PROACTIS Benefits

Business Benefits delivered through PROACTIS Spend Control:

Firm financial savings

Firm “cashable“ savings are derived from a number of areas:

  • Rationalisation of supplier base and renegotiation of contracts
  • Reduced usage of temporary staff, especially within Accounts Payable
  • Early settlement discounts
  • Reduction in duplicate and incorrectly paid invoices
  • External audit charges
  • Postage costs

Tightened controls and enhanced accountability

PROACTIS provides a transparent framework of control to all procurement activities. As such it ensures that tight control is maintained on all expenditure and increases accountability of all individuals. This is achieved through:

  • Employees are only able to purchase goods and services that are deemed applicable to their role or function in the organisation, and only from preferred and recommended suppliers
  • Employees are only able to code to nominal codes that they have access to
  • PROACTIS is able to manage “commitments” at four levels: Soft, Hard, Accruals and Actuals
  • All approvals routing is pre-defined.
  • Staff are aware of what they have purchased and always have visibility of where those purchases are within the procurement cycle.
  • Highlight originators and suppliers that are circumventing the agreed purchase processes
  • Account visibility provided through the PROACTIS Plaza and/or dashboard-type reporting

Improved relationships with stakeholders to the procurement process (staff, managers, suppliers, etc.)

All staff involved in procurement activities gain through application of PROACTIS Spend Control:

  • Originators are able to efficiently purchase items that they need to fulfil their role in the organisation and are not swamped by unnecessary information
  • Budget Holders gain greater accountability of budgets for which they are responsible.
  • Accounts Payable see a significant reduction in wasted administrative activities (e.g. entry of invoices going into query, photocopying invoices being sent out for authorisation etc.)
  • Procurement Staff can similarly dedicate their time to tasks that they are trained to do namely strategic sourcing, contract negotiation etc.
  • Executive Staff similar to budget holders are able to have real-time information across all areas of their responsibility.
  • Suppliers who have been selected by a PROACTIS client can expect improvements to spend values and payments made on time, assuming that appropriate invoices are sent and delivery of agreed KPIs or SLAs.

Process efficiency savings

PROACTIS overcomes the common paradox facing organisations, namely it is able to streamline all procurement activities whilst increasing the control applied without introducing any bureaucracy. The greatest process efficiency gains are appreciated in the following areas:

  • Accounts Payable – as outline in the section titled “firm financial savings” PROACTIS is capable of delivering 3 or 5 fold improvements in efficiency across the A/P department.
  • Across industry the cost of administrative time expended on the purchase process has been estimated at between £60 and £100 per purchase.  Proactis can give a 50-70% saving on such costs
  • Internal Audit – similar to the arguments presented in the “firm financial savings” section regarding external audit. Due to PROACTIS holding all information relating to expenditure activities within one repository, the cost and time expended in internal audit activities reduces considerably
  • e-invoicing
  • Account visibility
  • e-tendering