As a Chief Procurement Officer, staying ahead with technology is crucial. P2P automation is a game-changer, breaking down old barriers in procurement. Gartner’s report shows a big move towards this, with the procure-to-pay market growing fast, expected to reach $13.4 billion by 2025. Automation can make your processes smoother, quicker, and more efficient. It’s all about making smart moves now to lead in the future.

This blog will explain how procure-to-pay software revitalizes your businesses, especially if you follow a traditional approach involving repetitive tasks. 

The Evolution of P2P

The evolution of the Procure-to-Pay process has remained a contemplating point for CFOs and CPOs to increase efficiency and savings. The traditional manual procure-to-pay cycle, coupled with inefficiencies and poor spend visibility, contrasts starkly with the clarity and compliance of automation. 

Moglix shows how a tire company could save money by changing how it does P2P. The company initially needed help with manual tasks and a need for unified suppliers. However, by automating P2P, they achieved a 3% cost decrease, a 95% OTIF rate, and a shorter PR-to-PO period of two days. This shows how efficient technology is, which is important for CFOs and CPOs who want to cut costs.

Navigating Challenges for Business Efficiency

A prominent EPC company’s MRO procurement process could have been more efficient due to a fragmented supplier base, inefficient multi-step processes, lack of standardized catalogs, and delayed order processing times. These challenges caused delivery delays, quality issues, and higher procurement prices. Moglix’s procurement workflow digitization helped solve these issues. Moglix implemented a streamlined procure-to-pay solution to improve procurement efficiency and transparency and reduce MRO procurement costs by 20%, proving that digital transformation can overcome operational challenges.

Final Words 

When organizations upgrade their P2P method, they can cut costs, save time, get better visibility, and make mistakes less likely. Chief financial officers can learn more about how much money is being spent, which helps them control costs and negotiate better. Automation cuts down on manual chores by a large amount; A uniform system makes it easier to see what’s happening and make decisions. Automation in accounts payable lowers the chance of mistakes. In the end, P2P automation makes making requests easier, recording invoices, matching them, getting approval, and connecting them to ERP systems. This helps keep costs down, speeds up processing, and ensures correct financial reports.The procurement-to-pay process allows businesses to make wise decisions and enhance their financial operations. So, it is prudent for companies to proactively take consultations from experts like Moglix to learn more and resolve their supply chain issues.

Reference:

1. https://www.gartner.com/reviews/market/procure-to-pay-suites

As stated by an official, the Red Sea crisis [1], sparked by Houthi rebels in November 2023, has severely disrupted global supply chains, particularly impacting Asia-Europe trade routes via the Suez Canal. According to UNCTAD, there’s been a 28% [2] decrease in daily canal transits in early January 2024, forcing reroutes that add significant costs and delays. 

According to a Geopolitical Monitory research, this conflict skyrocketed shipping costs by 173% [3]. This alarming situation is a critical wake-up call for Chief Procurement Officers globally, emphasizing the urgent need for robust risk management and contingency planning in supply chain operations.

To mitigate global shocks, Chief Procurement Officers must focus on Strong supply chain management, risk analysis, planned route diversification, and quick response to enhance overall supply chain resilience.

The wake-up call 

The crisis in the Red Sea is changing how we handle world trade and supply lines in big ways. Shipping charges amplify when routes have to be changed because of it. There are a lot of problems in fields that depend on buying and selling things across borders, like energy, technology, and car manufacturing. It’s important to have good supply chain plans to keep things going easily and drop risks. The main goals of these plans should be to get things from different places, better track of stock, and use various transport methods.

It has had a huge effect on the world economy. As per a Geopolitical Monitor study, the cost of shipping a 40-foot container from Asia to Northern Europe has risen by $4,000 [4]. Vessel insurance prices also increased: for a $100 million vessel, the cost increased from 0.1-0.2% to 0.5%, $300,000 to $400,000 [4]. This cost increase is putting inflationary strains on the region’s fragile economic recovery.

Especially in light of the Red Sea situation, Chief Procurement Officers (CPOs) need to understand how important transparency in the supply chain is. According to a study by Harvard Business Research, 90% [5] of leaders think being more open encourages employees to make more informed choices. Supply chain apps that use digital tools like blockchain and AI can better track and manage risks, which makes things simpler. Buyers and sellers need to speak clearly and regularly so that information can be shared and decisions can be made quickly. This way of doing things is important for improving businesses and dealing with tough global trade problems.

Another important lesson is how to outsource in the supply chain. This is what more than 80% of supply chain workers do when they want to raise the cost of outsourcing. Utilizing the expertise of outside delivery companies enables businesses to concentrate on their core operations.

Streamlining Complexity

A case study shows how important it is to have strong supply chain plans and clear communication between all parties involved: A tire manufacturer with seven plants struggles with supply chain issues, such as keeping track of more than 8,000 line items and 600 sources, which slows things down and wastes time. Even though these things went wrong, they could save 3% on their overall costs.

Final words

Finally, the Red Sea situation emphasizes the need for Chief Procurement Officers to engage in supply chain digital transformation. This transformation is critical for successful supply chain management, allowing organizations to negotiate complex global difficulties while increasing resilience. Adopting digital solutions in supply chain management services is critical for risk mitigation and operational efficiency. Explore professional insights and modernize your supply chain with Moglix. Delve into disruptive tactics and find comprehensive solutions to enhance your operations.Explore professional insights and modernize your supply chain by delving into disruptive tactics and discovering comprehensive solutions. For more information, turn to Moglix.

References:

1. https://economictimes.indiatimes.com/red-sea-crisis-affect-on-indias-trade/articleshow/107402330.cms
2. https://www.msn.com/en-in/news/India/red-sea-crisis-affect-on-indias-trade/ar-BB1hKnOA
3. https://www.geopoliticalmonitor.com/red-sea-crisis-exposes-a-weak-point-of-global-maritime-trade/
4. https://www.geopoliticalmonitor.com/red-sea-crisis-exposes-a-weak-point-of-global-maritime-trade/
5. https://www.basware.com/en/resources/harvard-business-review-analytic-services-using-transparency-to-enhance-reputation-and-manage-business-risk

The Directorate General Factory Advice Service & Labour Institutes (DGFASLI) says that about 4,000 [1] injuries, including foot injuries, happen yearly, causing people to miss days at work. That’s why wearing the right shoes to protect your feet is important, just like other industrial safety equipment you use at work. Let’s learn about workplace dangers that can hurt your feet and the types of safety shoes you can buy.

Different Types of Workplace Hazards Involving Foot Injuries 

Falling and Flying Objects 

Sometimes, workers work in a dynamic work environment. It involves big vehicles, heights, or heavy machines. Here, shielding the feet against falling and flying objects becomes imperative. 

Defense against punctures 

The ground of a construction site is full of sharp objects. Regular soft-soled shoes may not be able to provide substantial protection. This might lead to punctures and foot injuries. 

Cutting hazards

Industries into cutting or drilling operations involve machine parts with sharp turns or pointy edges, such as chainsaws and grinder cutters. Using them without protection gears might expose workers to significant foot and leg injuries. 

Electrical Hazards

When live electric wire comes in contact with the ground without earthing protection, the working personnel will feel the electric shock without non-conductive footwear. Such shoes are also important to save workers from static electricity. 

Slips, Trips, and Falls

More than 40% [2] of injuries at the workplace are due to slips, trips, and falls, out of which 16% of accidents involve falls on the ground level. It can happen due to poor lighting, trailing cables, uneven flooring, or cluttered walkways. Proper footwear with adequate traction to prevent foot and other injuries. 

Burn and Fire Hazards 

According to reports from OSHA, almost 200 [3] workplaces catch fire daily. Normal fire dangers, chemical spills, or hot, melted metals can cause these fires. Workers must wear strong, protective shoes in these kinds of workplaces to keep them safe.

Types of Safety Footwear 

Industrial Safety Shoes

These are anti-slip, steel-reinforced shoes to offer protection in extreme working conditions such as construction, logistics, electronics, automobile chemicals, etc. 

Work Boots

Work boots cover half calves to offer protection from electric shock, heat, fuel/oil spills, and sharp objects at the workplace. 

Steel Toe Shoes

The toe box of such shoes is made of heavy-duty steel to offer maximum protection against puncture, compression, and impact in all weather conditions. 

Electrical Safety Shoes

Electric safety shoes are made of non-conducting leather and non-metallic fiber toes with PU soles. They can resist high electric shocks of 11kv for up to one minute. 

Leather Safety Shoes

Usually made of carbon steel, these shoes offer protection from impacts and can resist heat up to 300°C for one minute. 

High Ankle Safety Shoes

These shoes come with durable protective material coupled with soft cushioning at the top to aid comfort and safety. 

Waterproof Safety Shoes

Workers working under water-logged conditions need shoes to protect their feet from harsh chemical liquids, shocks, and chemicals. 

Welding Shoes

These are breathable, anti-skid shoes with heat and burn-resistant features well suited for electric welding, leg welding, and blacksmithing spats.

End Thoughts

Choosing the right safety shoes requires identifying the hazard type and the ideal material that can offer the best protection. However, an expert consultation should not be an option to ensure maximum workplace safety. 

The safety of your workers is more important than anything else. Ensure it by adopting the right safety equipment and safety rules in industry. Visit our website to learn more. 

Reference:

https://www.indiaspend.com/special-reports/3-workers-die-every-day-in-indian-factories-govt-data-show-850083

https://www.housecallpro.com/resources/news-press/industry-news/slips-trips-and-falls/#:~:text=What%20Percentage%20of%20Workplace%20Accidents,falls%20on%20the%20ground%20level.

https://www.mcrsafety.com/en/ppe/flame-resistant-protection/frc/knowledge-center/workplace-stats#:~:text=and%20gas%20industry.-,General,injured%20by%20workplace%20fires%20annually.