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How document automation helps achieve optimised paperless purchasing processes

For years, business professionals have dreamt of a paperless office. Paperless offices in purchasing are synonyms for efficiency, transparency, and eco-friendliness. Although the advantages of paperless business processes are indisputable, many companies are still reluctant to put the vision into practice. While PDFs and online cloud storage solutions are slowly replacing paper records, the laborious task of processing these documents remains. The benefits of paperless purchasing processes include, among others, cost and time savings, increased productivity and transparency. Purchasing can optimise their processes through the automation of documents along the Procure-to-Pay process. International producer of wood-based materials, Pfleiderer, has made the first step towards a paperless office by implementing the Netfira Platform as a document automation solution.  

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Why purchasing needs paperless processes

Traditionally, the procurement process is paper-based, manual and time-intensive. Buyers need to manually compare, validate, and enter data into downstream systems. Managing large volumes of paperwork, however, can become a challenge for procurement teams. 

“We have known about the concept of the paperless office for years. Most companies just don’t live it. We must accept that a lot of information is stored digitally and no longer needs to be printed out.” Josef Pack, Head of Procurement, Pfleiderer Deutschland GmbH 

The manual processing and exchange of documents and data as well as paper-based record-keeping are no longer sufficient for companies that want an optimal return on their purchasing investment or a resilient strategic supply chain. Document automation along the P2P process is important to the financial health and overall competitive strength of a business—especially if businesses are seeking to build value while reducing costs.  

The benefits of paperless purchasing processes

Cost savings

One of the biggest issues with paper-based systems is costs. Companies’ filing systems require investments in equipment and materials like file folders, cabinets, and shelves. Printers need ink, maintenance, and paper. With automated document processing, printing out paper is not necessary anymore. This reduces costs significantly.  

Time savings and increased productivity

Manually organising, processing, updating, and recovering paper documents is dull and resource-intensive work. Buyers often lack time to focus on value creation because of repetitive manual tasks.  

“We cannot ignore the issue of digitisation. Digitisation means a significant work simplification for our employees as we can operate processes much quicker without using analogue media.” Josef Pack, Head of Procurement, Pfleiderer Deutschland GmbH  

Increased sustainability

Paper production negatively impacts our environment. The process consumes a large quantity of fossil fuels and water and is a key contributor to deforestation as well as air and water pollution. Companies that heavily rely on paper-based processes and activities also need to take the effects of inks and toners into account, as most contain environmentally unfriendly chemicals. Document automation makes paper obsolete and therefore saves resources. 

Optimised paperless purchasing processes – more than just working digitally

Few will argue against the notion that all companies should move towards paperless processes. The benefits are undeniable and many purchasing departments have now refrained from printing out incoming and outgoing documents. However, processing documents as PDFs on a computer is a time-consuming and often frustrating exercise. This process may in fact be paperless but it is far from optimised. Optimised paperless processes, which make work noticeably easier for buyers, only exist when manual work is reduced to a minimum through digitisation and automation. 

Optimised paperless processes rely on automated processes

To become paperless, digitisation is the first step. Often, OCR technology is used to convert documents into a digital format by scanning and digitising information from printed documents, images or handwritten text. In purchasing, buyers mainly use OCR to scan and digitise information, for example from printed invoices. Besides the insufficient reading accuracy of OCR, another disadvantage is that even if PDFs are digitised, they must still be compared and validated manually by the buyers. Only with digital automation tools like the Netfira Platform can document flows be seamlessly digitised and automatically processed. 

Document automation with the Netfira Platform leads to optimised paperless processes

The Netfira Platform is a secure cloud-based SaaS solution for automating the bidirectional exchange of B2B documents and data. It increases operational efficiency along the P2P process and leads to optimised paperless processes by automating all documents, including purchase order confirmations, invoices, shipping notices, purchase orders, quotes and more. 

The platform’s data extraction operates with a data accuracy of nearly 100%, eliminating time-consuming and error-prone manual activities. Manual data entry is not necessary anymore. The software solution automatically extracts relevant data, processes it intelligently and exports it into any ERP system. Buyers do not have to compare and validate every single document anymore.  

The Netfira Platform allows purchasing to achieve nearly 100% automatic processing of documents where there is no deviation. Deviations can be identified quickly and easily in the familiar ERP environment. The platform directs the buyers directly to parameters that need to be checked. The structured and standardised process for handling deviations saves the purchasing department time and reduces stress in the approval process. 

Benefits of automated paperless purchasing processes

1. Automated document processing strengthens procurement’s role

Automated document processing solutions save time and create opportunities for purchasing to play a more active role in helping the company achieve its business objectives. For example, automating the P2P workflow frees purchasing experts to focus on value-generating activities including 

• Improving spend management 
• Strengthening supplier relationships 
• Creating technological innovation partnerships  

Moreover, document automation along the P2P process through software solutions shorten and speed up the procurement cycle. As a result, less capital is caught up in lengthy reviews and evaluations.  

2. Improved transparency and shorter reaction times

Manual purchasing processes prevent transparency and short reaction times. However, for a P2P process to be smooth and efficient, buyers need to have reliable information and need to be able to react to discrepancies or unforeseen changes promptly. This kind of transparency and flexibility can only be achieved through document automation. Through automated workflows, buyers receive information and notifications at the push of a button. Real-time information accelerates purchasing processes and improves the digital connection along the supply chain. 

Optimised paperless purchasing processes through document automation with the Netfira Platform

Through the automated processing of B2B documents and data, the Netfira Platform can not only help enterprises to become paperless but also to reduce manual operational activities to a minimum and to automate their workflows. With the document automation solution from Netfira, procurement benefits from more efficiency, transparent and reliable processes, time and cost savings and shorter reaction times.

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Seven tips for a successful digitisation project in purchasing

End-to-end digitalisation of business processes sits atop the list of priorities for companies of all sizes. For a modern and agile procurement department, process automation is a key driver of digital transformation. However, the implementation of digital automation solutions in procurement is often more difficult than expected. One challenge is the sheer mass of digital tools: From specialists to full-suite providers, there are around 200 digital tools for purchasing on the German-speaking market. The systems support purchasing operationally, tactically and strategically in supplier, commodity group and risk management. To make an informed decision and to implement a successful digitisation project, purchasing should therefore rely on a structured approach and follow certain steps. 

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1. Cooperate with internal IT

Purchasing should not simply delegate the digitisation project to the IT department. Although IT plays a central role in the digital strategy, it is not advisable to leave the entire digitalisation topic to a single department as it is too important for the business. The various digitalisation topics are multifaceted, so the IT department’s technical understanding alone is not sufficient. In addition, internal IT is usually busy with its core business. Consequently, a digitisation project in purchasing must be supported across departments to ensure technological, strategic, personnel and structural components are interlinked. 

With that in mind, purchasing should ensure that the internal IT is on board right from the start. A quick and easy implementation and a smooth roll-out is important to achieve quick value-add for both purchasing and IT. The amount of work involved for IT should be considered in the decision-making process when selecting a software solution. The Netfira Platform, for instance, can be implemented with minimal effort from internal IT teams. As part of the implementation process, there are only 5 tasks that require action from internal IT teams.

2. Evaluate own starting position

At the beginning of the digitisation project, purchasing should ask itself where it stands, what its goals are and which project steps are necessary to achieve them. In order to determine which system supports purchasing needs, the team needs to analyse the purchasing processes. The analysis should aim to determine how standardised, measurable and IT-supported the processes already are. For each process, purchasing should determine the target maturity level it wants to reach. 

3. Formulate the requirements

In the next step, the purchasing department needs to prioritise its improvement goals. There are a number of things to consider and evaluate before undertaking the software selection process. Well-defined specifications will help the team to define the business problem and accelerate the software selection process. Purchasing needs to determine, in detail, which functions they need at which point in time and how they should be designed to meet the requirements. Netfira has created a checklist to help purchasing work through the process of defining software specifications. 

4. Coordinated search of software providers for digitising purchasing

For the evaluation of offers, purchasing should define an evaluation system together with IT and the other relevant departments. This enables a selection decision that is supported by everyone. It should include questions about data protection and data security, project management methods, usability, implementation experience and the business’s change management needs. Netfira offers a software selection checklist to support purchasing departments in defining goals that meet the SMART criteria (Specific, Measurable, Achievable, Relevant and Time-bound) and selecting suitable software that meets their needs. 

On top of that, procurement teams should consider the following criteria when selecting eligible service providers for digitising purchasing processes:  

5. Industry recognition

Industry recognition often equates to expertise. Buyers should choose a software provider that has repeatedly proven in the past that it can support purchasing departments in their digitisation efforts in an uncomplicated, fast,and reliable manner. Learn here how Rosendahl Nextrom successfully digitised its operational processes with the Netfira Platform.

6. Flexibility of the provider and the software solution

Procurement is different in every industry and every company. Each procurement department has specific requirements, challenges, and needs. A flexible solution, easy implementation and high ease of use are preferable to rigid systems. Read here how Fissler GmbH benefitted from Netfira’s flexibility when carrying out the digitisation project in purchasing.

7. The solution’s future potential

Purchasing must consider, with foresight, what future enhancements the department might need. The software solution purchasing uses should grow with the department. For this reason, modular solutions that can be introduced and expanded step by step are beneficial. The Netfira Platform is a SaaS solution that is hosted in the cloud. Cloud solutions are efficient, flexible and easy to scale so they are tailored to users’ needs.

Conclusion: How to digitise purchasing successfully

With a structured approach, businesses can carry out digitisation projects in purchasing smoothly and successfully. Cross-departmental collaboration, a good evaluation system and the definition of software specifications are among the crucial factors for preparing and implementing a successful digitalisation project. Keeping these seven tips in mind will help you find the right software solution that meets the needs of all departments involved.  

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Five reasons for purchasing to focus on process optimisation through automation

Outdated and inefficient ways of working often characterise purchasing departments. Manual activities which are time-consuming and error-prone prevent purchasing teams from focusing on more important tasks. In an increasingly digitised B2B world, purchasing needs to optimise its processes and improve operational efficiency to stay competitive and resilient. Automating purchasing processes with digital automation tools leads to increased process optimisation. Here are five reasons why purchasing should focus on process optimisation through automation.

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1. Purchasing departments that automate their processes are more successful.

Automating the steps along the P2P process offers numerous competitive advantages such as reducing the stress placed on procurement managers and allowing them to focus their energy elsewhere as demonstrated by Netfira’s client Gardner Denver’s global commodity manager: “We can reduce manual activities to a minimum so that we have more time for important tasks.” Learn here how the Netfira Platform helped Gardner Denver achieve process optimisation through automating operational purchasing processes.  

2. Purchasing teams that invest in automation can realise their full potential.

Essential purchasing tasks are often neglected due to the exhaustive manual activities that dominate day-to-day work. Automated document processing reduces the manual workload on team members while increasing reliability, enabling shorter processing times and reducing costs. Buyers can complete tasks more efficiently, quickly, and with greater foresight which unlocks the strategic, creative and value-adding potential of the procurement team. They can use the time gained for other important activities such as supplier relations.  

3. Buyers that build on digital and automated processes make more reliable business partners.

Automated processes based on cutting-edge technologies such as Artificial Intelligence (AI), app technologies or cloud solutions enable more foresight and flexibility towards unforeseen challenges or customer requirements. Moreover, these digital automation tools help to transform buyers into digital buyers. The three pillars of modern procurement are internal and external networking, production and value creation, and the establishment of new digital business models. Purchasing acts as a moderator at the interfaces to internal partners – such as controlling and accounting – and external partners – for example suppliers – and increases contributions along the value chain. As digital managers, buyers establish themselves as resilient business partners both inside and outside the company. In our blog article you can find more information how digital transformation tools future-proof the procurement manager’s role.  

4. Purchasing departments that use new technologies can act more efficiently and transparently.

New automation technologies are drivers of process optimisation in purchasing. Digital automation tools powered by Artificial Intelligence, robotic process automation (RPA) and cloud computing support a modern and efficient working style. AI and RPA digitise and automate repetitive, manual and error-prone processes. Find out in our blog post why AI in particular is suitable for automating processes and document flows in procurement. Cloud solutions make your company more flexible, agile and future-proof. SaaS solutions eliminate the need to purchase, install, maintain and update hardware and software. Buyers can use the applications immediately. Cloud-based SaaS solutions stand for efficiency, cost-effectiveness and scalability. Read more about the benefits of a SaaS solution for procurement in our blog article. 

5. Purchasing departments that drive process optimisation through automation will remain competitive in the long run.

Process optimisation does not happen automatically – if purchasing wants to be future-proof and remain competitive in the age of Industry 4.0, it needs to adapt its processes, approaches and business models. The future complexity of digitised business processes and the resulting volume of data require intelligent approaches. Furthermore, good data quality is a mandatory prerequisite for the successful digitisation and automation of business processes. Software solutions for the automation of purchasing processes enable process optimisation and operational efficiency.  

Conclusion: process optimisation through automation

It is important to automate purchasing processes to ensure teams are equipped to face unforeseen challenges and seize future opportunities quickly. Digitisation and process optimisation lead to an increase in efficiency, cost reductions as well as flexibility and agility in a complex and challenging B2B world.  

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How the Netfira Platform helps to process csv files automatically

In times of supply bottlenecks and supply chain disruptions, purchasing needs to process large amounts of data in crisis managment of material supply. Due to a backlog of unprocessed documents caused by overdue deliveries, many companies currently use csv files as a means of communication between suppliers and customers. Because processing csv files manually leads to problems, the Netfira Platform enables buyers to process csv files automatically. 

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The background: COVID-19 and war cause supply chain disruptions

The COVID-19 pandemic has caused profound supply chain disruptions. In procurement, these disruptions have manifested themselves in delays and a subsequent backlog of purchase order confirmations that need to be processed. Businesses are reporting a dramatic increase in order confirmations as the ongoing disruption is forcing suppliers to provide multiple order confirmations for each purchase order.  

The result: Suppliers send csv files to purchasing

Due to a backlog of unprocessed documents caused by overdue deliveries, purchasing and suppliers have switched to a crisis management mode. In contrast to the standard process (order-confirmation-delivery), many companies currently use csv files as a means of communication between suppliers and customers. A lot of suppliers use these files instead of sending purchase order confirmations to the purchasing department.  

What is a csv file?

CSV stands for comma-separated values and is a file format for structured data. A csv file enables simple data exchange between software programmes. It is saved as a text file with the extension .csv. It is often used to save tables or databases or to export them from the respective software programmes so that they can then be further processed in spreadsheet programmes such as Excel.  

The problem with processing csv files manually

The use of Excel lists to process purchase orders often means that an already existing semi-automated or automated process is interrupted or even replaced by manual processing. In addition to the challenges created by restricted material availability and logistical bottlenecks, procurement departments usually do not have resources available to handle the tasks of manual data entry and processing.  

How the Netfira Platform helps to process csv files automatically

In addition to the automatic and reliable extraction and processing of data from B2B documents such as invoices, quotes, purchase order confirmations, purchase orders, advanced shipping notices etc., Netfira offers a quick digital connection and automated processing of data formats such as csv files. These csv files can be processed either in parallel to the processing of order confirmations or substitute the processing of order confirmations altogether for the time being. This does not solve the general problem of delivery backlogs and transport bottlenecks. However, Netfira offers a flexible and easy digital solution that supports the supplier and the operational purchasing department in processing and entering data from Excel lists into the respective systems. As a result, the Netfira Platform saves resources and time and prevents errors and data inconsistencies by guaranteeing high data accuracy. 

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