Whether in production, customer service or human resources: the use of artificial intelligence in companies is now no longer just a helpful addition, but is increasingly becoming an indispensable tool for innovative companies. Specifically with regard to efficiency within an organization, AI offers great opportunities, especially in procurement. "Integrating AI into procurement not only helps companies work more efficiently, but also in cost reduction and decision-making," knows Patrick Sommer, consulting manager at CNT Management Consulting in Zurich. At the same time, the expert emphasizes that a large number of companies are not yet fully exploiting the potential of AI in their procurement solutions. In contrast, those organizations that address the issue early on benefit from the sustainable stabilization of their supply chain and a significant competitive advantage. Above all, the methods of machine learning and advanced analytics are used here.

Real-time insights about future events

One of the greatest advantages of artificial intelligence is its ability to analyze and compare millions of unstructured data in a very short time. From this, for example, patterns and trends can be identified in a matter of seconds. "As a result, the procurement department knows immediately about alternative sources of materials or raw materials and recognizes where the desired products are available and at what price," explains Sommer. A particularly practical feature is that the self-learning algorithms analyze external data as well as internal data and can thus include information on geopolitical dynamics, current market developments or environmental factors. Through so-called predictive analytics, companies are able to react to events at an early stage, even if they have not yet occurred. For example, the software can identify demand trends or hard-to-sell products. Because artificial intelligence generates these insights almost in real time, companies benefit from significant advantages over their competitors.

Transparency avoids unnecessary costs

In addition to providing information on the most favorable suppliers of the required goods, AI also helps to save costs in other ways. By fully digitizing their supply chain, companies can link all the services and materials they need on one page, creating transparency across the entire procurement process. Superfluous expenditures are thus identified and eliminated. The aforementioned analysis of external factors also makes demand forecasting more precise, optimizes inventories and avoids bottlenecks. Sommer reports, "Many companies don't know about their suppliers' inventories, making it difficult to forecast their own production." With the digitized process chain, companies create transparency about their own as well as their suppliers' inventory situation and can always react agilely to changes. Software such as SAP Ariba, for example, in collaboration with suppliers via the SAP Business Network for Procurement, can bring all this data together and clearly display all supplier relationships. "Common procurement risks such as dependence on a few suppliers or non-transparent supply chains are minimized as a result," Sommer emphasizes. This helps to identify weaknesses in the supply chain and implement adaptations accordingly.

Cognitive assistance speaks all languages

Artificial intelligence also supports the procurement department in the form of cognitive assistance. With the help of such support, procurement employees can, for example, contact suppliers in their respective national language without errors and thus guarantee flawless communication. "Intelligent assistants also help to adhere to current laws and compliance regulations and minimize errors, while simultaneously accelerating processes," says CNT expert Sommer. They can even be used to create contracts: the smart assistants can check and analyze existing documents in seconds and then create templates. By analyzing online data, the cognitive assistant even recognizes and takes into account new regulations and legal requirements.

Source: CNT Management Consulting

This article originally appeared on m-q.ch - https://www.m-q.ch/de/wie-ki-die-beschaffung-revolutioniert/

This article originally appeared on m-q.ch - https://www.m-q.ch/de/modular-optimierte-produktionsprozesse/

Digital transformation in the public sector does not cover the same topics as in the private sector. In addition to the digitization of business processes, the focus is on the development of digital tools for the population. This can facilitate and expand their interactions with local authorities. However, municipalities have limited resources to deal with new developments.

State of digitization surveyed in Swiss municipalities

A digitization survey was recently conducted among Swiss municipalities. It was developed in collaboration with the Swiss Association of Municipalities (SGV), the Myni Gmeind association and the TransferPlus AG opinion research institute. The survey analyzes which topics are currently occupying the municipalities. In the area of digitization, the survey asks about motives and factors for digitization activities. The survey also shows where there is still a need and which measures have already been implemented. It also asks whether digitization is seen as an opportunity or a risk and whether the municipalities see themselves as "pioneers" or "laggards. The questions as to whether digitization is coordinated across the board and whether there is a digitization strategy are also answered.

The results of the survey help the SGV and the Myni Gmeind association, as well as the cantons and the federal government, to provide targeted support for the municipalities in their digital transformation. There are digital solutions for all of these challenges. That is why Myni Gmeind offers support together with several partners.

Results show: Digitization is an opportunity for communities

736 municipalities throughout Switzerland took part in the survey (= 34 % response rate, comparable to 2022). The majority of responses to the survey from the municipalities came from municipal/city clerks (> 60%), 13% from municipal/city presidents. The evaluation shows that around 75% of the municipalities fundamentally see digitization as an opportunity. This is still a positive assessment, although it is stagnating at a high level.

In the area of digitization, only one third of the municipalities see themselves as "pioneers"; two thirds see themselves more as "laggards". The municipalities that see themselves as "pioneers" occupy a position (person or committee) for cross-departmental coordination. Of these municipalities, one in three has already defined an overarching digitization strategy. Among the municipalities that define themselves as "laggards," only 14 percent have an effective digitization strategy.

The motivations for digitization (in %) are the same as in previous years:

	2023	2022	2021
Increase efficiency	77	73	79
Improvement services	70	73
Strengthening communication with population	64	63
Enabling flexible & attractive forms of work	47	49	34
Fulfillment requirements cantons and federal government	49	39	45
Promoting innovative and flexible culture	43	44
New participation opportunities for residents	43	39

 

Hardly any cost savings due to digitization

It is interesting to note that, from the point of view of the Swiss municipalities, the benefits of digitization are not associated with a reduction in costs. Currently, the digitization of administrative processes (49%) and the acquisition of digital tools, including for IT security, are in the foreground. However, digital transformation (developing the culture of employees) is also important for the municipalities. From the perspective of the municipalities, the political will and the provision of sufficient financial and human resources are central to this. Digitization projects are predominantly budgeted on a topic or area basis. The communities see a need for support from third parties in the following areas:

• IT security (data protection, data security and cyber attacks)
• Digitization of administrative processes (eGovernment)
• Further training in administration on digitization topics
• Digital services for the population and the economy
• Digitization of process management in administration

Conclusion: Digitization remains a focal point of community development

Digital transformation has arrived at the management level of municipal administrations. The focus is now more on the human and financial resources required for the transformation, but this is viewed rather skeptically. When it comes to creating the technical prerequisites, the measures focus on the digitization of administrative processes, IT security and digital services for the population and the economy. Thus, the topic of "digitization" remains a focal point in current community development.

Source: www.mynigmeind.ch

This article originally appeared on m-q.ch - https://www.m-q.ch/de/schweizer-gemeinden-digitalisierung-immer-noch-herausfordernd/

In total, Fairtrade Max Havelaar turned over 913 million francs with Fairtrade products in Switzerland in 2022, the organization announced on Thursday. Per capita sales were 104 francs, just one percent below the previous year's record figure.

At the same time, however, the Fairtrade Foundation had to contend with higher operating costs: At just over CHF 10 million, these were 14% higher than in 2021. After deducting these expenses, the operating result was a significant minus of CHF 626,000. In the previous year, the same figure was a plus of CHF 509,000.

High costs for advertising and wages

There were two reasons for the higher costs: First, the organization's marketing costs almost doubled, according to the annual report. According to Max Havelaar, this was due to the need to catch up after the corona pandemic and the brand's 30th anniversary. In addition, the foundation hired more people and had to increase wages due to inflation.

The bottom line was a loss of 947,000 francs. In the previous year, Max Havelaar had posted a profit of 671,000 francs.

After the record year 2021, the organization had deliberately planned for more investments and thus expected a loss. However, this was almost twice as high as expected due to losses in the value of financial assets, the report said.

Fairtrade cotton more popular than bananas

With the repeal of the Corona measures and the home office requirement, there were some changes in the composition of sales at the Fairtrade Foundation. Because people were going to restaurants more often again, sales in the food service sector recovered, according to the statement. But also in the retail trade more products were sold than in the year before.

Alcoholic beverages, milk-based drinks, honey and rice were particularly popular. There was also a growth spurt in Fairtrade cotton products and sports balls. According to the press release, this was due to new products, among other things.

However, consumers were less likely to buy Fairtrade bananas, exotic fruits and vegetables, ice cream, quinoa and Fairtrade gold.

Fairtrade products provide farmers and workers in Africa, Asia and Latin America with a secure income and better working conditions. However, due to the current challenges posed by climate change and regulatory requirements, farms are affected by additional costs, it added. (SDA/swi)

The acronym "PIC" is currently rising in use at the same rate as the desire for what it means: a "Person In Charge". Every company, every organization and every agency dreams of having such a person in their own ranks or vis-à-vis. According to the Oxford English Dictionary, "in charge" means "the person who is officially responsible for ... ", in German, the person who is responsible or takes responsibility for something.

A rare species. Especially when it comes to making decisions - which is often necessary in our industry. But even if something goes wrong, it would be nice if someone would take responsibility for it.

Taking responsibility should be learned

The bigger the company, the more people talk. That is an old adage. However, the more hierarchical or holocratic the organization, the more rampant collective irresponsibility becomes. Yes, you read that correctly. Hierarchical levels are often only assigned responsibility in salary negotiations and holocratic free spaces are rarely filled with responsibility.

And when these two organizational forms collide in the decision-making process, nothing usually works. But beware, it's not as if agency equals cool and holocratic and customer:in equals bullish and hierarchical. Those days are long gone. Many companies have changed rapidly in the last ten years thanks to digitalization and the pandemic, while many agencies are still stuck in their toxic award, bonus, title and hierarchy thinking.

However, persons in charge are in short supply on both sides. Perhaps that is why the acronym PIC has become so popular. And not only in our industry. When things really go wrong in an even more toxic hierarchical organization, as was recently the case at the major bank that no longer exists, then a whole other industry, indeed a whole country, is desperately looking for the PICs responsible for this disaster. And those who cannot simply leave the picture must then regroup and wait for the new/old bosses to make up their minds.

On the one hand, this then affects frustrated employees who have to reapply internally for a position they already hold. Or on the other hand, those whose employer no longer exists, which means they have to suck up to new PICs who were still their bogeymen until March 18, 2023.

But beware, even in holocratic or at least flatly organized companies, PICs are often in short supply. Responsibility is demanded, but then people prefer to take on responsibility only where it suits them. And this has nothing to do with age, as is often rumored. Young people simply want to know the reason, the goal, or the purpose for which they are to assume responsibility. These would be picky PICs.

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* Benno Maggi is co-founder and CEO of Partner & Partner. He has been eavesdropping on the industry for over 30 years, discovering words and terms for us that can either be used for small talk, pomposity, excitement, playing Scrabble, or just because.

The idea for the new visual identity is simple: the customized wordmark is a nod to the foundation of any property - the floor plan. The entire visual identity is based on the floor plan of doorways, as Wanner Immobilien symbolically opens doors for new property owners as well as closes them for sellers.

In addition to a new logo and associated design elements, the overall project also includes the definition of colors and fonts, the imagery, the letterheads, and the newly created claim "Menschlich anders" ("Humanly different"). The appearance is supplemented with a communication concept and a fresh social media feed.

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Responsible at Wanner Real Estate: Carol Wanner, Christoph Wanner. Responsible at Asap | Alder Strässle and Partner: Ramon Alder, Nico Strässle, Ian Spahr, Manuel Eichmann, Cédric Freivogel.

NT-ware is a Canon Group company based in Bad Iburg near Osnabrück. It develops state-of-the-art print and scan management software, such as the uniFLOW Online solution. This is a secure, public cloud printing and scanning solution for businesses of all sizes that facilitates the management of their entire print environment. It is designed to meet the needs of organizations that want to avoid managing local servers, but still control the printing process and benefit from flexible scanning workflows.

ISO 27001 certification for high level of data protection

The demands on information security are correspondingly high. Security breaches can have far-reaching consequences, including financial losses, loss of business and damage to reputation. Therefore, it has always been important for NT-ware to ensure the greatest possible level of security and data protection. ISO 27001 certification now documents that all data protection and IT security measures within NT-ware are subject to structured processes, sound risk management and continuous improvement. The scope of the certification includes design, planning, development, quality assurance, support and operation of the cloud-based print and scan management solution uniFLOW Online. This also includes the corresponding client and server components on site.

Obtaining and maintaining certification

The successful certification was achieved with a wide range of measures and elements, including the following key elements:

• The definition and communication of the company's security policies required in the ISMS framework.
• The inventory of information resources (systems, services, laptops, servers, infrastructure, and staff).
• Risk management (identification, assessment, treatment and monitoring of risks)
• Training for employees and awareness programs

These measures are periodically re-evaluated to maintain certification.

Internationally recognized standard

NT-ware has chosen ISO 27001 because it is not only internationally recognized, but also based on two key principles. First, it always relies on certification by an accredited external body, which creates neutrality and credibility. In this case, the British Standards Institution (BSI) performed the accreditation and audits. Second, certification involves regular assessments instead of one-time activities. The continuous certification process is in line with NT-Ware's ongoing efforts to continuously maintain the highest standards of security and privacy, both in the products they develop and in the way they operate.

Source: Canon

This article originally appeared on m-q.ch - https://www.m-q.ch/de/nt-ware-erhaelt-iso-27001-zertifizierung/

Macroeconomic influences and inflation are actively affecting the purchasing behavior and brand awareness of private households. The latest ServiceNow study, conducted jointly with Opinium Research in March 2023, shows that two-thirds of Swiss consumers are less brand-loyal than they were two years ago, for example because they are switching to cheaper offers due to rising costs.

Since 60 percent of consumers state that they also have fundamentally higher expenses as a result of price increases, their attitude toward price developments has changed. Customers expect companies to recognize and meet their needs. To ensure long-term loyalty, it is important to personalize the customer experience, for example by offering individual discounts, product samples and proactive service. And that pays off: Around four-fifths (84 %) of consumers in Switzerland would be more loyal to companies where they feel they are understood as customers.

"Companies face the acute threat that consumers' previous brand loyalty will fall victim to rising inflation and a subdued economic outlook," said Armgard Eichhoff (pictured), solution consulting director at ServiceNow. "Although customers across industries are becoming more price-sensitive, now is not the time to cut corners on customer experience. Rather, it is currently more important than ever for companies to show their value and invest in a better as well as sustainable customer and employee experience to avoid the risk of price dumping."

Two-fifths of Swiss consumers (41 %) say they are spending more this year than they did twelve months ago, and this is particularly evident among the younger generation of 18- to 34-year-olds (58 %). In comparison, only 25 percent are spending less now and 33 % have seen no change in their spending.

Consumers become aware of the importance of their data

In a time characterized by innovative technologies, consumers are more security- and data-conscious than ever. Companies that do not take security measures run the risk of falling behind in the race for consumer loyalty - across all industries.

The survey found that the security of personal data is now considered one of the most important factors (92 %) when dealing with companies. In fact, data security is on a par with the key factors of problem-solving customer service staff (93 %), customer service response times (92 %) and seamless service (91 %). A look at the age structure of the consumers surveyed reveals that the protection of personal data is extremely important for all age groups. Both the group aged between 35 and 54 with 92% and the over-55s with 93 % are equally security-conscious. With 92 %, this also applies to the group of 18-34 year old consumers.

"Companies must continue to invest in technology to sustainably improve customer satisfaction. Data transparency is crucial here so that consumers can be sure that their personal data is treated with the highest priority and sensitivity. Because without trust in security, the customer experience suffers significantly and thus jeopardizes the important brand loyalty," warns Eichhoff.

Offer omni-channel service for consumers

The survey also shows how important it is for companies to offer an omni-channel service in order to cover the preferences of all customers and thus ensure an optimal customer experience. While traditional e-mail is still the preferred communication channel, chatbots, for example, which are currently rated as "very important" by only 18 percent, offer a good opportunity to use new technologies in a holistic approach. And the trend is rising, because almost two-thirds of consumers (63 %) say they would be more loyal to companies that invest in technologies that offer better customer service.

If we now look directly at individual sectors, we can see slight differences in characteristics despite the uniform choice of communication tools - e-mail, call centers and apps. When it comes to the general customer experience, a good third (39 %) of respondents believe that retail offers the best experience compared to all other industries. Rounding out the top three are healthcare (39%) and consumer technology (26%). For government communications, 16% prefers e-mail. E-mail communication is followed by call center services except for fintech and traditional banking for which apps are in second place.

Focusing specifically on chatbots, solving the problem is considered most important (42 %), followed by understanding questions (36 %), being able to talk to a real person, and fast response times (both 33 %). Ease of use (26 %), security (26 %), and being clearly labeled as a chatbot service (20 %) are also considered important.

"Companies need to understand that a good customer experience should be equally available on all channels. To ensure this, they should rely on networked platforms. This goes hand in hand with a good understanding of the customer and investment in technology. Automated processes in customer service, such as chatbot services, can become a game changer in the future. Although they are not yet being used sufficiently by consumers, the potential is undisputed. Companies are currently investing heavily in this area - and advances in AI mean that their capabilities will continue to grow. There is a big opportunity to promote chatbots within an omni-channel service approach," says Armgard Eichhoff.

Employee experience can influence consumer brand loyalty

An important point that is often neglected in the consideration of the customer experience: the employee experience (EX) also has an impact on the customer experience (CX) and thus on brand loyalty. 90 % of consumers state that when choosing the right company, it is important for them that the employees are treated well. And about two-thirds (70 %) agree that they would be more likely not to work with a company if they knew employees were unhappy.

But how do companies achieve high employee satisfaction? Salary (52 %) is still the top priority. Other important aspects include flexible, hybrid working, training and development, employee benefits and good HR support, as well as optimal technical devices and technical support. In general, brands that deliver on their value proposition maintain their position even in times of uncertainty.

"The results of our study show that consumers and employees alike have high expectations of companies. In order to remain competitive, build strong customer and employee loyalty and ultimately increase brand loyalty, it is crucial to address the needs of employees (EX) as representatives of the company and offer a pleasant working environment. A strategically set up Total Experience is mandatory," concludes Armgard Eichhoff.

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The Study was commissioned by ServiceNow and conducted by Opinium Research in March 2023. The survey asked 13,000 adults aged 18 and over in nine EMEA countries - Germany, Switzerland, the United Kingdom, Ireland, France, Italy, the Netherlands, Sweden and the United Arab Emirates - including 1,000 respondents in Switzerland, about their attitudes towards customer and employee experience.

Swiss companies' need for solutions against cybercrime is great and growing at a fast pace. According to the "Global Digital Trust Insights 2023" of the consulting firm PwC, 73 percent of Swiss companies see an urgent need for action in this area. With the rise of cybercrime as one of the most central top risks, the insurance gap for large-scale cyber incidents is growing nationally and internationally. Helvetia's symposium "Challenges in managing top cyber risks" on June 5, 2023, aggressively brought the acute problems into the public eye.

Hardly sufficient protection against large-scale cyber risks

"It is true that the insurance industry can cover individual risks well today - provided that companies make appropriate investments in prevention and data security," said Martin Jara, CEO of Helvetia Switzerland. "But for major events, which can go far beyond individual attacks with a large number of people affected, there is currently insufficient protection in Switzerland." The central element, he said, must be to build resilience into the Swiss SME economy: no mandatory coverage, but industry-specific prevention to allow financial compensation to continue.

"Triad of Resilience"

Alexandra Arni, Head of ICT at Swiss Banking and Vice President of the Swiss Financial Sector Cyber Security Centre (FS-CSC), explained what such an approach might look like. There, the cooperation of all parties involved is already based on the "triad of resilience," namely prevention, crisis management and damage repair. Hans-Ulrich Bigler, Director of the Swiss Trade Association (SGV), pointed out that the most important pillar of the Swiss economy, namely the approximately 600,000 SMEs, are affected by the threat of cybercriminals at least as much as large companies and operators of system-critical infrastructures. It is therefore important that SMEs deal with the risks and take prevention seriously.

Raphael Reischuk, Partner and Head of Cybersecurity at Zühlke Engineering, picked up the thread of the previous speaker. Reischuk emphatically emphasized that the insurability of cyber risks must be ensured as soon as possible for the benefit of the population, the economy and ultimately also the democratic structure of our society. Reischuk demonstrated how the issue can be addressed technically by means of a data-based system for the real-time collection of cyber risks, which enables an improved global situation picture, promises incentives to reduce cyber risks and rewards policyholders with adaptive insurance premiums.

Administration and science support broad cooperation

The need for a solution to improve the insurability of large-scale cyber risks, as well as the bundling of different competencies and experiences, also met with an open ear among the representatives of the administration and academia present. Florian Schütz, head of the National Cyber Security Center (NCSC) and designated director of the new Federal Office for Cyber Security, emphasized in his remarks how important the contribution of companies is for a cyber strategy in line with national values and principles. Ultimately, however, he said, the business community also has an interest in placing cybersecurity at the top of the agenda as a productivity driver. In any case, he said, on the part of the NCSC, one is pleased that the insurability of cyber risks is increasingly coming into focus. "In the context of the national discussion about increasing cyber resilience and minimizing economic damage, today is the right time to have this discussion," said Florian Schütz.

On the scientific side, business and government can rely on the extensive know-how of specialized start-ups and national institutions such as the Swiss Federal Institute of Technology ETH. Professor Florian Tramèr, an expert in computer security, privacy protection and machine learning in the Department of Computer Science at ETH Zurich, showed how intensively science is currently addressing the topic and is already developing future-oriented models with the involvement of business and government.

Insurance industry relies on improved fundamentals and appropriate risk models

Jean-Philippe Moser, Head of Insurance Sectors at the Swiss Insurance Association (SIA), and David Ribeaud, CEO Specialty Markets at Helvetia, emphasized the industry's willingness to play its part. For example, in the effort to achieve a solid data basis and suitable risk models for better insurability of cyber attacks. At the same time, both speakers emphasized the need for improved foundations to create increased cyber resilience in the Swiss economy and society. Companies that invest in cyber security and prevention will have a better chance of obtaining appropriate insurance solutions.

Chances for political acceptance are good

And what about the political majority capability of such solutions? According to Werner Salzmann (SVP, BE), President of the Security Policy Committee of the Council of States (SiK-S), the chances are good. After all, the SiK-S has long considered cybercrime to be one of the most urgent problems in the current security situation. Any broad-based initiative from outside the political spectrum would be looked upon favorably, said the SVP politician at the cyber symposium in Bern.

Taking into account the positions presented, the SIA and the affiliated insurance companies are developing the necessary foundations in the "Cyber" working group. At a follow-up symposium, the findings will then be discussed with the players and any further steps defined. From this perspective, it is realistic to expect that Switzerland will be able to establish a realistic cooperation between the most important representatives of business, science and government within a reasonable timeframe and with the support of all parties. This would be a globally pioneering measure and a great opportunity for the business location.

Source and further information: Helvetia

This article originally appeared on m-q.ch - https://www.m-q.ch/de/cyber-grossrisiken-wie-steht-es-um-die-versicherbarkeit/

Exactly two decades ago, the starting signal for ConSense GmbH was given. The software developer from Aachen surprised the market with modern software solutions for setting up process-oriented quality management and integrated management systems. The goal was to effectively support companies with a user-friendly, practical solution for the transparent management of the quality management standard DIN EN ISO 9001 as well as any other standards and guidelines.

Full electronic IMS and QM support

Today, in 2023, the company claims to be one of the technologically leading providers of software for process and quality management as well as for integrated management systems. The company itself particularly emphasizes the holistic approach of the products: In addition to intelligent technology for complete electronic support of various management areas, the solutions also take aspects of sustainable organizational development and the active involvement of employees into account. Specialized products also support industries with increased regulatory requirements, e.g. in the transparent management of GxP requirements. More than 750 companies in 30 countries now use ConSense software in over 20 languages.

Continuous development for living, accepted management systems

Over the course of two decades, ConSense GmbH has repeatedly adapted its software solutions to the current needs of the practice through numerous further developments. For example, the integration of an AI assistant into the software, which relieves QM managers of a lot of work in the creation of texts, processes and eLearnings, is completely new. "Our clientele appreciates us for our innovative strength and a strong service mindset, and we are constantly presented with new exciting tasks that inspire us and drive us to peak performance. The goal is always to significantly relieve the burden on companies and organizations through living and truly accepted management systems," says Dr. Iris Bruns from the management of ConSense GmbH. She adds: "We also have a lot planned for the next two decades - our customers can look forward to it.

Source and further information: ConSense GmbH

This article originally appeared on m-q.ch - https://www.m-q.ch/de/jubilaeum-von-consense-gmbh-20-jahre-erfolgreiche-qm-unterstuetzung/

Industry data according to more than two-thirds of companies, errors occur in more than one percent of the total invoice volume, and 20 to 30 percent of all invoices must be processed manually. Therefore, it is critical to improve this error-prone process. Automating invoice management offers a simple and future-proof solution. By using artificial intelligence and cloud technology, companies can optimize their process and reduce the workload of their finance department. Employees then have more time for more strategic tasks. But what challenges do finance departments face in invoice management? When can automation software help?

Challenge #1: Paper invoices and manual processes

According to the American Institute of Finance & Management IOFM the average company still receives 63 percent of its invoices in paper form. This reliance on paper invoices significantly impacts the efficient processing of invoices, with over half of organizations manually processing over 75 percent of their paper invoices. This results in costly and error-prone data entry, delayed payments, missed discounts, compliance and security risks, high storage and retrieval costs, delays in uploading approved invoices to downstream systems, and time-consuming vendor inquiries.

Employees must manually enter and reconcile purchase order, invoice and payment information, making the process tedious and time-consuming. Matching invoice items with data in a purchase order system and manually approving invoices cause problems for 28 percent of accounts payable employees. 17 percent consider entering invoice data to be the biggest challenge, while 15 percent cite invoice coding as a major concern. Additionally, 20 percent of companies have difficulty obtaining supply documents for reconciliation. An equal percentage struggle with processing duplicate invoices when handling paper invoices, according to IOFM's research.

Solution: Modern cloud solutions make it possible to fully automate expense management processes - including invoice processing. Paper invoices are scanned or uploaded to appropriate platforms. This ensures that most fields (invoice number, date, due date, order number, currency or supplier name) are extracted automatically. If the solution has AI technology, the captured data is independently assigned to the desired posting categories, the various documents are reconciled and transferred on time. For this, the solution must be seamlessly connected to the existing system landscape including ERP systems. This not only reduces the time required for invoice processing, but also ensures high-quality and correct bookings, as the risk of human error is greatly reduced.

Challenge #2: Inaccurate or incomplete data

Another challenge in invoice management is dealing with inaccurate or incomplete data. This is due to error-prone data entry by hand and a lack of standard processes for invoice capture. The result: inconsistencies in data entry - especially when paper documents and Excel sheets accompany the process.

Solution: Automatic text recognition and data extraction prevents errors associated with manual data entry. If the solution has AI technology, it can validate the invoice data it reads, match it with vendor purchase orders, and automate line item coding - including categories, cost objects, and VAT. If errors surface (for example, duplicate invoices or data that appears fraudulent or doesn't match ERP data), the platform sends alerts to preset user roles. In this way, it ensures that outliers are checked individually. This prevents policy violations and duplicate payments, and minimizes manual intervention.

Challenge #3: Complex approval workflows

Often the approval process in accounts payable is complex, lacking clarity and consistency. This may be due to differences in organizational structure - for example, in global organizations where each unit uses a different accounting system, independent process, or different software solutions. In addition, the use of paper-based business processes can further complicate approval workflows and lead to delays and errors.

The consequences of complex approval workflows include longer processing times, higher costs due to manual intervention, potential compliance issues, and difficulty tracking invoices. Invoices requiring multiple levels of approval sometimes get lost between systems, which can lead to late payments and missed discounts for early payments.

Solution: An automated solution allows different approval workflows to be used for different entities or types of invoices, for example, vendor-based approvals, cost unit approvals, or custom approvals. Vendor-based workflows assign a default vendor approval upon submission. In this case, the invoice can be automatically routed for review.

Another option is to implement workflows for supervisors with automatic approval. Here, all invoices are automatically approved if they are below a certain threshold. Cost unit-based workflows can also be automated. In more complex cases, a mix of approval workflows can be used, such as cost unit-based approval workflows with supplier-based automated workflows.

Appropriate software also makes it possible to define roles and responsibilities for each stakeholder involved in the approval process. This reduces the risk of duplicate or contradictory approvals.

Challenge #4: Lack of standardization

There is another major obstacle to automating accounts payable: the lack of standardization in the format and content of invoices. Suppliers sometimes use different invoice methods, such as a mix of manual invoice processing and electronic invoicing. This is sometimes compounded by different invoice processing software for different companies. This easily leads to a lack of data consistency, making it difficult to automatically extract and process the required information.

The lack of standardization in invoice processing workflows increases the risk of errors and delays that can impact the entire cycle to payment.

Solution: The introduction of an AP solution (AP stands for Accounts Payable) results in uniform data formats and a reduced number of software solutions that are seamlessly connected. With it, companies are not only able to read any invoice format, but also to receive invoices via different channels, such as e-mail, Peppol or supplier portals. The data is processed directly in the AP solution and routed to the connected ERP system. Additional technologies or tools such as document scanners or workflow solutions are then superfluous. This creates true end-to-end transparency and control. This also eliminates data silos, enabling real-time analysis of spend and more accurate forecasting.

Challenge #5: Lack of cash flow insights

Senior financial managers attach great importance to cash flow analyses. However, many companies struggle to accurately forecast their medium-term cash flow. According to KPMG, only 23 percent of companies are within five percent of their forecasts, with inaccurate data being a major problem for executives and CFOs. Additionally, 34 percent of companies lack visibility into invoice and payment data. In a paper-based invoice processing environment, finance departments lack a comprehensive view of workflow, making working capital improvement difficult.

Managing money ineffectively can negatively impact the entire business, including higher borrowing costs and the inability to invest in growth. That's why 58 percent of companies say they need real-time insights into accounts payable financial data. However, in a paper-based environment, important data falls by the wayside, plus sometimes outdated information flows in.

Solution: An AP system prevents payment delays through automation and end-to-end integrations. In a manual process, it is common for payables to get stuck in invoice receipt, resulting in delayed payments of supplier invoices.

Automation software makes it easy to implement automatic approvals for specific suppliers, giving accounts payable real-time insights into outstanding payments and payment times. With the analytics module, the finance team is able to determine processing times for each supplier in less than a minute. They also receive real-time notifications to easily identify and resolve bottlenecks. Invoices automatically land with the responsible parties to reduce processing time.

In addition, the software improves spend visibility and enables companies to make decisions based on real-time data. It monitors cash flow, tracks payment status, and strengthens relationships with suppliers through timely and accurate payments.

 

Author:
Lars Mangelsdorf is co-founder of Yokoy and leads the German team based in Munich. The Swiss fintech is a provider of an AI-driven spend management platform for mid-sized and large companies. 

 

This article originally appeared on m-q.ch - https://www.m-q.ch/de/rechnungsautomatisierung-fuenf-herausforderungen-meistern/

Ilmac has existed since 1959 and is known in the Swiss chemical and pharmaceutical industry as a trade fair. The live marketing platform takes place every two years in Basel and in a smaller form in Lausanne in the interim year. In step with the changes in the trade fair landscape as well as in the chemical, pharmaceutical and life science industries, the trade fair has continuously adapted. For this reason, those responsible for Ilmac at the MCH Group felt that the time had come to take stock of the brand and its positioning.

With this starting position, the MCH Group contacted Yellow. The goal was defined as strengthening Ilmac's position as a live marketing platform for business, networking, knowledge transfer and trends. As part of a multi-stage process, a brand foundation was developed that encompasses all aspects of an identity, from purpose to brand promise. For this brand personality, the designers developed a corporate design that is suitable for off- and online as well as moving image applications. The result is a modular concept that allows the individual areas and formats under the Ilmac umbrella the greatest possible individuality while still ensuring a visually consistent appearance. The first implementations of the brand creation are currently being implemented in the exhibitor acquisition and online in use.

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Responsible at MCH Group: Céline Futterknecht (Brand Director). Responsible Agency: Yellow.