The Rest

Nipendo has announced a new milestone marking the rapid adoption of the company’s Supplier Cloud platform by buyer and supplier organizations, exceeding one million automated procure-to-pay transactions per month. With streamlined onboarding and a range of free to low-cost supplier connectivity options, buyer organizations working with Nipendo are reaching industry-best supplier adoption rates. By automating the entire procure-to-pay cycle through the Nipendo platform, over 90% of all transactions are processed straight-through to the buyer’s ERP system without any manual intervention.

The BBC reports today the the Prompt Payment Code - a UK government backed initiative to encourage big business to pay on time - isn't working. In other news, the sun came up this morning and it is expected to get dark sometime tonight. The Prompt Payment Code provides little more than gentle encouragement to business to demonstrate - in words at least - that they will pay according to terms. I wouldn't criticize for one moment those businesses that have signed up to it. I know that they are sincere in their intentions. But the code doesn't have teeth. It doesn't name and shame transgressors. It doesn't hold business to account if they pay little attention to actually delivering against the promise. And it's hardly surprising therefore that it's not working.

Outsourcing is not a bad thing. It allows companies to focus on their core competencies and let others do the rest. But there are some unintended consequences. When companies outsource processes to low-cost labor, they lose the motivation to modernize the process. Handcraft can be of value. You can argue that a handmade leather purse or a piece of pottery is nicer than a machine-made one. But a hand-processed invoice?! I don’t think you’d find much beauty there. When we outsource invoice processing, we settle for a short-term -fix rather than challenge ourselves to innovate. That’s when BPO becomes detrimental to long-term success. We are settling for cost reduction rather than process improvement.