Understand What Digitization Can – and Can't – Do

Digitization is the first step most companies take to improve the efficiency and effectiveness of their supply chain operations. And while it's a good start, automating processes such as procurement, orders, invoicing and payment doesn't in and of itself create value. In fact, it can often lead to doing bad things, only faster.

Take invoicing. Despite advances in technology designed to simplify and enhance the process, it remains flawed. Accounts payable teams still spend inordinate amounts of time and effort processing paper invoices. And current studies show that one in five of these invoices still contains an overcharge or other exception. Why? Because many companies are attempting to tackle the problem through digitization alone. When it comes to invoicing, creating electronic documents isn't enough. In order to improve accuracy, eliminate errors and rework and ensure that only valid and approved invoices reach AP, companies need to combine automation with rules-based processes to ensure that e-invoices, just like their paper counterparts, are validated when suppliers submit them. Good solutions do this automatically.