepaper aims to provide insights into the challenges that businesses face in document processing, especially in a B2B context, and how emerging technologies can transform this critical function. As you delve into this paper, ask yourself: How is my business tackling the inherent complexities of document processing? Are traditional automation solutions meeting the evolving demands? What can Intelligent Document Processing offer that can improve my operations?

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July 13, 2023
Embracing the Inevitable: Errors, Edge Cases, and the Role of HITL Automation in Automated Document Processing

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Embracing the Inevitable: Errors, Edge Cases, and the Role of HITL Automation in Automated Document Processing

In the thrilling world of automated document processing, the question isn’t if errors and edge cases will arise, but rather when and how often. That’s where the real power of human-in-the-loop (HITL) automation shines. Building on our previous post, “The unseen power of human-in-the-loop automation for automated document processing,” we will delve deeper into the pivotal role of HITL in tackling these inevitable challenges. HITL automation elegantly marries human expertise with cutting-edge automation, forming a robust shield against the day-to-day complexities and variabilities encountered in document processing.

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Understanding Errors and Edge Cases in Document Processing 

In the realm of document processing, errors and edge cases are commonplace due to the intrinsic complexity and variability of the documents involved. Businesses grapple with processing an assortment of documents daily, ranging from invoices and customer orders to quotes and purchase orders.

Among these, unstructured documents present a unique challenge. In contrast to structured documents such as invoices, where information neatly aligns with specific columns and positions, unstructured documents can be unpredictably diverse. For example, purchase order confirmations are complex unstructured documents containing a lot of critical information that lack a standard format. Suppliers have the liberty to confirm specific components as they see fit, resulting in varied structures across different order confirmations. This diversity often causes discrepancies when automatically extracting data, creating a gap between the order confirmation and the actual purchase order. Such errors and edge cases can put a dent in the efficiency and accuracy of document processing systems.

The Role of Human-in-the-Loop in Handling Errors and Edge Cases 

In the domain of document processing, encountering errors and edge cases is an expected part of the process. Despite this, the quest for maximising the efficiency and accuracy of automation tools calls for the crucial role of human-in-the-loop automation. Automation systems incorporating the HITL approach are designed to not only acknowledge but effectively manage errors and edge cases. This enables an uninterrupted and efficient workflow within automation systems. When extracting and processing data, HITL systems can identify and flag errors and edge cases for human review. By reviewing and correcting these issues, human experts provide valuable feedback to the system, enabling it to learn and improve.

The Netfira Platform: A Human-in-the-Loop Document Automation Solution

Imagine a dynamic platform that harnesses the power of artificial intelligence while still valuing the irreplaceable human touch. That’s precisely what the Netfira Platform delivers—a sophisticated human-in-the-loop document automation solution that breathes life into the Purchase-to-Pay (P2P) and Order-to-Cash (O2C) processes.

In the training phase of the AI model, HITL teaches artificial intelligence through making decisions and allows the technology to gain experience through access to data and human feedback. Every document processed refines the AI’s understanding and improves its capabilities incrementally.

The Platform also features intelligent business logic, reducing exception rates, and ensuring accuracy in document processing. Users can set their own parameters, allowing the system to process as many documents as possible fully automatically. Extracted data can be enriched with additional data, such as currency, which is important for processing but is not included in the document. Moreover, users can set tolerances for shipping dates, quantity and more to allow the system to process pre-defined deviations between documents. Thus, building on human-in-the-loop automation, the Netfira Platform achieves the highest degree of automation when extracting, comparing and validating data.

Exception Management with Netfira’s HITL Document Automation Solution

As mistakes, anomalies and exceptions in document processing are inevitable, the Netfira Platform is designed to handle exceptions in document processing quickly and efficiently. If the Platform cannot process deviations through set tolerances or data enrichment rules, exceptions are identified and flagged by the system. The Platform directs the user to the parameters where human input is needed. In an easy-to-use interface, the exceptions are displayed in one place. Users can filter, sort and resolve exceptions quickly. Moreover, the system supports the user as it provides intelligent suggestions and guidance on how to manage each exception. By reviewing the exception and giving feedback, the user gives the HITL automation tool valuable information that helps it improve. As the Platform only flags exceptions which require human input, users only need to focus on tasks where their expertise is truly needed.

Errors and Edge Cases: Efficient Exception Handling with HITL Automation

Because errors and edge cases in automated document processing can never be ruled out completely, it is important to handle them efficiently. Human-in-the-loop automation is pivotal in managing deviations and anomalies in B2B document processing, given that its principle of incorporating human feedback inherently enables the system to enhance its accuracy over time. Through the collaborative efforts of humans and machines, users can proficiently manage inevitable errors and edge cases. The Netfira Platform is specifically designed to offer robust, reliable, and efficient exception management. It ensures quick and straightforward resolution of exceptions, thereby preventing any interruption in document automation workflows. As human experts handle exceptions, their invaluable feedback aids the AI-driven system in achieving unparalleled accuracy and efficiency.

Conclusion

In the grand scheme of automated document processing, errors and edge cases are not hindrances but opportunities—opportunities to fine-tune the process, to learn, and to grow. Human-in-the-loop automation stands at the forefront of this evolution, transforming potential obstacles into stepping stones towards higher accuracy and efficiency. The Netfira Platform, with its efficient exception management, embodies this philosophy, combining the precision of AI with the adaptability of human expertise. As we embrace these inevitable challenges, we’re not just resolving errors—we’re shaping the future of automated document processing.

Are you interested in finding out more about exception management with the Netfira Platform?

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July 6, 2023
The unseen power of human-in-the-loop automation for automated document processing  

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The unseen power of human-in-the-loop automation for automated document processing   

Human-in-the-loop (HITL) automation is fast becoming a game-changer in the field of automated document processing. As we navigate the landscape of automation and artificial intelligence, it’s increasingly clear that human intuition remains invaluable. In this blog article, we‘ll delve into the essence of HITL automation, the significance of human feedback for artificial intelligence and why human-in-the-loop automation is crucial for processing documents in today’s business world.

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Riding the wave of automation 

Automation has redefined our workflows, transforming how we approach tasks in a broad spectrum of industries from manufacturing to healthcare. With its capability to perform repetitive tasks effortlessly, automation has introduced a new paradigm of efficiency and productivity. There are three primary types – basic, process, and intelligent automation. 

Basic automation, as exemplified by Robotic process automation (RPA), simplifies mundane tasks. Process automation caters to complex multi-step processes, integrating with multiple systems. The pinnacle of automation, intelligent automation, harnesses the power of artificial intelligence (AI) and machine learning (ML) for more advanced tasks. 

AI and automation: A powerful symbiosis 

Artificial intelligence, as defined by Britannica, equips digital computers or computer-controlled robots with intellectual processes mirroring human abilities like reasoning and learning from past experiences. This learning capability underpins the continuous enhancement of AI-driven automation tools,enabling them to make informed decisions based on data analysis from past encounters. 

One might think that businesses should embrace full automation to maximise efficiency and optimisation. However, reality paints a complex picture. Given the inherent limits to full automation, human-in-the-loop automation becomes the bridge to this gap. 

Understanding human-in-the-loop automation 

Human-in-the-loop (HITL) automation, or human-in-the-middle automation, encompasses automated systems that integrate human judgement. It uniquely combines the speed and accuracy of machines with human creativity and critical thinking. This blend of human intuition and machine capabilities yields the best worlds. 

Human-in-the-loop automation vs full automation

While full automation may seem appealing at first, it isn’t without drawbacks. The lack of human intervention can lead to issues such as reduced control, decreased accuracy, and limited feedback mechanisms. HITL automation synergises human and machine intelligence to address these challenges, especially in areas requiring high accuracy such as data extraction and processing. 

Artificial intelligence and human-in-the-loop: The importance of human feedback  

Artificial intelligence and automation, despite their advancements, still require human participation for optimal results. In the training phase of AI models, the concept of HITL plays a central role. The HITL approach enables AI to gain experience through constant access to data and refining human feedback, thus making AI models more accurate over time. The more data and situational variations the AI is exposed to, the more intelligent and capable it will get. 

Automated document processing in businesses 

Document processing is the activity of receiving a document, understanding the information and inputting that information into downstream systems. Document processing is necessary in most business operations but is critical in procurement, accounts payable and sales processes. B2B documents which need to be processed include order confirmations, quotes, customer orders, shipping notices and invoices and others. Processing documents and data manually takes a lot of time, requires human resources and is prone to errors and inaccuracies. Automation tools have contributed to improving the operational efficiency in document processing and optimising business processes. Through automated document processing, the data contained in these documents is not processed manually anymore but with the help of automation software.

The role of human-in-the-loop automation in document automation

Automated document processing is an area in which human-in-the-loop automation proves to be invaluable. Processing documents automatically involves tasks like data extraction, document classification, the interpretation of information, the comparison of data, the definition of tolerances and the handling of exceptions or deviations. All those tasks require critical thinking, interpretation skills and judgment. This is where HITL comes into play.

Human-in-the-loop automation in automated document processing enables humans to intervene in situations where a machine might falter, such as understanding deviations in a purchase order and to give input and feedback. In many cases, a human can insert an additional piece of information which the machine cannot find or understand on its own. Here, the human does not override the process, but rather supplements the missing information. 

In the HITL approach, humans maintain control over automated workflows, focusing on tasks where their expertise is truly needed. The AI-powered automation software handles the rest, processing documents swiftly and efficiently. 

Human-in-the-loop automation: success factor for automated document processing  

HITL automation proves instrumental for automated document processing. By merging human and machine skills, it addresses the demands and challenges of document processing effectively. Humans can react to unforeseen changes and handle complexity in documents, making HITL an essential element for enhancing automated systems in document automation. 

The Netfira Platform is a human-in-the-loop document automation solution which automates document flows along the Purchase-to-Pay (P2P) and the Order-to-Cash (O2C) process. This AI-driven automation tool leverages the human-in-the-loop approach, expertly handling exceptions and edge cases in automated document processing. The involvement of humans is more than just intervention – it’s the foundation for AI to learn and improve over time, ensuring optimal efficiency in document processing systems. 

Learn in our next blog article Embracing the Inevitable: Errors, Edge Cases, and the Role of HITL Automation in Automated Document Processing why errors and edge cases in automated document processing are inevitable and how Netfira’s human-in-the-loop automation solution is designed to handle them quickly and efficiently.  

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July 5, 2023
Automated invoice processing: Choosing the right automation software
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Automated Invoice Processing: Choosing the Right Automation Software

In our previous article “Streamline accounts payable with automated document processing“, we discussed the importance of an automated accounts payable (AP) cycle for businesses aiming to streamline their accounting activities and establish a transparent, efficient financial supply chain. If you recall, the invoice, being the central document in the AP cycle, plays a pivotal role in this process. As such, selecting the appropriate automation software for invoice processing becomes essential for finance teams. In this follow-up article, we’ll delve deeper into this topic, outlining the features businesses should consider in their quest for the right automation software.

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Unraveling the Complications in Invoice Processing

Invoice processing begins as soon as the accounts payable department receives an invoice. The steps involved, whether they’re paper-based or semi-digitised (mainly PDF invoices), tend to be slow and often lead to inaccuracies. The primary hurdles in processing paper or PDF invoices include excessive manual work, high costs, and the need to navigate multiple systems.

Various automation software tools on the market aim to address these issues, aiming to digitally connect business partners and automate the AP processes.

Understanding the Role of EDI in Invoicing

EDI is commonly used for automating B2B communication, including invoice processing. However, many users find that EDI invoices do not provide the level of automation they initially expected. While EDI offers benefits such as faster, more efficient processes that are less prone to errors, it also comes with several drawbacks.

Limitations and Challenges of EDI Invoicing
1. Restrictive nature
Businesses opting for EDI invoicing must agree on a specific EDI standard and version, which tend to be highly rigid.

2. Varied interpretations of standards

Different businesses interpret EDI standards differently, leading to potential discrepancies in invoices. This can result in the need to maintain multiple EDI connections using various standards and formats.

3. High cost and complexity

EDI can be prohibitively expensive and complicated for many suppliers.

4. Additional burden on IT

EDI projects often require the internal IT team’s involvement, adding to their existing responsibilities.

5. Limited supplier connectivity

Some vendors may be too small for EDI, and it isn’t compatible with all ERP systems.

6. Long and costly implementation

EDI projects can be time-consuming and expensive to set up, with initial capital investment needed for various software and specialists. The return on investment (ROI) for EDI projects is typically slow.

Spotlight on the Right Automation Software

When considering automation software for invoice processing, certain features should be prioritized:

Flexibility

To truly benefit from automated invoice processing and automated accounts payable workflows, all incoming invoices must be automated irrespective of the format or standard.

Automation software like the Netfira Platform automates incoming invoices by extracting relevant data, processing it intelligently based on defined workflows and exporting it into the downstream system. The platform provides fully automated processing of electronic invoices from PDF, ZUGFeRD, XRechnung and other formats making restrictions of standards and versions a thing of the past.

Integration

Businesses should look for automation software which provides easy integration in a variety of systems.

While EDI solutions cannot be used with all ERP systems, other automation tools can easily be integrated with all SAP and non-SAP systems. The Netfira Platform, for example, integrates into any downstream ERP, accounting or other IT system.

Efficiency

Improving operational efficiency is key for every automation project in AP. Automated invoice processing means reducing manual tasks like manual data entry to a minimum and to noticeably relieving teams of slow and error-prone activities. Businesses should choose software solutions based on the degree of efficiency they provide.

When processing invoices, Netfira automatically assigns invoices and shipping notices to orders or order items thus facilitating the comparison of these B2B documents. Moreover, the platform enables intelligent invoice data processing because it provides internal enrichment of invoice data before exporting it to subsequent customer systems. For example, indicators which are not on the document can be transferred and addresses can be checked. The automation solution reaches a high efficiency as it not only captures data but also understands and compares data to ultimately process it intelligently.

Supplier connection

Digitally connecting suppliers and other business partners is a central goal of process automation in accounts payable. However, despite advancements in technology such as EDI solutions, many business partners are still not connected.

Unlike EDI, Netfira can connect all important business partners easily, quickly and cost-effectively. With the Netfira Onboarding App buyers can connect suppliers in three simple steps without having to burden the internal IT. Moreover, there are no barriers for suppliers. Suppliers do not occur any costs and they do no have to change their processes. In contrast to classic EDI technology, the Netfira Platform can be used with both SAP and non-SAP systems.

Data accuracy

Accuracy is a vital feature organisations should focus on to ensure high data quality.

Artificial Intelligence supports the connection of suppliers and thus enables Netfira to achieve highest data accuracy when extracting data. Moreover, it provides the foundation for processing invoice data fully automatically and intelligently. With Netfira’s AI, unstructured data in free texts or in documents such as order confirmations and customer orders can be harmonised and automatically processed. Deviating terms in supplier documents, ambiguous units of measurement or different languages are no longer a problem as AI is constantly learning.

Implementation

Software-as-a-Service (SaaS) solutions provide AP with future-proof technology which enables the automation of operational activities and document processing. Accounts payable software needs to be efficient, reliable and flexible, which are distinct advantages of cloud-based SaaS solutions.

As a SaaS solution operated in the cloud, the Netfira Platform comes with many advantages for the accounts payable department. Unlike traditional EDI solutions, the Netfira Platform is implemented very quickly – often in weeks. The internal IT department is not burdened with additional work because there are only five quick tasks which need to completed. SaaS means low costs for companies as they do not require an internal server infrastructure or need to install and run the application on their systems and thus do not need to invest in hardware and licences. As a web-based solution, users and IT benefit from Netfira automatically updating the software on a regular basis.

Customisation

It is advisable to choose automation software for automated invoice processing which can be easily customised. Unlike off-the-shelf software, custom software is tailor-made, easy to modify and scale.

As a SaaS solution hosted in the cloud, the Netfira Platform can be customised for individual business needs. Teams can work within their familiar environment. There is no need to make disruptive changes to processes or systems as the system can adapt to the relevant requirements of the business. On top of that, the software is designed to scale as the business requires.

Security

SaaS solutions relieve the internal IT because the software provider is responsible for the maintenance and all security-related aspects of the software.

Netfira has made data security a top priority. The Netfira Platform is compliant with the GDPR. Netfira adheres to ISO guidelines 27001, 27017 and 27018 and is certified accordingly. The data centre and support are located in Germany.

Automating Invoice Processing with Future-Proof Technology

To meet the ever-evolving demands of accounts payable and to successfully automate invoices, businesses should opt for technology that’s future-proof, reliable, and agile. Key factors to consider when evaluating automation software are flexibility, integration, efficiency, supplier connectivity, data accuracy, implementation, customisation, and security.

By using the Netfira Platform to automate invoices, accounting teams can enjoy a scalable and easy-to-implement solution that delivers quick ROI. With Netfira, manual work in the accounts payable process is significantly reduced, thus empowering employees to focus on more strategic tasks. This intelligent document automation software streamlines the approval, payment, and reconciliation of invoices, making accounting processes more efficient, transparent, and reliable. As a result, compliance and quality management are enhanced.

Furthermore, the Netfira Platform provides benefits beyond those of traditional EDI invoicing solutions. As a flexible SaaS solution, it adapts to business needs, alleviates the workload of the internal IT team, and connects suppliers quickly, easily, and cost-effectively. This advanced platform solution enhances supplier relations and optimises processes across departments and businesses through automation. By unlocking the full potential of automated invoice processing, businesses can gain a significant competitive edge.

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Learn how Pfleiderer successfully digitised its procurement through process automation.

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June 21, 2023
Automated invoice processing: Choosing the right automation software
Trending articles

Automated Invoice Processing: Choosing the Right Automation Software

In our previous article “Streamline accounts payable with automated document processing“, we discussed the importance of an automated accounts payable (AP) cycle for businesses aiming to streamline their accounting activities and establish a transparent, efficient financial supply chain. If you recall, the invoice, being the central document in the AP cycle, plays a pivotal role in this process. As such, selecting the appropriate automation software for invoice processing becomes essential for finance teams. In this follow-up article, we’ll delve deeper into this topic, outlining the features businesses should consider in their quest for the right automation software.

Share:

Unraveling the Complications in Invoice Processing

Invoice processing begins as soon as the accounts payable department receives an invoice. The steps involved, whether they’re paper-based or semi-digitised (mainly PDF invoices), tend to be slow and often lead to inaccuracies. The primary hurdles in processing paper or PDF invoices include excessive manual work, high costs, and the need to navigate multiple systems.

Various automation software tools on the market aim to address these issues, aiming to digitally connect business partners and automate the AP processes.

Understanding the Role of EDI in Invoicing

EDI is commonly used for automating B2B communication, including invoice processing. However, many users find that EDI invoices do not provide the level of automation they initially expected. While EDI offers benefits such as faster, more efficient processes that are less prone to errors, it also comes with several drawbacks.

Limitations and Challenges of EDI Invoicing
1. Restrictive nature
Businesses opting for EDI invoicing must agree on a specific EDI standard and version, which tend to be highly rigid.

2. Varied interpretations of standards

Different businesses interpret EDI standards differently, leading to potential discrepancies in invoices. This can result in the need to maintain multiple EDI connections using various standards and formats.

3. High cost and complexity

EDI can be prohibitively expensive and complicated for many suppliers.

4. Additional burden on IT

EDI projects often require the internal IT team’s involvement, adding to their existing responsibilities.

5. Limited supplier connectivity

Some vendors may be too small for EDI, and it isn’t compatible with all ERP systems.

6. Long and costly implementation

EDI projects can be time-consuming and expensive to set up, with initial capital investment needed for various software and specialists. The return on investment (ROI) for EDI projects is typically slow.

Spotlight on the Right Automation Software

When considering automation software for invoice processing, certain features should be prioritized:

Flexibility

To truly benefit from automated invoice processing and automated accounts payable workflows, all incoming invoices must be automated irrespective of the format or standard.

Automation software like the Netfira Platform automates incoming invoices by extracting relevant data, processing it intelligently based on defined workflows and exporting it into the downstream system. The platform provides fully automated processing of electronic invoices from PDF, ZUGFeRD, XRechnung and other formats making restrictions of standards and versions a thing of the past.

Integration

Businesses should look for automation software which provides easy integration in a variety of systems.

While EDI solutions cannot be used with all ERP systems, other automation tools can easily be integrated with all SAP and non-SAP systems. The Netfira Platform, for example, integrates into any downstream ERP, accounting or other IT system.

Efficiency

Improving operational efficiency is key for every automation project in AP. Automated invoice processing means reducing manual tasks like manual data entry to a minimum and to noticeably relieving teams of slow and error-prone activities. Businesses should choose software solutions based on the degree of efficiency they provide.

When processing invoices, Netfira automatically assigns invoices and shipping notices to orders or order items thus facilitating the comparison of these B2B documents. Moreover, the platform enables intelligent invoice data processing because it provides internal enrichment of invoice data before exporting it to subsequent customer systems. For example, indicators which are not on the document can be transferred and addresses can be checked. The automation solution reaches a high efficiency as it not only captures data but also understands and compares data to ultimately process it intelligently.

Supplier connection

Digitally connecting suppliers and other business partners is a central goal of process automation in accounts payable. However, despite advancements in technology such as EDI solutions, many business partners are still not connected.

Unlike EDI, Netfira can connect all important business partners easily, quickly and cost-effectively. With the Netfira Onboarding App buyers can connect suppliers in three simple steps without having to burden the internal IT. Moreover, there are no barriers for suppliers. Suppliers do not occur any costs and they do no have to change their processes. In contrast to classic EDI technology, the Netfira Platform can be used with both SAP and non-SAP systems.

Data accuracy

Accuracy is a vital feature organisations should focus on to ensure high data quality.

Artificial Intelligence supports the connection of suppliers and thus enables Netfira to achieve highest data accuracy when extracting data. Moreover, it provides the foundation for processing invoice data fully automatically and intelligently. With Netfira’s AI, unstructured data in free texts or in documents such as order confirmations and customer orders can be harmonised and automatically processed. Deviating terms in supplier documents, ambiguous units of measurement or different languages are no longer a problem as AI is constantly learning.

Implementation

Software-as-a-Service (SaaS) solutions provide AP with future-proof technology which enables the automation of operational activities and document processing. Accounts payable software needs to be efficient, reliable and flexible, which are distinct advantages of cloud-based SaaS solutions.

As a SaaS solution operated in the cloud, the Netfira Platform comes with many advantages for the accounts payable department. Unlike traditional EDI solutions, the Netfira Platform is implemented very quickly – often in weeks. The internal IT department is not burdened with additional work because there are only five quick tasks which need to completed. SaaS means low costs for companies as they do not require an internal server infrastructure or need to install and run the application on their systems and thus do not need to invest in hardware and licences. As a web-based solution, users and IT benefit from Netfira automatically updating the software on a regular basis.

Customisation

It is advisable to choose automation software for automated invoice processing which can be easily customised. Unlike off-the-shelf software, custom software is tailor-made, easy to modify and scale.

As a SaaS solution hosted in the cloud, the Netfira Platform can be customised for individual business needs. Teams can work within their familiar environment. There is no need to make disruptive changes to processes or systems as the system can adapt to the relevant requirements of the business. On top of that, the software is designed to scale as the business requires.

Security

SaaS solutions relieve the internal IT because the software provider is responsible for the maintenance and all security-related aspects of the software.

Netfira has made data security a top priority. The Netfira Platform is compliant with the GDPR. Netfira adheres to ISO guidelines 27001, 27017 and 27018 and is certified accordingly. The data centre and support are located in Germany.

Automating Invoice Processing with Future-Proof Technology

To meet the ever-evolving demands of accounts payable and to successfully automate invoices, businesses should opt for technology that’s future-proof, reliable, and agile. Key factors to consider when evaluating automation software are flexibility, integration, efficiency, supplier connectivity, data accuracy, implementation, customisation, and security.

By using the Netfira Platform to automate invoices, accounting teams can enjoy a scalable and easy-to-implement solution that delivers quick ROI. With Netfira, manual work in the accounts payable process is significantly reduced, thus empowering employees to focus on more strategic tasks. This intelligent document automation software streamlines the approval, payment, and reconciliation of invoices, making accounting processes more efficient, transparent, and reliable. As a result, compliance and quality management are enhanced.

Furthermore, the Netfira Platform provides benefits beyond those of traditional EDI invoicing solutions. As a flexible SaaS solution, it adapts to business needs, alleviates the workload of the internal IT team, and connects suppliers quickly, easily, and cost-effectively. This advanced platform solution enhances supplier relations and optimises processes across departments and businesses through automation. By unlocking the full potential of automated invoice processing, businesses can gain a significant competitive edge.

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June 21, 2023
Automated invoice processing: Choosing the right automation software
Trending articles

Automated Invoice Processing: Choosing the Right Automation Software

In our previous article “Streamline accounts payable with automated document processing“, we discussed the importance of an automated accounts payable (AP) cycle for businesses aiming to streamline their accounting activities and establish a transparent, efficient financial supply chain. If you recall, the invoice, being the central document in the AP cycle, plays a pivotal role in this process. As such, selecting the appropriate automation software for invoice processing becomes essential for finance teams. In this follow-up article, we’ll delve deeper into this topic, outlining the features businesses should consider in their quest for the right automation software.

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Unraveling the Complications in Invoice Processing

Invoice processing begins as soon as the accounts payable department receives an invoice. The steps involved, whether they’re paper-based or semi-digitised (mainly PDF invoices), tend to be slow and often lead to inaccuracies. The primary hurdles in processing paper or PDF invoices include excessive manual work, high costs, and the need to navigate multiple systems.

Various automation software tools on the market aim to address these issues, aiming to digitally connect business partners and automate the AP processes.

Understanding the Role of EDI in Invoicing

EDI is commonly used for automating B2B communication, including invoice processing. However, many users find that EDI invoices do not provide the level of automation they initially expected. While EDI offers benefits such as faster, more efficient processes that are less prone to errors, it also comes with several drawbacks.

Limitations and Challenges of EDI Invoicing
1. Restrictive nature
Businesses opting for EDI invoicing must agree on a specific EDI standard and version, which tend to be highly rigid.

2. Varied interpretations of standards

Different businesses interpret EDI standards differently, leading to potential discrepancies in invoices. This can result in the need to maintain multiple EDI connections using various standards and formats.

3. High cost and complexity

EDI can be prohibitively expensive and complicated for many suppliers.

4. Additional burden on IT

EDI projects often require the internal IT team’s involvement, adding to their existing responsibilities.

5. Limited supplier connectivity

Some vendors may be too small for EDI, and it isn’t compatible with all ERP systems.

6. Long and costly implementation

EDI projects can be time-consuming and expensive to set up, with initial capital investment needed for various software and specialists. The return on investment (ROI) for EDI projects is typically slow.

Spotlight on the Right Automation Software

When considering automation software for invoice processing, certain features should be prioritized:

Flexibility

To truly benefit from automated invoice processing and automated accounts payable workflows, all incoming invoices must be automated irrespective of the format or standard.

Automation software like the Netfira Platform automates incoming invoices by extracting relevant data, processing it intelligently based on defined workflows and exporting it into the downstream system. The platform provides fully automated processing of electronic invoices from PDF, ZUGFeRD, XRechnung and other formats making restrictions of standards and versions a thing of the past.

Integration

Businesses should look for automation software which provides easy integration in a variety of systems.

While EDI solutions cannot be used with all ERP systems, other automation tools can easily be integrated with all SAP and non-SAP systems. The Netfira Platform, for example, integrates into any downstream ERP, accounting or other IT system.

Efficiency

Improving operational efficiency is key for every automation project in AP. Automated invoice processing means reducing manual tasks like manual data entry to a minimum and to noticeably relieving teams of slow and error-prone activities. Businesses should choose software solutions based on the degree of efficiency they provide.

When processing invoices, Netfira automatically assigns invoices and shipping notices to orders or order items thus facilitating the comparison of these B2B documents. Moreover, the platform enables intelligent invoice data processing because it provides internal enrichment of invoice data before exporting it to subsequent customer systems. For example, indicators which are not on the document can be transferred and addresses can be checked. The automation solution reaches a high efficiency as it not only captures data but also understands and compares data to ultimately process it intelligently.

Supplier connection

Digitally connecting suppliers and other business partners is a central goal of process automation in accounts payable. However, despite advancements in technology such as EDI solutions, many business partners are still not connected.

Unlike EDI, Netfira can connect all important business partners easily, quickly and cost-effectively. With the Netfira Onboarding App buyers can connect suppliers in three simple steps without having to burden the internal IT. Moreover, there are no barriers for suppliers. Suppliers do not occur any costs and they do no have to change their processes. In contrast to classic EDI technology, the Netfira Platform can be used with both SAP and non-SAP systems.

Data accuracy

Accuracy is a vital feature organisations should focus on to ensure high data quality.

Artificial Intelligence supports the connection of suppliers and thus enables Netfira to achieve highest data accuracy when extracting data. Moreover, it provides the foundation for processing invoice data fully automatically and intelligently. With Netfira’s AI, unstructured data in free texts or in documents such as order confirmations and customer orders can be harmonised and automatically processed. Deviating terms in supplier documents, ambiguous units of measurement or different languages are no longer a problem as AI is constantly learning.

Implementation

Software-as-a-Service (SaaS) solutions provide AP with future-proof technology which enables the automation of operational activities and document processing. Accounts payable software needs to be efficient, reliable and flexible, which are distinct advantages of cloud-based SaaS solutions.

As a SaaS solution operated in the cloud, the Netfira Platform comes with many advantages for the accounts payable department. Unlike traditional EDI solutions, the Netfira Platform is implemented very quickly – often in weeks. The internal IT department is not burdened with additional work because there are only five quick tasks which need to completed. SaaS means low costs for companies as they do not require an internal server infrastructure or need to install and run the application on their systems and thus do not need to invest in hardware and licences. As a web-based solution, users and IT benefit from Netfira automatically updating the software on a regular basis.

Customisation

It is advisable to choose automation software for automated invoice processing which can be easily customised. Unlike off-the-shelf software, custom software is tailor-made, easy to modify and scale.

As a SaaS solution hosted in the cloud, the Netfira Platform can be customised for individual business needs. Teams can work within their familiar environment. There is no need to make disruptive changes to processes or systems as the system can adapt to the relevant requirements of the business. On top of that, the software is designed to scale as the business requires.

Security

SaaS solutions relieve the internal IT because the software provider is responsible for the maintenance and all security-related aspects of the software.

Netfira has made data security a top priority. The Netfira Platform is compliant with the GDPR. Netfira adheres to ISO guidelines 27001, 27017 and 27018 and is certified accordingly. The data centre and support are located in Germany.

Automating Invoice Processing with Future-Proof Technology

To meet the ever-evolving demands of accounts payable and to successfully automate invoices, businesses should opt for technology that’s future-proof, reliable, and agile. Key factors to consider when evaluating automation software are flexibility, integration, efficiency, supplier connectivity, data accuracy, implementation, customisation, and security.

By using the Netfira Platform to automate invoices, accounting teams can enjoy a scalable and easy-to-implement solution that delivers quick ROI. With Netfira, manual work in the accounts payable process is significantly reduced, thus empowering employees to focus on more strategic tasks. This intelligent document automation software streamlines the approval, payment, and reconciliation of invoices, making accounting processes more efficient, transparent, and reliable. As a result, compliance and quality management are enhanced.

Furthermore, the Netfira Platform provides benefits beyond those of traditional EDI invoicing solutions. As a flexible SaaS solution, it adapts to business needs, alleviates the workload of the internal IT team, and connects suppliers quickly, easily, and cost-effectively. This advanced platform solution enhances supplier relations and optimises processes across departments and businesses through automation. By unlocking the full potential of automated invoice processing, businesses can gain a significant competitive edge.

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June 21, 2023
Streamline accounts payable with automated document processing

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Streamline accounts payable with automated document processing

Today, many companies still manage their accounts payable (AP) process through a paper-based system, making it slow, error-prone, and inefficient. Manual data entry, comparison, and paper-based record-keeping no longer meet the needs of businesses that seek an optimal return on their accounting activities and a transparent financial supply chain. Accounts payable automation solutions are thus becoming integral to every company’s digitisation efforts. By leveraging automated document processing, businesses can streamline their AP operations, optimising business processes while saving time and money.

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Understanding the Accounts Payable Process

The accounts payable process is an essential component of the broader expenditure and purchasing cycle, forming part of the Procure-to-Pay (P2P) process. This cycle encompasses procurement, goods receipts, invoice processing, and business partner payments.

The AP process, in particular, focuses on invoice processing and supplier payments. After an order is placed and the customer receives the desired product or service, various essential accounting steps must be completed. These steps include invoice data capture, coding invoices with the correct account and cost centres, matching invoices to purchase orders, approving invoices, and posting payments.

The Accounts Payable Cycle: A Closer Look

The accounts payable cycle starts with the vendor. Once the procurement team places an order with the supplier, the company receives the product or service. The accounts payable department then logs the receiving report or the advanced shipping note. Subsequently, the supplier sends an invoice for the goods shipped or the service rendered. The AP department verifies the information on the invoice to ensure accuracy, often comparing it with B2B documents such as the receiving report, purchase order, or the shipping notice. It’s crucial to match the quantities, prices, and descriptions on each document to the invoice. If all the information is correct, the invoice is authorised for payment.

Why Automate the Accounts Payable Cycle?

Traditionally, the accounts payable process is paper-based, manual, and time-consuming. Financial teams must compare, validate, and enter data manually into downstream systems. Managing large volumes of paperwork can overwhelm AP teams, leading to errors, delays, inefficient processes, and unnecessary costs, affecting not only employees but also the company’s bottom line.

The Key to Streamlining Accounts Payable: Automated Document Processing

Automation software is essential for streamlining accounts payable. Given that the steps in the AP process involve exchanging, verifying, comparing, and approving data and documents, it’s clear that manual operational accounting processes are time-consuming and prone to human error. By implementing automated document flows, businesses can streamline accounts payable effectively. Accounts payable software offers automated document processing, digitising financial and accounting processes, and enhancing efficiency.

Automating Accounts Payable Cycles

The basic accounts payable cycle includes three significant documents: purchase order (PO), advanced shipping notice (ASN), and invoice. Financial teams must compare the incoming invoice with the advanced shipping notice or the purchase order to ensure correctness before authorising payment.

Accounts payable software automatically processes purchase orders, shipping notices, and invoices, facilitating optimised digital processes. The software extracts relevant data from documents and exports it into ERP or other IT systems. Invoices and shipping notices can be automatically assigned to orders or order items, ensuring transparency, speed, and accuracy. This automation relieves employees from manually checking and comparing documents, offering them full control and visibility of automated workflows, and providing critical real-time information.

The Benefits of Automated Accounts Payable

1. Less manual work

Automation significantly reduces manual activities in accounts payable. There’s no need for manual data entry, as the software captures data automatically, ensuring high accuracy with minimal human intervention.

2. Time savings

Automated document processing speeds up invoice processing, making digital invoices easy to search for and impossible to misplace. Streamlining the approval process ensures that the right person receives the right invoice at the right time, freeing up the finance team to focus on other important tasks. According to a report by Ardent Partners, organisations that automate their accounts payable processes can process invoices up to 9 times faster.

3. Money savings

Manual processes are not only time-consuming but also costly. By eliminating manual work and saving time, businesses can reduce labour costs, particularly those associated with manual data entry, storage, and postage. Simultaneously, they can ensure that payments are always made on time. Ardent Partners’ research shows that enterprises using automated AP processes can process invoices at a cost that is 92% lower than those relying on manual processes.

4. Increased sustainability

Paperless accounting processes not only improve efficiency, accuracy, and transparency, but they also support sustainability. Document automation saves valuable resources, contributing to an eco-friendlier business model.

5. Enhanced visibility and more control

Automated accounts payable processes provide enhanced visibility into payment workflows, helping prevent errors and detect suspicious activity. They maintain compliance, avoid fees, and create a clear audit trail.

6. Improved accuracy 

Accounts payable automation tools reliably reduce errors and increase accuracy. A survey by APQC shows that organisations that automate their accounts payable processes have invoice processing error rates that are up to 66% lower than those relying on manual processes.

Conclusion: The Advantage of Streamlined Accounts Payable Through Automated Document Processing

Automated document processing is the key to streamlining accounts payable. By choosing an accounts payable automation software, businesses can eliminate manual accounting tasks, improve accuracy, achieve data transparency, automate operational processes, and take control of important financial workflows. The automated processing of document flows helps enterprises achieve a higher level of efficiency and accountability, while also saving time, human resources, and money.

As businesses look towards a more digital future, the benefits of automating the AP process are clear. Companies seeking to boost efficiency, reduce errors, and save costs should consider investing in automated document processing solutions. The initial investment in this technology can yield significant returns in the long run, contributing to business growth and financial stability.

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May 17, 2023
Why you should automate customer orders to optimise your Order-to-Cash process
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Why you should automate customer orders to optimise your Order-to-Cash process

The Order-to-Cash (O2C) process is critical and complex for any organization. Inefficient manual O2C processes can negatively impact business outcomes and damage customer relationships. Since the exchange and processing of B2B documents is central to the O2C cycle, automating document processing is crucial to achieving order-to-cash automation. Automated customer order processing is particularly important in automating the O2C process. The Netfira Platform automates incoming customer orders in just six simple steps, which helps sales teams achieve greater transparency and efficiency by optimising the O2C process.

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What is the Order-to-Cash process?

Order to cash (OTC or O2C) refers to one of the most critical and complex business processes for receiving and processing customer orders and revenue recognition. It involves the entire process of receiving a customer’s order, from the point of ordering to the customer’s payment of their outstanding account.

O2C encompasses all the steps involved in processing customer orders, from the moment a customer places the order to when payment is received and applied to accounts receivable. These steps include order management, order fulfillment, billing, payment processing, and reporting.

The Order-to-Cash process is primarily assigned to the sales department within a company since it is an order process seen by the supplier. The Procure-to-Pay (P2P) process, on the other hand, is equivalent to the Order-to-Cash process but from the procurement side.

Automating O2C processes is crucial in achieving greater efficiency and customer satisfaction. With automated document processing, such as that offered by the Netfira Platform, incoming customer orders can be automated in just six steps, improving transparency and efficiency in the O2C process.

The four phases of the Order-to-Cash process

The O2C process can be roughly divided into four phases:

1. Pre-sales activities

Pre-sales activities refer to the actions that take place before an order is processed. It starts with the contact between the customer and the company. Usually, the customer makes a non-binding inquiry in advance, which involves comparing their needs with the product or service. This is followed by an offer containing all the important information for a potential order.

2. Customer order processing

The processing of the customer order is the central element of the Order-to-Cash process. In most cases, the customer order contains numerous pieces of information, such as the price, key data on goods and/or services, delivery quantity and data, shipment and payment terms.

3. Shipping

The order processing is followed by the shipment of goods or, alternatively, by providing the respective service.

4. Invoicing

Once the goods are delivered, the next step is the payment process. Normally, payment is made as soon as the customer has received the ordered goods or service. However, advance payment is also possible. Invoicing also includes receivables management and the possible creation of credit notes.

Challenges that businesses face in the Order-to-Cash process

The Order-to-Cash process presents several challenges for businesses, with many companies struggling with slow and error-prone manual processes. One significant challenge is the high risk of input errors, which can lead to customer complaints and delays in payment processing. In a study by the Institute of Finance and Management, 51% of respondents reported experiencing an increase in customer complaints due to O2C issues. Additionally, paper-based processes can be time-consuming and prone to mistakes, leading to increased costs and inefficiencies. These challenges can impact businesses’ bottom lines and damage customer relationships, making it essential to streamline and optimise the O2C process.

Order-to-Cash process automation through document automation

Document processing plays a central role in the O2C process. While the O2C cycle encompasses many sub-processes and documents such as quotes, shipping notices, and invoices, processing incoming customer orders lies at the heart of the process. However, in many companies, the sales process remains predominantly paper-based, manual, and time-consuming. Sales teams need to manually compare and validate data from customer orders and enter them into downstream systems, which poses significant challenges. Managing multiple paper documents is challenging, prone to errors and inaccuracies, and slows down employees and workflows, thereby negatively impacting the entire O2C process. Order-to-Cash automation can only succeed when customer orders are processed automatically.

Benefits of automating customer orders

Digitizing documents in a company’s sales process, such as incoming customer orders, can significantly increase operational efficiency. Automated processing of customer orders can reduce costs by up to 30%. This is because automated document processing eliminates the need for tedious manual data entry. As a result, input errors are minimized, processes are sped up, and employees are freed from non-value-adding work. Overall, the O2C process becomes more transparent, reliable, and faster.

How to automate customer orders with Netfira

Netfira’s cloud-based SaaS solution automates the bidirectional exchange of B2B documents and data. The Netfira Platform automatically extracts relevant data, processes it intelligently, and exports it to any ERP system. By automating the processing of incoming customer orders, businesses can optimise their O2C process and relieve employees. The automation of the document workflow comprises 6 steps:
1. Connecting business partners
With the Netfira Onboarding App, sales teams can quickly, easily, and cost-effectively connect with business partners. The onboarding process consists of three simple steps and usually takes only a few minutes. The AI-supported app technology can process and harmonize unstructured data or free texts in customer orders automatically, achieving exceptional data accuracy and minimizing the need for manual changes and corrections. With these mechanisms, Netfira connects business partners to its digitization process and creates recognition profiles for incoming customer orders.

2. Extracting data from customer orders

After the Netfira Platform recognizes the documents of the connected business partners, the data stored for the Netfira customer in the recognition profile is automatically extracted from the document.

3. Enriching data

If required, the extracted data can be enriched with additional data that is important for sales and its subsequent system but is not included in the business partner’s documents.

4. Comparing data

The extracted data from the customer orders can be compared with master data provided by the Netfira customer using an application programming interface (API) or file interface. For example, the system can verify whether the article number provided on the business partner’s document corresponds to the article number in the sales system.

5. Providing extracted data

The extracted data is provided to the sales department in an individual data exchange format. Possible formats include SAP-IDoc, ORDERS-edi format, XML, or CSV data file.

6. Importing data into the ERP system

The provided data is imported into the ERP or merchandise management system of the sales department. Import is possible into any system that can transfer extracted and provided data from a data source into the sales order entry.

Sales benefits from automated customer orders and an optimized O2C process

Cumbersome and labor-intensive O2C processes can cause significant problems for businesses and their customers. Slow and error-prone processes can hurt cash flow, lead to shipping delays, and result in a poor customer experience. However, by automating the processing of incoming customer orders, the O2C process can be noticeably optimised, resulting in numerous benefits.

Automated document workflows can significantly increase the accuracy of data entry, reducing the risk of input errors and freeing up employees from time-consuming and repetitive tasks. This automation can also speed up processes and allow businesses to make faster decisions.

With greater visibility into the O2C process, sales teams can make better decisions and respond more quickly to changing market conditions. Additionally, automated document workflows create transparency and efficiency, enabling businesses to identify and address any issues that may arise in the process.

Overall, automated document workflows in the O2C process can provide businesses with numerous benefits, including improved data accuracy, faster decision making, greater visibility into cash flow, and a better customer experience.

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May 11, 2023