Monthly Archives: August 2013

Nipendo: Streamlined Invoice Management for Even the Largest Organization

When we introduced Nipendo last month, a provider of order-to-payment automation software, we noted that they were bringing O2P and P2P to the Mainstream and that they recently introduced rules-based end-to-end invoice reconciliation. In Nipendo’s platform, invoices can come in through the portal, web services, EDI, supported supplier networks, and Nipendo’s own Print-to-Cloud solution. The invoice data is then processed and normalized into the Nipendo system, compared against purchase order data, and validated against a complete suite of rules that include data format validation, vendor data validation, referenced document (orders and receipts) validation, tax validation, quantity validation, amount validation, and total validation. If anything is off, it is pushed to a queue for manual verification or correction. These rules can be custom configured as needed and can include automatic data normalization and completion when the purchase order and / or good receipt document can be identified and the line item data accessed.

When this invoice verification and automation is combined with their supplier on-boarding process, their customers, which include a large number of Fortune 500 and Global 3000 Multinationals, quickly reach the point where:

  • 98%+ of all invoices flow through the system,
  • 99%+ of all errors are caught,
  • 90%+ of all invoices are automatically processed without human intervention, and
  • 80%+ process savings are realized and maintained.

Even their largest multi-national Fortune 500 customer reached this point within 24 months, with 80%+ of all invoices flowing through the system in 12 months. A lot of organizations offer e-invoicing, but not all offer all of the invoice submission options of Nipendo and even less reach the level of processing and automation that Nipendo has reached. It’s an impressive Order-to-Payment (O2P) solution.

Could the Fateful Four Bring Down Your High-Tech or Automotive Supply Chain?

Today, Resilinc announced that leading global supply chains have become dependent on the same small group of sub-tier suppliers – concentrating the risk and significantly increasing the potential for crippling supply chain disruptions. Based on global supply chain mapping data that it gathered over the past year, which analyzed a subset of data from over 600 large and medium suppliers across 2,500+ sites spread over 50+ countries, Resilinc performed a detailed analysis in order to identify specific industry trends that could be used to create stronger supply chain resiliency plans.

This study, which focussed on the analysis of sub-tiers that often hide risks that go undetected by the buying organization, not only found that global supply chain risk tends to be concentrated in certain sub-tier suppliers and localities, but also found that many leading global supply chains, in the High-Tech and Automotive sectors in particular, have become dependent on the same small group of sub-tier suppliers.

In particular, the study found that in the High-Tech and Automotive supply chains, the vast majority of suppliers are dependent on sites that are owned by just four suppliers and that more than 50% of all sites analyzed are located in just four countries: Taiwan, China, the USA, and Japan. Who are these four suppliers that can control the fate of your entire High-Tech or Automotive Supply Chain? Taiwan Semiconductor (TSMC), with an 83.8 B market cap; Amkor Technology (AMKR), with a 926 M market cap; ASE Inc, with a 191.5 B market cap ; and United Microelectronics (UMC) with a 5.2 B market cap. With a combined market capitalization of over 281 B, these fateful four suppliers have a commanding control of your High-Tech and Automotive Supply Chains.

For more information on how visibility can improve your supply chain resiliency, see the IDC Manufacturing Insights on Arguing the Case for Supply Chain Resiliency in 2013 (registration required).

Leaders vs. Laggards in Lean

Earlier this year, SC Digest published a comment from Mike Loughrin, CEO of Transformance Advisors, on Designing a Lean Transformation Program that not only covered four key indicators of success in a lean transformation, but also covered the differences between leaders and laggards that deserve a second look.

According to Mike, the four key indicators of success are:

  • Methodology
    Lean is the systematic elimination of waste by way of the five principles of value specification, value stream identification, flow creation, leverage of pull, and the continual strive for perfection.
  • Measurement
    While lean is the top priority, measurement is second as it is necessary to determine the status of the transformation.
  • Community
    Lean succeeds when best practices are shared and people collectively improve upon them.
  • Coaching
    Lean succeeds when mentors coach novices so that they can grow into future mentors.

So how do you distinguish leaders from laggards? According to Mike:

Indicator Leaders Laggards
Methodology Very systematic in the approach to lean. Adopt a couple of techniques from the lean tool box and apply these hammers to every problem whether or not it mimics a nail.
Measurement Assess all of their value streams and focus attention on those areas that need improvement the most, getting to the root causes of the issues. Focus on the symptoms in an effort to identify quick fixes that may or may not address the root causes.
Community Leaders take an active part in the lean community and are very visible at educational and networking events. Laggards don’t have the time, or money, for attending lean educational and networking events.
Coaching Leaders understand that techniques from the lean tool box are systematic and most effective when people are coached on how to use them correctly. Laggards learn by skimming articles and viewing a few webinars. They have a very cursory understanding.

Lean transformation takes discipline not shortcuts. Great article, Mike!

Thirty-Five Years Ago Today, Trans-Atlantic Balloon Shipments Became a Reality!

Not necessarily a safe or cost-effective reality, but a reality when the Double Eagle II, piloted by Ben Abruzzo, Maxie Anderson, and Larry Anderson, became the first balloon to cross the Atlantic Ocean when it landed in Miserey, France (after leaving Presque Isle, Maine).

Where transportation is concerned, this was quite a feat!

Is Your Financial Performance Lagging?

Even if it is not, you might want to consider BravoSolution‘s and Basware‘s upcoming webinar on Five Untapped Methods to Improve Financial Performance. Hosted by Mickey North Rizza, former Gartner and AMR Research Analyst with over two decades of supply chain experience, you know that this webinar taking place next Wednesday, August 21 @ 11:00 am PDT / 2:00 pm EDT is going to be filled with useful information.

All you have to do is look at the statistics. Research has demonstrated that leading companies that improve their Purchase to Pay processes find operational savings that can exceed 40% and that those who also implement end-to-end Source-to-Settle processes (with smartly linked Sourcing and Procurement) see an average 14.6% increase in operating margin and a 12.8% ROIC (Return on Capital Invested). Given the increasingly low returns in cash-based investments, pursuing this opportunity should be a top priority.