Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    big data analytics in transporation
    Turning Data Into Decisions: How Analytics Improves Transportation Strategy
    3 Min Read
    sales and data analytics
    How Data Analytics Improves Lead Management and Sales Results
    9 Min Read
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Using Procurement Analytics to Simplify Your Supplier Reconciliation
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Big Data > Data Quality > Using Procurement Analytics to Simplify Your Supplier Reconciliation
AnalyticsBusiness IntelligenceData ManagementData QualityData VisualizationData WarehousingDecision ManagementKnowledge ManagementPredictive AnalyticsRisk ManagementSoftware

Using Procurement Analytics to Simplify Your Supplier Reconciliation

Keith Peterson
Keith Peterson
4 Min Read
SHARE

Ask finance managers to name a necessary evil of their responsibilities and many will cite reconciling goods received against invoices not received (“GR-NI”). The GR-NI issue is time-consuming to manage but not exactly mission critical to finding new business. 

Because of that it often gets demoted to the lowest of priorities.  Not dealing with GR-NI, however, creates financial liabilities and can introduce significant risk to your business operations. 

The primary GR-NI concern is that a supplier delivers goods to the business – but the invoices for those goods never arrive in the Accounts Payable department.  The AP team must pull lists of goods received and compare that to invoices in the AP database to find these gaps.  These provisions may add up over time.  And, without an automated way to monitor and resolve discrepancies, the piles of paper just keep adding up.  These piles have risk – liabilities are incorrectly stated, provisions in the GR-NI account tie-up capital, supplier relationships may suffer, and credits may be missed. 

However, with a simple software-based supplier reconciliation process in place, an organization can automate this cumbersome process to save hundreds to thousands of man hours every year. And with the same system, it can improve its audit processes and even automate the process of supplier communication to resolve issues as they arise. 

More Read

AI and machine learning in fintech
Customers and Banks Priorities Collide as AI Jolts Financial Industry
How Data Analytics can Help you Bolster Your Career Performance?
Where Ichiro Hits: Cluster Analysis
IBM Advances Predictive Analytics for Decision Management
Google and Apache Hadoop: A Match Made in the Cloud

For example, one of our clients, a vegetable processor, works with over 2,000 suppliers and receives nearly 300,000 invoices every year. Using a manual approach to invoice reconciliation, they tied up four AP staff members for a week every month to reconcile dozens of statements from across 2,000 vendor accounts.  Inadequate audit controls, misstated liabilities, and frustration of dealing with vendors chasing invoice status all took their toll. 

Implementing a new GR-NI process needs some focus and targets to be successful. For example, our client focused on critical preferred supplier relationships with high volume to start.  This limited the initial number of suppliers to the 200 most critical ones. 

A simple overview of their process:

  • Creation of a database to integrate financial and orders data;
  • Routine upload of AP ledger(s) to the system;
  • Cross-reference orders with invoices received;
  • Build chart visuals to highlight discrepancies by amount and supplier type;
  • Output supplier lists prioritized for review and contact; and
  • Track results in system to improve overall supplier processes. 

Key elements of solution are:

  • A method to get statements into the system regardless of format and source;
  • Cross-link matching of companies and multi-level parent-child relationships resolved;
  • Automatic generation of statements in PDF and spreadsheet formats; and
  • Electronic report distribution to suppliers. 

To maximize value, look for the operational areas in your company that can benefit from better processes. Tedious tasks like resolving goods received-not invoiced issues may not fall on your radar.  But automating and improving these processes can deliver serious positive impact.  Halo’s platform is an ideal solution for supplier reconciliation processes. 

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

ai for building crypto banks
Building Your Own Crypto Bank with AI
Blockchain Exclusive
julia taubitz vn5s g5spky unsplash
Benefits of AI in Nursing Education Amid Medicaid Cuts
Artificial Intelligence Exclusive News
AI role in medical industry
The Role Of AI In Transforming Medical Manufacturing
Artificial Intelligence Exclusive
b2b sales
Unseen Barriers: Identifying Bottlenecks In B2B Sales
Business Rules Exclusive Infographic

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

The Apocalypse of Abundance: 5 Steps to End the Insanity of Information Overload

1 Min Read
assistive AI and natural disaster
Artificial Intelligence

How Assistive AI Decreases Damage During Natural Disasters

6 Min Read
Using Data
Big DataBusiness IntelligenceDecision Management

3 Pitfalls to Avoid When Using Data to Make Decisions

4 Min Read
embedding business intelligence into software
Business IntelligenceExclusiveSoftware

5 Questions To Ask Before Embedding Business Intelligence Into Software

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive
ai chatbot
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?