In the fast-paced business world, the efficient management of vendor expenses is paramount for seamless operations. The end-to-end vendor spend process, known as the contract-to-pay or procure-to-pay process, presents significant complexities for companies.
The complexities include an intricate invoice approval workflow The process involves receiving invoices from suppliers, verifying, matching with the appropriate purchase request, reviewing, and processing the payment. An inefficient approval workflow leads to late payments, delayed goods delivery, and more.
Some challenges also involve inaccurate or missing payment reconciliation. This impact financial accuracy, and regulatory compliance. However, efficient payment reconciliations highlight data entry and invoice errors and identify discrepancies quickly.
Thus, negotiating contracts, issuing purchase orders, handling invoices, and navigating a web of approvals and reconciliations are intricate tasks that demand a streamlined solution.
Audintel’s groundbreaking, state-of-the-art Transportation Spend Management (TSM) application is transforming the landscape of invoice and pay management for transportation services. While traditional spend management platforms promise automation, they often lack domain-specific intelligence. It is needed to validate invoice accuracy, especially when dealing with diverse vendor contracts unique to each industry.
Navigating Challenges in Invoice Validation:
Vendor contracts, with substantial variations across domains, challenge Accounts Payable analysts. For instance, the disparity between a shipping contract and a Software as a Service (SaaS) contract is intricate. It leaves AP analysts without the expertise to assess invoice alignment with negotiated terms. This lack of clarity triggers a time-consuming process involving approvals, data consolidation, and manual validation against contract terms. The complexities of transportation spend calculations further compound the process.
Moreover, manual invoice processing is tedious and time-consuming. The process begins by receiving an invoice from the vendor. It requires manual entry of data into the accounting system. The invoice processing is against pre-defined tolerances. Physical copies of the invoices are scanned and stored in a filing system. Subsequently, the invoices are sent for approval. After approval, payment is possible through secure means.
Hence, a need for automation arises to overcome challenges in invoice processing and validation. Automation benefits the logistics and transportation industry by handling increasing invoice volumes. Further, automating invoice validation has advantages such as fraud detection, duplicate payment reduction, and a faster approval process. It involves technologies like machine learning, OPC, and AI-powered software tools.
Audintel’s TSM Solution:
Audintel’s TSM application addresses the challenges associated with Transportation Invoices by offering a robust platform that automates the entire validation process for accuracy and efficiency. A cost-effective and robust TSM lowers transportation costs and increases operational efficiency. Further, Audintel’s TSM analyses historical shipping data with insightful inputs on negotiating carrier contracts.
Explore how Audintel’s TSM navigates each step of the invoice processing lifecycle as given below:
1. Data Gathering / Invoice Receiving / Data Entry:
- Audintel’s TSM begins by automating receipt of the invoice and data capture process. The application handles invoices efficiently in all formats—EDI, APIs, PDF, and paper invoices, as it integrates with shipping carriers worldwide. Data extraction from invoices with the help of machine learning technology is possible with Audintel’s TSM services.
- Normalizing data across carriers ensures uniformity for clients. Data normalization increases overall business functions. Data collection from e-commerce platforms provides insights into client preferences. The elimination of unstructured data and duplicates helps in standardizing information entry. In addition, it lowers the risk of wrong data interpretation, which is essential for data compliance.
2. Invoice Validation and Auditing for Correctness/Accuracy:
- Leveraging advanced domain-specific intelligence, Audintel’s TSM validates invoice correctness with excellence. TSM algorithms and rule sets are made for the transportation industry and cross-reference invoice details with contract terms.
Additionally, the platform compares invoice data with client Order Management, WMS, ERP, or TMS systems, flagging discrepancies or surcharges for resolution. It helps customer-specific invoice validations with strict controls. Further, clients save shipment costs with Audintel’s comprehensive Line-item Invoice Audit and claim filing process.
- Post-validation, Audintel TSM triggers automated approval workflows, adhering to pre-defined rules and authorization hierarchies. This automated approach minimizes delays associated with manual routing and approval, ensuring faster processing times.
The digital capture of data from paper and electronic invoices is possible through Audintel TSM. It passes through a custom-designed workflow and speeds up the approval process. Invoice processing automation integrates with other accounting systems like ERP and streamlines the approval process.
4. GL Coding:
- Beyond validation, Audintel TSM automates GL coding, categorizing expenses accurately and allocating them to the correct GL accounts. It ensures precise financial recording and reduces errors associated with manual coding. The application integrates with various General Ledger or Financial Systems to automatically post Journal entries.
In addition, there is a review for any transaction that does not align with the set GL codes and cost allocation. TSM helps in timely intervention and error rectification with significant cost savings.
- Audintel’s TSM coordinates with payment systems to disburse funds with swift and accurate payout processes according to approved invoice amounts. This automation contributes to faster and error-free financial transactions. Suppliers get real-time updates about the status of their invoices and timely payments.
Automation of invoice processing streamlines the account payable process. The Managerial team gains more control over internal processing functions and tracks invoices. Further, clients can achieve cash management objectives while strengthening carrier relationships. Invoice processing automation helps in leveraging early payment discounts.
6. Analytics and Intelligence:
- Audintel’s TSM extends beyond transactional processes, offering robust analytics and intelligence features. By aggregating data from the entire invoice processing lifecycle, the application provides valuable insights into spending patterns, vendor performance, and areas for cost optimization.
Business Intelligence (BI) tools manage data, reduce labor costs, and help in effective decision-making. In addition, BI tools offer actionable data for preventing conflicts and scaling down irrelevant information. Audintel’s world-class cloud-based TSM application optimizes all areas of logistics management.
7. Monitoring and Anomaly Detection:
- Shipping disruptions are reduced with the help of Anomaly detection. Automated monitoring helps detect anomalies, which is essential for maintaining core operations. Anomaly detection occurs in real time, and mitigation actions are a part of the operations.
- Audintel’s TSM Monitoring and Anomaly Detection module monitors spend across all modes and detects deviations from regular shipping patterns and costs. It alerts clients to take corrective action, thus eliminating recurring mistakes and fraud. Moreover, it allows shippers to take preventive actions against any shipping delays or shortage of inventory.
Audintel TSM automates traditional invoice processing steps. In addition, it introduces advanced features tailored to the transportation industry. By optimizing transportation invoices, businesses can navigate their growth trajectories with confidence. Audintel provides deeper insights into freight and logistic spending as a technology-first and customer-focused organization.
TSM services seamlessly integrate data, automate workflows, and provide insightful analytics. Audintel TSM offers a comprehensive solution for companies aiming to revolutionize their transportation invoice and payment management processes.
With robust, state-of-the-art TSM services, Audintel helps businesses efficiently manage their complex global supply chains. Companies get accurate information about shipping operations and payments. Further, there is continuous monitoring and management of shipping carrier payments and performance with Audintel TSM services.