Automation in retail helps process input invoices more quickly and accurately, reduces errors, and optimizes operational efficiency.
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Operational challenges related to the manual processing of input invoices in retail and FMCG companies
In the retail and fast-moving consumer goods (FMCG) sectors, the process of handling input invoices is critically important, as it not only impacts payments but also affects cash flow and the overall operational efficiency of the business. However, with rapid growth and high demand, manual processing of input invoices has become a significant challenge. Below are some of the issues that businesses face:
A large volume of invoices
Every day, retail and FMCG companies must process a large volume of input invoices from various suppliers. With large-scale operations and an ever-increasing number of invoices, manual processing can easily become overwhelming. This can lead to data entry errors, resulting in delays in the payment process and directly affecting relationships with suppliers.
Risk of errors and omissions
Errors are a common issue in manual data entry, especially when the volume of invoices to be processed is too large. Even a small mistake during data entry can lead to discrepancies between the invoice and the purchase order or the goods received. This not only complicates financial management but also damages the company’s reputation in the eyes of suppliers.
High processing costs and time
Manual invoice processing not only consumes a significant amount of time but also requires substantial human resources. Employees must spend many hours entering data, verifying, and reconciling invoices. This not only increases operational costs but also prolongs processing time, affecting the ability to make timely payments. If this process is delayed, the company may face cash flow issues and miss opportunities to negotiate with suppliers.
Challenges in document management and storage
Invoices must be securely stored for extended periods to meet legal and audit requirements. However, searching for and retrieving invoices when needed can be time-consuming and labor-intensive, especially when dealing with a large volume of documents. This not only slows down workflows but also increases the risk of document loss or damage.
Retail Automation Solutions for Input Invoice Processing
Facing significant challenges in manual input invoice processing, retail and FMCG companies are turning to automation solutions as an optimal method to improve performance and reduce errors. Automation not only speeds up processing but also provides additional benefits, helping businesses maintain a competitive edge in an increasingly fierce market.
Process
- Invoice Collection: Invoices from suppliers are received either in paper or digital format and scanned for processing preparation.
- Data Recognition and Extraction (OCR & AI): Utilize OCR technology to recognize and extract information from invoices, such as supplier name, invoice number, and total amount.
- Data Reconciliation: The system automatically compares invoices with purchase orders (PO) or goods receipts to detect discrepancies.
- Invoice Approval: Successfully reconciled invoices are automatically approved through the integrated ERP system.
- Storage and Management: Invoices are stored digitally, ensuring easy retrieval and compliance with legal regulations.
- Reporting and Analysis: The system automatically generates reports and analyzes invoice data to support business decision-making.
Benefits of Automation
Automating input invoice processing offers several key benefits that help businesses optimize their operational processes:
- Increased Processing Speed: Automated systems can handle thousands of invoices within minutes, compared to hours or even days if done manually. This accelerates invoice processing, improving cash flow and timely payment capabilities.
- Reduced Errors: With the support of OCR and AI, the system can accurately recognize and enter data, minimizing human errors. This also includes automatic reconciliation of invoices with purchase orders and received goods, ensuring accuracy and transparency throughout the process.
- Cost Savings: Automation helps reduce costs related to manual data entry and invoice verification. Faster and more accurate processing also helps avoid penalties from late payments or errors.
- Enhanced Data Management and Retrieval: Invoices are stored digitally, making them easily searchable and accessible. This improves data management and compliance with legal regulations.
Success Story: Central Retail in Vietnam
Central Retail has been present in the Vietnamese market since 2012 and has continuously expanded its operations, currently owning 38 shopping centers and 260 stores nationwide. With a vision and mission to become a leading multi-channel retailer, focusing on customers and sustainable development, Central Retail Vietnam (CRV) has strived to maintain its leadership position.
With a large number of customers and suppliers, CRV faced the challenge of processing and reconciling 1.8 million invoices annually, a process that required 75 full-time employees and consumed 180,000 working hours per year. This repetitive and monotonous task posed a risk of increased employee turnover, particularly during peak periods.
To enhance operational efficiency, CRV implemented automation technology developed by akaBot for invoice processing. The akaBot solution seamlessly integrated with CRV’s existing accounting system, enabling quick operations. Repetitive tasks were handled by automated bots, reducing errors. Thanks to the akaBot automation application, CRV saved VND $500,000 USD in invoice processing costs over 5 years and reduced working hours by 90,000 annually.
Automation in Invoice Processing to Enhance Competitiveness
Automation in input invoice processing plays a crucial role in today’s business landscape, especially for companies in the retail and FMCG sectors. It is not only accelerates processing speed and reduces errors but also optimizes resources, cuts costs, and improves management efficiency.
In an increasingly competitive environment, adopting advanced technological solutions is essential for businesses to maintain and grow sustainably. Therefore, companies should swiftly implement automation solutions to boost their competitive edge and more effectively meet market demands.
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
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