Month: January 2020

Top 3 Reasons to Outsource Risk Management

Risk management is a necessary but oftentimes neglected aspect of most business ventures. It can also be a costly, time-wasting proposition, especially in the hands of an amateur. And yet more often than not, many companies assign risk management duties to staff members whose core competencies lie in other areas of expertise. This is because most companies are apprehensive about the idea of putting a significant piece of the business into an “outsider’s” hands.

However, outsourcing risk management functions to a third party is worth it in the long run. Here are three good reasons why you should consider outsourcing your risk management issues as opposed to keeping those tasks resolved within your company:

1. Cost and Time Efficient

Lowered costs are the number one reason, so many companies have embraced outsourcing in recent years. Doing the same thing for risk management follows the same logic: you save salary and benefits expenses by hiring an expert who is not on your payroll.

You will also save a significant amount of time because a professional risk manager doesn’t have a steep learning curve to contend with. A staff member whose primary job description has nothing to do with risk management will need more time to understand the intricacies of the job. An expert, on the other hand, will know the ins and outs of the task that comes with years of training and experience in handling such matters, so they get the job done, and they get it done fast.

2. A Crisis Prevention Plan in Place

The real test of a good risk management plan lies in how quickly your company recovers and how soon it opens its doors for business after a catastrophe occurs. An outsourced risk management professional will help you draw up a crisis prevention plan that is tailor-fit for the unique needs of your company.

While the best scenario is to never have to resort to using a crisis prevention plan, having one in place will give you the peace of mind of knowing you’re prepared should the unforeseen happen. Getting professional advice and having a backup plan are invaluable resources that will protect your business’s future by reducing downtime. A good plan will help you get you back on your feet as soon as possible.

3. Future Risk Projections

We all wish we had a crystal ball to tell us what will happen in the future, especially if it’s something unpleasant. The next best thing is to hire a risk management professional. These experts are trained to put together a risk management assessment by reviewing company contracts for hidden risk exposures. They will analyze your company and make projections of any future risks that might occur within your specific industry. They will then recommend strategies based on an informed decision, studies, and assessments.

Projecting future risks is important because it prepares you for any possible scenarios that will help you control unwelcome scenarios that might take place before it becomes a full-blown crisis.

Outsourcing your risk management solutions might seem uncomfortable, but once you get past any unfounded concerns about data security or confidentiality, it’s one of the best investments you can make for your business.

Managing your business’ finance and accounting on your own is taxing and does not always result in favorable results. With our customized solutions, rest assured that all your concerns would be addressed accordingly and at the same time, it would allow you to concentrate on other important factors vital for your company’s growth. Learn more!

6 months ago No Comments Views

India VS Philippines: Which is the Better Outsourcing Destination?

In the 2014 list of Tholon’s Top 100 Outsourcing Destinations, India and the Philippines ranked first and second place, respectively. The competition between these two countries is getting tougher as India strives to maintain leadership amidst the aggressive strategies of the Philippines’ continuously growing BPO industry.

For companies looking to outsource their business functions, it is important to note the similarities and differences between the BPO industries of these two countries. To find out which one is the better outsourcing destination, let us compare the two according to the following factors:

Manpower

One of the reasons why companies prefer the Philippines over India is due to its treasure trove of highly-educated manpower. In fact, according to the United Nations Development Programme, the Filipino workforce has an impressive literacy rate of 93.4%, whereas the Indians only achieved a rate of 61%.

Language

Providing good customer service to consumers worldwide requires customer service representatives to have excellent communication skills specifically in English. Poor English speaking skills result in difficult conversations, frustrated customers and loss of business for the company. In this case, the Philippines fare better than India because the latter’s British English accent can be thick and difficult to understand.  With English as their second language, Filipinos speak in a neutral accent preferred by most Western countries.

Culture

Filipinos are naturally hospitable, service-oriented and responsive, which are all traits necessary to have in any customer service environment. Compared to India, the Philippines has had closer ties with the Western world for a longer period of time, particularly with Americans. This is already deeply entrenched in their way of life, which is evident in the clothes they wear, the food they eat and even the movies and TV shows they watch. Because of this, Filipinos are able to relate and communicate better with Westerners.

Service Quality

India and the Philippines both offer a variety of offshore services to clients. According to an article on the Oxford Business Group though, pure voice services account for 62% of total BPO revenues in the Philippines in 2013. Initiatives are currently being made to expand service offerings in order to maintain their competitive edge. India is said to be more successful in sales and upselling services. This is said to be the reason for Aegis’ decision to transfer 600 call center positions from the Philippines to India.

However, it all boils down to the quality of service. A press release issued by the Assocham stated that India has been losing 70% of its call center business to the Philippines and Europe. This can be attributed to their problems with staff turnover of 31% among other reasons.

Industry Growth

The Philippines’ BPO sector continues to thrive each year, growing at an average annual rate of 20%. Employment has currently reached 1 million milestones and is expected to increase some more in the years to come. Estimates from the IT and Business Process Association of the Philippines (IBPAP) reveal that the industry generated US$15 billion in total revenues in 2013 and is expecting it to reach US $18 billion in 2014 and US$25 billion by 2016.

On the other hand, NASSCOM reported that India generated US$17.8 billion in 2013, which is a 10.2% increase from 2012 figures, despite losing a significant amount of their business to the Philippines.

Based on these facts and figures, we can see the reasons why India remains at the top of the list of BPO destinations. However, the Philippines is clearly gaining ground and has the potential to reach the top spot in the future.

6 months ago No Comments Views

Top 8 Social Media Trends This 2014

Infinit-O Customer Experience social Media Trends 2014

In the past years, we’ve seen the growth of social media marketing and how it affects customer behavior and engagement. This year, social media will continue to thrive, and in order to get ahead of the competition, businesses should know how to maximize exposure in this ever-growing channel. Here are the trends that are expected to hit social media this 2014:

1. Paid social ads will be on the rise.

The most effective social media campaigns this 2014 will be paid ads, as all major social media platforms (Facebook, Twitter, and LinkedIn) are now offering paid advertising. Social media advertisements are proving to be a lot more effective than traditional forms of advertising. What’s behind the growing success of social ads? Social media marketing has the potential to reach large numbers of people for a little cost and they are quick to catch on for consumers.

2. Social mobile is now mandatory.

Social mobile is now becoming essential. Younger age groups, in particular, are logging into their social media services via their mobile devices. The rise of mobiles and their almost universal use means that optimizing your social content for mobile is vital. This year, companies should make sure their blogs are viewable on mobile devices by using responsive templates. Visual content such as images and videos need to be easily viewed on smartphones and tablets.

3. Visual social takes center stage.

Visual social content is now a serious contender in social media marketing. With the rise of Pinterest and Tumblr, it’s going to become increasingly important to produce content in visual form (whether they are infographics, images with text overlay, or pretty quote graphics). Slideshare Mobile and Path will also continue to grow. These social networking sites will become an integral part of retailers’ marketing strategies.

4. Videos, particularly micro-videos, are in.

Videos should continue their upward ascent in the social media marketing toolbox hierarchy- specifically, short-form videos. YouTube shows no sign of fatigue yet for brands, the best promises come from the rise of applications such as Vine (with 6-second video capabilities) and Instagram (with 15-second video capabilities) complete with filters and integration within Facebook. More companies embrace these short videos as quick, inexpensive, and efficient ways to tell their brand story.

5. Google+ is the new superstar.

With over half a billion users and growing, Google+ is now becoming a vital component in SEO, social media marketing and content moving. Google+ has bigger ownership in terms of search power than Facebook and it is one of the most powerful social forces on the Internet today. Google+ creates a strong community that allows you to use your brand and identify consumers who share an interest in your products. Promoted posts are the future of Google+ which makes more companies experiment and expand their presence on the platform.

6. Companies will experiment with Snapchat.

Companies have an appetite for so-called “ephemeral” networks like Snapchat, where content literally vanishes seconds after being received. As content on the major networks becomes more corporate and commodified, Snapchat and services like it restore some of the fun and spontaneity to social media. With the recent launch of Snapchat Stories, brand marketers now have an opportunity to ask customers to share their stories or interact with them, which would increase engagement and promotions.

7. LinkedIn will strengthen its position as a B2B market player.

LinkedIn will emerge as the primary player in the B2B market. Today, it has 238 million users and is the #1 social networking site for professionals. LinkedIn has managed to position itself as one of the largest sources of content curation and generation for professionals with the launch of its Influencers program. This means that the advantages of being on LinkedIn will be massive for B2B marketers. LinkedIn will become the most important publisher. It will become a premium destination for industry news, and organization needs to take part in that ecosystem.

8. Twitter takes over.

Facebook is a promising social media marketing outlet and it still has its value. However, Twitter is trending to take over many different marketing efforts. A study by Pew Internet & American found that more and more teenagers were shifting from Facebook to Twitter and Instagram, in great part “because there is less drama”. Twitter is expected to soar above other social media sites. Many companies already use Twitter to build a network, re-distribute content from their websites, and create a personal brand.

Consider these trends your guide as you create your social media strategy this year. We can also help you through our social media outsourcing services. You can learn more about it here

6 months ago No Comments Views

What are the essentials of a good business process outsourcing contract?

I have always advocated investing in time to carefully develop and negotiate your business process outsourcing agreements. They can be a powerful mechanism for promoting accountability, efficiency and mutual success.

I am not a lawyer and would never attempt to dispense with legal advice. But I have been involved with enough outsourcing engagements to know what a typical manager should keep in mind during this phase of the outsourcing lifecycle. And having your agreements reviewed by an attorney is a must.

Most contracts contain four major parts – the master agreement, operating principles, Statement of Work (SOW), and Service Level Agreement (SLA). For me, it has always been easier to develop these in reverse order or, as Stephen Covey suggested, ”begin with the end in mind”.

So let’s begin with the SLA. The essential elements of the SLA are listed below:

  • Start and end dates of the service
  • Schedule for reviewing performance
  • Data to be used in measuring the service level
  • Required levels of service
  • Measurements to be utilized
  • Measuring period
  • The minimum quality of work
  • Provisions and penalties for over- and underperformance

These components are pretty basic, but it is surprising how often some are overlooked.

One final comment on SLA’s, I believe it is a good idea for the client company to explain why the SLA’s are important to your business and/or your clients. This level of understanding will help create the appropriate level of urgency from your partner.

The other components of business process outsourcing contracts are listed below.

Master contract

  • Defines overall legal arrangement
  • Codifies operating rules
  • Provides legal protections
  • Price/fees
  • Services
  • Terms
  • Obligations
  • Trademarks and copyrights
  • Trade secrets and intellectual property protection
  • Ensuring the security and privacy of your data
  • Applicable Law
  • Responding to a vendor that fails to perform its duties
  • Termination of relationship
  • Indemnifications and warranty
  • Confidentiality
  • Force Majeure
  • Conflict resolution
  • Term expiration and renewal
  • Other notices

Operating principles

  • Define how parties will work together
  • Logistic of engagement
  • Handoffs
  • Reporting protocols
  • Governance procedures
  • Work orders/methodology for scheduling work
  • Work forecasts
  • Support processes – problem resolution, etc.
  • Communication plan
  • Conflict resolution
  • Change management process
  • Performance measurement process
  • Disaster recovery
  • Exit strategy
  • Security plan

Statement of Work

The statement of work is so important that I devoted a previous blog to it.

As a final check, the contract must clearly describe:

  • The scope and nature of the engagement
  • Roles and responsibilities of the client organization
  • Roles and responsibilities of the vendor organization
  • Metrics for evaluating performance
  • Recourses in case things do not go as expected

I hope you find this information helpful. Feel free to comment on things I may have missed.

6 months ago No Comments Views

5 Outsourcing Models Available for Your Business

The N+1 Theory suggests that there is always one more of everything. Most of the time, this is true. But there are also cases where in the +1 in the theory could provide better results. Simply take the case of finance and accounting, where the old methodologies employed by companies such as manually inputting the numbers and figures for each of the employees’ corporate finances could be definitely exceeded by its +1, which is to engage in finance and accounting outsourcing. By doing so, your company will be saved from the troubles of committing mistakes in calculating employee salaries and deductibles.

Finance and accounting outsourcing covers all areas within that specific department, including general accounting and bookkeeping and accounts payable services and accounts receivable services. It is suggested in an infographic published in Focus that both billing and accounting aspects are two of the processes that were initially outsourced to offshore solutions providers. When these administrative tasks are done manually, it definitely paints a mental picture of a tedious work process. To lessen the drawbacks of employing old and manual methodologies for the finance and accounting aspect of the business, it is highly suggested for your company to seek the assistance of an expert – a finance and accounting outsourcing solutions provider.

With the number of outsourcing companies that provide finance and accounting services today, potential clients will no longer have a hard time looking for the outsourcing provider that is fit for their businesses. There are existing outsourcing companies that offer boutique services that will be tailor-fit for your company’s processes.

Once you have identified the accounting process that you want to delegate to an offshore team, it is best if you can also identify which business outsourcing model is most suited for your business’ needs.

  • Staff Augmentation – This model allows companies to add contractors or temporary staff to a team once in order to meet the demand. In this model, the company may have complete control over their staff members and daily work
  • Project-Based Outsourcing – From the name itself, this model is on a per-project basis wherein companies outsource an entire project to a solutions provider as the latter acts as a partner to the client.
  • Out-Tasking – A shortage or cost of skills necessary to conduct a task may happen, which is why companies identify the skills – those that can be separated from the general process – and look for an outsourcing partner who can provide them and perform certain functions.
  • Managed Services – The business model that usually spans over a long period of time and is driven on a measure of value based on defining the requirements and the performance criteria basis. This is the usual model applied by large enterprises and those companies with multiple clients.
  • Build-Operate-Transfer (BOT) – In this model, the solutions provider operates the business over a period of time and then later on transfers the operations to the client.

All business models mentioned above are quite prevalent in the outsourcing industry, however, it seems that preference for both Project-based Outsourcing and Managed Services are increasing.

Before outsourcing business model, it is best to identify which among these business models are suited for your company’s needs and operational duties because once you have figured out that your current business model is not working, it is quite challenging to transition from one model to another.

About Infinit-O

Infinit-O is a outsourcing solutions provider that caters to both small and medium-sized enterprises (SMEs). Among the services being offered by Infinit-O are general accounting, accounts receivables and accounts payables.

Infinit-O assists their clients in identifying which outsourcing model is best for their business. This has helped their clients in the United States, EMEA and APAC fully maximize their outsourcing partnership.

6 months ago No Comments Views

9 Blogs Every Accountant Should be Reading – Infinit Accounting

As professional accountants, it’s important to be kept up breast on the latest news and information about what’s new in the industry. Getting a different view and reading about thought-provoking insights on topics ranging from auditing, fraud, tax accounting and regulations will keep you on your toes and help you make informed decisions in the workplace.

Here’s a list of 10 must-read blogs by experts, associations, former college professors, and members of professional networks that are geared specifically to provide accountants and auditors fresh insights and updated news and regulations on all matters accounting-related.

Get Ahead in Business with Finance and Accounting Outsourcing | Infinit-O

1. Accounting Coach

If you need straightforward, no-nonsense guide on all your accounting questions, the Accounting Coach is an excellent resource. It houses info that dates back to 2003, and has a wide readership of over 80,000 newsletter subscribers and 14,000 Facebook fans.

2. Accountant By Day

Kellen, the woman behind this popular blog, writes musings about accounting, personal finance, and everyday life of an auditor and tax accountant. Her blog used to be called AccountingElf.com, where she wrote about her experiences as an accounting student.

3. Accounting Principals

An overview of all accounting career-related topics, including helpful tips on how accountants can leverage social media to boost their careers, job reports, updated news, among others.

4. The Accounting Onion

The tagline succinctly sums what the blog is all about: “peeling away financial reporting issues one layer at a time”. Tom Selling holds a PhD and CPA license and is a former Accounting professor with a solid academic background and author of numerous books. He finds blogging the perfect platform to educate and inform.

5. Bloomberg BNA Accounting Blog

Comprehensive coverage of topics ranging from accounting, taxes, business and auditing.

6. AccountingWEB blogs

If you don’t have time to sift through the internet for accounting blogs, this is a great selection of useful blogs and websites that focus on accounting-related topics, all compiled in one page.

7. Accounting Tomorrow

This blog covers news and articles about the accounting profession and is a useful resource for current and aspiring CPAs of all levels. There’s something to be offered for various accountants here, regardless of experience or lack thereof.

8. AICPA Insights

This is a straightforward accounting blog with with news about the industry, plus various way to maintain productivity and creativity in the workplace. If you’re an accounting professional who’d like to share your thoughts about the topic, you can apply as a guest writer for the site.

9. Accountex Report

Teach yourself about cloud management and other new accounting trends with the Accountex Report, and transform your processes quickly and efficiently.

10. CPA Practice Advisor

This is one of the most most popular technology and practice management resource for accounting professionals. Get the latest news about payroll, tax, and accounting from several experts in the field.

Want more blogs to follow? Check out our other post, 10 Must-Read Blogs on Financial Management.

Do you have any accounting blogs in mind that we missed in this list? Share them with us in the comments below!

Small businesses are making their ways into the commerce through some trials and errors along the journey. While budget is somehow limited among them, know that our services are reasonably priced, ensuring that you can reach your goals. Outsource your needed facilities and we’ll gladly assist you with all your concerns. Learn more!

6 months ago No Comments Views

Should You Outsource? 5 Myths, Facts, and Figures on Outsourcing

Outsourcing has become a popular method of doing business. However, there are still some who are skeptical about its benefits for businesses.

In an effort to clear things up, we have listed down some of the most common myths about outsourcing with explanations on why they are simply not true, and other facts about outsourcing.

Myth # 1: Only large-scale businesses benefit from outsourcing.

Fact: People get this misconception because they see many multinational corporations that have entered into outsourcing contracts. However, the truth is that even small businesses can benefit from it.

For instance, small businesses that have very little to no space in their office to house employees will benefit from just hiring freelancers who can do their work at home. Technology has made communicating with workers from all over the world easier.

In an article for Entrepreneur, Laura Lee Sparks, owner of a small business called Legal Marketing Maven, says that more small businesses are outsourcing tasks nowadays and that “by outsourcing the day to day back-office tasks, the business owner has more time to focus on generating income.”

Myth # 2: Most companies only outsource to reduce costs.

Fact: There is no doubt that one of the driving factors for the decision to outsource is the reduction in costs. In fact, in the beginning, this was the main reason why companies choose to outsource. One survey supports this notion saying that 44% of its respondents outsource in order to reduce costs. However, it’s important to note that those who focus solely on cost fail in the end.

Other top reasons for outsourcing include gaining access to resources unavailable internally (34%), free up internal resources (31%), improve business or customer focus (28%) and accelerate company reorganization or transformation (31%). In the end, aside from cost reduction, what outsourcing really does is help businesses become more efficient.

Myth # 3: Outsourcing only means call centers.

Fact: Call centers to do form part of what outsourcing can provide in terms of customer service. However, customer service tasks are not the only functions that can be outsourced. In fact, studies show that 70% of companies outsource one or more of their strategic business functions.

The top tasks currently being outsourced are bookkeeping, social media marketing, payroll, administrative support, research, and marketing. However, IT remains the most outsourced activity accounting for 60% of all tasks being outsourced.

Myth # 4: Outsourcing means losing jobs.

Fact: In order for a business to be truly efficient there must be higher final output with less input. That’s what outsourcing brings to the table. By outsourcing certain parts of the business to other countries, for example, companies are actually able to provide jobs and help the economy of those nations.

A great example of this would be the growth of the Philippine economy brought about by outsourcing. The country’s BPO industry now employs about a million people and has made the country the second top outsourcing destination in the world.

Myth # 5: Outsourcing is a one-way street.

Fact: Some business owners are hesitant to outsource out of fear that it will lead them to lose control of their business in the future. That should not be the case. In fact, a successful outsourcing contract is built around the premise of a partnership between the client and the service provider. There must be a genuine commitment between the parties to work together in order to achieve business goals. The key here now is in finding the right partner.

The bottom line is that outsourcing can provide many benefits to businesses of all sizes. The important thing to remember though is that you must do as much research as you can to figure out if it will be beneficial to you and if so, find out what you have to do to make it a success.

6 months ago No Comments Views

Struggling Outsourcing Companies Attractive Targets for Acquisition

The U.S. recession has squeezed onshore outsourcing firms’ revenues. Most are experiencing dwindling client pools, lack of access to credit to finance operations, and fierce competition from offshore outsourcing providers. This makes them attractive targets for organizations seeking to increase their presence in the business process outsourcing (BPO) arena.

This is exactly the opportunity Philippine-based company Ayala Corporation has been waiting for. Recently, the company acquired bankrupt US-based On-site Sourcing, Inc. for $9 million. In an interview with BusinessWorld, Ayala Corporation chief financial officer Rufino Luis Manotok said “The company will focus on investing in the BPO industry. While its growth rate might slow down, the industry will still grow”.

Ayala’s move to buy the bankrupt Virginia-based firm seems to be a wise decision. KPMG, an audit, tax and advisory firm has just released its list of “locations to watch for next outsourcing boom”.  Two cities from the Philippines made it to the list, Davao and Iloilo.

In fact, according to KPMG the 31 cities cited in their report will challenge current well-known outsourcing locations in India and China. Emerging outsourcing destinations in the Asia-Pacific region are attractive offshore destinations for their lower costs, young and educated talent pool, and government incentives.

It’s now up to the local BPO industry to capitalize on their strengths and seize possible acquisitions that could further strengthen their foothold in the offshore market and expand market share.

On another note, India’s global IT-BPO trade body NASSCOM reacted cautiously on US President Barack Obama’s remarks against outsourcing saying US companies had benefited from outsourcing since 50% of their business is overseas.

NASSCOM president Som Mittal bashed on comments blaming outsourcing for the increase in US unemployment rate, citing the latest US state department data on employment which proves job losses in construction, retail and manufacturing were higher than in services, especially in IT. “Compared to other sectors, job losses in the US tech sector were 2.2 per cent as against the overall unemployment rate of 7.2 per cent. The US administration will not do anything that would harm its industry or economy, which is driven by the technology leadership its companies enjoy,” says Mittal.

6 months ago No Comments Views

Tata Consultancy Services (TCS) Diligenta’s Future Looking Up

With a recent acquisition and two new contracts signed and another two possibly in the works, TCS (NSE: TCS.NS) UK subsidiary, Diligenta, is expecting a positive run for the months ahead.

Indian company, Tata Consultancy Services, Ltd. (NSE: TCS.NS) recently acquired Unisys Insurance Services (UISL), from US-based worldwide IT company, Unisys Corporation (NYSE: UIS).  UISL served as the UK business process outsourcing services arm for the UK life and pensions industry.  The transaction was finalized on the 1st of September.

On the same day, Diligenta announced that it has won two major life and pension contracts; the first is with the Phoenix Group, which is an extension to an original agreement with the company, and will extend the contract until 2018.  The second is a new contract signed with Old Mutual International.  Both contracts are expected to generate 250 million pounds in revenue in the UK, bringing the number of policies Diligenta administers to 5 million from 3.6 million currently.

This is not bad considering that Diligenta was set up four years ago in 2006.  The contract wins boosts the company’s position, positioning it as one of the leading providers within the UK’s life and pensions BPO market, where TCS (NSE: TCS.NS) is the second largest insurance business process outsourcing provider in the UK, second to Capita.

Not only that, but on the 3rd of September, news broke out that at least two more prospective clients have approached the company for potential outsourcing contracts both of which are estimated to be worth more than 100 million pounds each.

“The cycle time for deals to materialize in case of Diligenta is six months to a year, especially for similar deals. So, in the next 12-18 months, we will have something to share. But winning these deals validates our strategy,” said Phiroz Vandrevala, Diligenta chairman and TCS (NSE: TCS.NS) executive director.

With the current contract wins, Diligenta now has three clients since its acquisition: Phoenix Group, Old Mutual International, and the controversial NEST-PADA deal.  The latter is a contract won by TCS (NSE: TCS.NS) on the 2nd of March this year for 600 million pounds.

Based on the recent developments, TCS (NSE: TCS.NS) officials are now forecasting that Diligenta will be able to break even for FY2011.  Diligenta will also be looking to get more deals from the UK government related to pensions and insurance.

According to Mr. Vandrevala, “the U.K. government very clearly understands and realizes that for the economy to grow; inward investment is a question of their survival.  I do not believe they will do anything to upset their applecart in any form or manner.” The statement is referring to the previous fuss that the UK government had generated following the UK elections which had placed the NEST-PADA deal in jeopardy.

Ultimately, it seems that 2010 may be the year TCS (NSE: TCS.NS) can do no wrong.

Author: Audrey B.

6 months ago No Comments Views

Improve Buyer-Seller Relationship With Purchase Order Matching and Entry

In an age of customer, purchase order matching and entry have high error rates and customer complaints go unanswered for weeks. The typical ways for improving buyer-seller relationship – process rationalization and automation – has not yielded the remarkable improvement companies need. Particularly, huge investments in IT resulted in poor results – mostly because companies tend to make use of technology to automate hoary ways of improving business performance. They place the current processes intact and use PCs only to get faster results.

But speeding up is not a handy solution. You need to address all your basic needs. One way to improve purchase order matching and entry is to help examine all processes more professionally, but a better option is to avoid all the variations at first. You have to set up an “in-voiceless processing”. At this moment when the purchasing department places an order, it places the information into online record. This department does not need to mail a copy to everyone in the organization. When the supplies come, you need to check your records if they match an existing purchase order. If it is matched, you must accept them and enter it into your PC.

In four different types of purchase order matching and entry levels, you must:

  1. List the products you want to send;
  2. List the quantities of a single product that you want to deliver to your business in a series of consignments, usually on a set deadline;
  3. List products that you want to ship straight to your buyer. The seller sends you a receipt, and you send a bill to your buyer; and
  4. List the numbers of a single product that you want to deliver straight to your buyers in a series of consignments, generally on a set deadline. The seller sends you a receipt and you send a bill to the buyer.

Another way to overcome those performance deficits is to focus on three levels of relationships:

  • Adversarial: This approach designs dynamic power management strategy. It is the level where buyers drop sellers even on the last bit of a discount. Focusing specifically on cost at this level is very important for both.
  • Barometric: In global business, Barometer level refers to an indicator about the fluctuations in economy. At this level, both of you has to check the atmospheric pressure (business atmosphere) and fluctuation in sales taxes. Although it is very close relationship but still you need to develop a trustworthy relationship with one another. Normally it is a short-term contract but the results are long-term.
  • Complementary: This level shapes long-term business relations. It is where true bonding or integral partnering occurs. Both of you should have a mutual level of trust and a proper understanding of your values and needs. In complementary level, efforts are made on both ends to help get exactly what is required.

Nowadays business professionals are way too busy negotiating with suppliers for maximum discount, overseeing global agreements and making decision on selection. In such situation, most prefer third party services. These include trained professionals to help you in overcome those patchy areas: creating list of purchase order, managing procurement, developing a strategy for detailed accounts information, entering funds and recording other vital required information. A perfect purchase order matching and entry would certainly improve your company’s performance. Bottom line: A professional accounts payable team is a must to improve buyer-seller relationship.

6 months ago No Comments Views

Newsletter

Subscribe to our emailing list and get notified of the top stories on the web.

Scroll to top