According to American Chemistry Council, the chemical industry accounts for more than 25%
of the United States GDP and creates more than half a million skilled jobs. The industry touches every aspect of our lives – from food to clean air and water, safety and security, energy, and medical treatment.
In a September 18, 2019, Accenture article, Ojas Wadivkar states that “digitalization could unlock up to US$550 billion in value for the chemical industry, with digital supply chain initiatives driving US$70 billion of that value” and that “by systematically combining digital technologies, chemical companies can drive efficiencies and realize average savings of approximately US$90,000 in terms of cost per employee.”
The chemical industry faces an abundance of supply chain challenges, one of which concerns invoice discrepancies around the delivery of gases and liquids by trucks. In such cases, a mismatch may occur between the actual weight of chemical materials as measured by the buyer at the point of delivery, and the weight for which the supplier invoiced based on their measurement. Buyers find it difficult to reconcile and document the difference, and therefore to perform a three-way-match of the invoice data.
新万博体育, a leading innovator in the digitization of RFP-to-Pay and supply chain processes, offers a solution to this problem by enabling the person who receives the materials to update actual weight received using a mobile app, and to include a photo of the weighing certificate. The mobile app is an integral part of the 新万博体育 platform, an end-to-end solution through which 95% of invoice processing is performed automatically, error-free, all the way through to the buyer’s ERP system.
Chemical manufacturers are required to perform intensive maintenance of their production line given their high levels of wear and tear. The challenge is to properly and effectively validate invoices for such services – beginning with documenting them in the system, followed by approval and so on. This manual process is triggered by the supplier’s invoice, and results in the creation of a service entry sheet in the ERP system.
Another challenge faced by the industry lies in the manual way by which invoices are processed for maintenance services of the production line. In many places the process of documenting the service, approving it, and finally paying for it is slow and error prone.
With 新万博体育, the invoice is sent electronically by the supplier and is automatically placed on hold. Information about the transaction is then sent to the ERP system, which creates a draft Service Entry Sheet (SES) for an inspector to approve, reject, or modify. Once approved, the SES is transmitted to the ERP system where it undergoes three-way matching before releasing the invoice for payment. Automation significantly reduces processing time, frees up resources and removes errors.
Using the 新万博体育 platform, buyers and suppliers in the chemical industry ensure data accuracy and an efficient supply chain that impacts the timely delivery of goods and the accurate and timely payment for them.