Manual process vs automated process: Which is better?
Despite all of the technology at our disposal and the importance of accurate and complete data, many teams managing large amounts of rebates still rely on manual processes for calculating, accruing and allocating rebates. They often find themselves chasing down errors, reconciling data, and trying to make important decisions based on an assortment of incomplete or inaccurate rebate data. In fact, research has found that procurement, supply chain, and finance professionals are spending almost a third (31%) of their time dealing with inefficient paper-based or manual processes, which is costing businesses on average £1.94m ($2.6m) annually. Just because a process has been executed one way for a long time doesn’t necessarily make it the best option. In order to outperform competition, streamline processes, and ensure accuracy many organizations are turning to digital transformation and implementing various software across all departments. Automated rebate management software is a must for those who want to accurately manage highly complex B2B deals and rebates.
Challenges of manual processes
1. Time-consuming
Many hours are spent taking information from one format and re-entering it into one or more disparate systems or spreadsheets. A survey found that seven in ten finance teams (72%) spend up to 10 working-hours per week, or 520 hours per year on AP-related tasks that could be automated. By reducing the time employees need to complete their work, as well as the number of employees needed on each task, automation translates to more hours focused on doing work that drives profits.
2. Siloed information
There’s often little transparency into who’s doing what, which means even more time is wasted waiting on others to learn the status of tasks. Companies that use multiple systems for their rebate management are often missing the data and documentation, thus, exposing companies to higher risk and costs.
3. Inaccurate data
Manual processes are inaccurate, slow, and unreliable. As a result, it's impossible for you to know whether you can rely on the accuracy of your numbers or know whether the data you're looking at is current. According to Blackline, nearly 70% of leaders said they’d made a significant business decision based on inaccurate financials. Even worse, just 38% of finance professionals—those who are closest to the process—said they trusted the numbers.
4. Lack of visibility
Manual tasks are inconsistent and much harder to track than automated activities. Because you’re not starting with 100% accurate data, the insights you gain from manual processes will be inherently flawed.
5. Damaging your bottom line
According to market research firm IDC, companies lose 20 to 30% in revenue every year due to inefficiencies.
Benefits of automating manual processes
1. Greater visibility
Automation gives a clear and complete understanding as everything is located in one dashboard waiting for you. Data is always up to date and available when you need it.
2. Higher operational efficiency
Since mundane tasks are taken care of with automation, employees can be reassigned to do high-value work, resulting in higher efficiency. This creates greater consistency within teams, reducing the chances of mistakes and information gaps.
3. Reduced time
With faster turnaround and elimination of wasteful practices, automation facilitate time savings. In a matter of seconds, software can calculate values using sophisticated equations that would otherwise take hours.
4. Compliance
With everything streamlined and automated you can be certain you're following a given compliance framework and mitigating any risk. You're also exposing any sensitive information to fewer human eyes, helping you keep your data more secure.
5. Reduces the likelihood of error
As humans we are prone to mistakes and spreadsheets don’t help the matter, it is estimated that around 90% of manual spreadsheets contain errors. With all your data in a central repository you can be sure everything is correct.
6. Better collaborative working
By improving overall efficiency and improving integration between the systems used by different departments, automation makes it much easier for different teams to work together and discuss each part of the deal.
7. Data driven insights
Automated processes generate accurate, detailed reports that ensures everyone has a well-rounded view of any deal before making any final decisions. Nearly half of CFOs (49%) say their organisation’s biggest gap over the past year was the ability to execute with accurate, timely data that drives quick, informed decisions.
To conclude, it is evident that using manual processes for rebate management heightens risk, has a negative effect on the bottom line and deal performance can be compromised. By making the decision to automate your rebate management processes today you’ll be on track to mitigate business risk, increase operational efficiency and boost financial performance.
.jpeg)
.jpeg)