Improvement of purchase order invoice processing : case study of technical materials purchasing

Abstract

An efficient Purchase order invoice processing is crucial for companies to streamline their procurement operations and ensure timely payment to their suppliers. This thesis explores various strategies and technologies that can help improve the purchase order invoice processing from the procurement point of view.

The thesis starts with the current state analysis of the problems in the Purchase order invoice processing caused by manual work, data and information errors, and late payment due to inefficient workflows, which all lead to late payments. The thesis uses the action research approach and qualitative research methods to investigate these challenges especially focusing on error data and stakeholder collaboration. The theoretical framework of the thesis discusses lean management principles and Six Sigma methodologies for optimizing process workflows, as well as overviews available strategies and technologies to help in purchase order invoice processing.

The outcome of this thesis presents practical recommendations for leveraging automation technologies and communication improvement to optimize the current Purchase order invoice processing, enhance its efficiency and reduce errors, while also improving supplier relationships and overall operational performance. In addition, a practical recommendation is provided as Robotic Process Automation (RPA) can be adopted by the case company as one of advanced technologies to prevent errors and discrepancies in the current process.

Keywords: Purchase order, invoice processing, procurement, efficiency, automation, collaboration, communication