What are the best practices for using invoice analytics to improve supplier relationships and performance?

1 Identify key metrics and benchmarks

The first step to using invoice analytics effectively is to identify the key metrics and benchmarks that measure your supplier performance and relationship. These may include invoice accuracy, cycle time, payment terms, discounts, compliance, quality, delivery, and innovation. You should also establish the baseline and target values for each metric and benchmark, and align them with your strategic goals and expectations.

2 Automate invoice processing and validation

The second step to using invoice analytics is to automate your invoice processing and validation workflows as much as possible. This will help you reduce manual errors, increase efficiency, save time and resources, and improve data quality and accuracy. You can use various tools and technologies, such as optical character recognition (OCR), artificial intelligence (AI), robotic process automation (RPA), and blockchain, to streamline your invoice processing and validation tasks.

3 Monitor and visualize invoice data and trends

The third step to using invoice analytics is to monitor and visualize your invoice data and trends regularly and consistently. This will help you gain insights into your supplier performance and relationship, identify issues and opportunities, and track your progress and results. You can use various tools and technologies, such as dashboards, reports, charts, graphs, and alerts, to display and communicate your invoice data and trends in an easy and intuitive way.

4 Collaborate and communicate with suppliers

The fourth step to using invoice analytics is to collaborate and communicate with your suppliers frequently and transparently. This will help you build trust and rapport, resolve disputes and problems, negotiate terms and conditions, share feedback and suggestions, and foster innovation and improvement. You can use various tools and technologies, such as portals, chatbots, emails, calls, and meetings, to facilitate your collaboration and communication with your suppliers.

5 Analyze and act on invoice insights

The fifth step to using invoice analytics is to analyze and act on your invoice insights promptly and effectively. This will help you optimize your supplier performance and relationship, reduce costs, enhance quality, mitigate risks, and foster innovation. You can use various tools and technologies, such as predictive analytics, prescriptive analytics, machine learning, and natural language processing, to generate and apply your invoice insights in a smart and agile way.

6 Review and improve invoice analytics processes

The sixth and final step to using invoice analytics is to review and improve your invoice analytics processes continuously and systematically. This will help you ensure your invoice analytics processes are aligned with your business needs and goals, comply with the best practices and standards, and deliver the desired outcomes and value. You can use various tools and technologies, such as audits, surveys, feedback loops, and benchmarks, to evaluate and enhance your invoice analytics processes.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?