CASE STUDIES
Procurement Made Easy 

Background 

Procurement is the act of obtaining goods or services, typically for business purposes. Businesses solicit services and purchase goods, usually at a relatively large scale.

A typical procurement process involves the following steps

  1. Purchase Order processing: Buyer creates the purchase order and sends to supplier

  2. Order Processing: Processing the order and fulfill the order and inform Logistics partner for delivery

  3. Delivery: Logistics partner picks the goods from supplier warehouse and sends to buyer

  4. Goods receipt: Buyer receives the goods in their premises and confirms the receipts of goods to supplier

  5. Invoicing: Supplier prepares the invoice and sends to buyer

  6. Invoice verification: Buyer verifies invoice against Purchase Order and Goods Receipt

  7. Payment: Buyer processes the payment to supplier’s bank based on their payment terms

In any procurement process there are at two least parties; a buyer and a supplier. A common third member is a logistics provider who takes care of delivery fulfillment.

The Problem 

1. Slow invoice processing time

Manual routing, processing, and a high turnaround time for approvals slows down the procurement cycle and makes it difficult to capture early payment discounts, leading to late payment penalties, which can  damage your supplier relationships.

2. Reduced accuracy

Risk of error is inherent in any process involving paper and manual data entry. This is critical because of its impact on working capital and the fact that transactions are subject to scrutiny by external audits for regulatory compliance.

3. High costs per invoice

Processing errors require resolution, which drives up the cost per invoice and impedes employee productivity. The cost of storing physical copies of invoices and purchase orders (POs) in the office or in off-site warehouses can also add up quickly.

4. No visibility to order status

Orders could potentially pause at any step of order processing. It will be difficult to resolve the obstacles quickly and move the order without end-to-end visibility.

5. Lack of spend visibility

Quick access to information on whether an invoice has been received, processed, or paid brings a level of stability, control, and oversight that is absent in a manual system. Visibility also makes it easier for your company to assess P2P operations, develop the necessary strategies for improvement, and provide a single source of truth (SSOT) to support the decision-making process.

6. Difficult data retrieval

From audits to vendor inquiries, finding information quickly can be virtually impossible when invoices and POs are stored in multiple locations and often retrieved manually.

Telligro Ubix Solution 

With Telligro Ubix you can connect your internal operational applications to your business partners' applications; thus, eliminating all manual data entry tasks.

  1. Purchase Order processing: PO is generated in buyer’s ERP. It is immediately picked up by Telligro Ubix connector and sent to our platform.  This will trigger the process automation layer and trigger the Order Processing activity in supplier’s ERP.

  2. Order Processing: Sales Order & Delivery Order are created in supplier’s ERP and Delivery Order will be sent to their logistics partner's system for processing. In the event the PO exceed the credit limit set for the customer a message is triggered to the person-in-charge to approve /reject, while the process is paused. Once the response is received the flow will continue based on the response.

  3. Delivery: Logistics partner receives the Delivery Order in their system and perform the necessary action to fulfill the order.

  4. Goods receipt: Buyer issues Goods Receipt in their ERP and that will be transferred to supplier 

  5. Invoicing: Upon receiving the Goods Receipt notice, the supplier prepares the invoice, which is transmitted to buyer’s ERP.

  6. Invoice verification: 3-way verification is done at buyer’s ERP

  7. Payment: Buyer processes the payment to supplier’s bank based on their payment terms

 

With Telligro Ubix, your procurement process becomes seamless, error-free and effortless!

Benefits of Telligro's Ubix Solution 

No more delays. The moment you create your Purchase Order in your system, it will be picked up by Telligro Ubix connector to kick-start the process flow. 

Improved Accuracy. Data is digitally captured and no human re-key errors are caused during processing. 

Reduced cost per invoice. No more back-office work at either side, thus speeding up the process as well as saving money. An error-free data also saves money from resolving issues due to data entry errors.

Human Loop . Human loop can be added to quickly decide and move when a human decision is required. For example, a credit limit exceeds approval for a PO.

Visibility to every PO. Telligro Ubix's dashboards can tell you the exact position of each PO and you can set alerts if anything is stuck at a particular step beyond a threshold period.

Traceability for every transaction. Telligro Ubix's ledger provides easy retrieval of transactions for audit or other inquiries.

Process improvement. Telligro Ubix provides you with insights to fine tune your procurement process based on your past transactions.