Cleo has released a new solution to strengthen its Procure-to-Pay business process automation solutions. CIC PAVE (for Procurement Automation and Vendor Enablement) is an add-on to the Cleo integration platform that delivers a supplier portal that allows the organisation to keep vendor interactions in a single location. It will allow organisations to record vendor interactions in a single location even if they cannot use EDI or have API-ready applications. This often applies to small to medium-sized businesses that cannot meet the costs or have the skills to implement.
The importance of Supplier management
Supplier management is becoming increasingly important. Manufacturers must increase the resilience of their supply chain to ensure that future disruption does not impact their business. Where this is challenging is when those suppliers are smaller organisations. A study by Wakefield Research found that 84% of SMBs still rely on manual processes.
There is a consequence for the supplier but also the manufacturer in this. 80% of SMBs require a greater order lead time and shipment receiving time. The study also found that manual processes slow down P2P cycle times by 60%. The reason is that 96% of exchanges occur via email rather than a single portal integrated into the manufacturer’s backend that PAVE can provide. Emails can get stuck at both ends of the relationship, leading to broken collaboration and further delays.
That means manufacturers must find better ways to engage with and even provide the automation and processes themselves. The advantage down the road is that things like Scope 3 emissions will be easier to track. Also, the organisation’s relationship is stronger as the SME finds it easier to deal with the manufacturer.
CIC PAVE
CIC PAVE provides a means for organisations to deliver this closer relationship. PAVE provides integration through CLEO Integration cloud to backend ERP solutions for orders, PO acknowledgements, ASN and Invoices. PAVE also enables integration directly with carriers, customers and other suppliers as required and beyond that to marketplaces and eCommerce sites.
Cleo calls out five benefits that CIC PAVE can deliver to organisations:
- Digitalize procurement processes
- Eliminate manual document exchange
- Enable EDI with every supplier
- Drive up efficiency
- Support global materials sourcing
Mahesh Rajasekharan, Cleo CEO, commented, “Any manufacturer still relying on manual processes like phone, fax or email to manage orders, acknowledgements, shipments or invoicing with its suppliers is putting its business at risk.
“CIC PAVE immediately opens these antiquated supply chains to the digital world by automatically enabling EDI with virtually any ecosystem partner, creating the exact kind of seamless digital integrations manufacturers need to remain competitive in today’s era of rapid digital transformation.”
Why does Cleo PAVE matter
The solution improves supply chain visibility and control. It will improve the operational efficiencies for both the suppliers and the manufacturer. For the manufacturer, it eliminates manual interactions, making the processes more efficient. For the supplier, it enables them to automate critical business processes.
The portal can also provide centralised EDI helping those suppliers to become EDI enabled. Overall the solution promises to improve efficiency and reduce processing costs for manufacturers and their supplier ecosystem.
Rajasekharan added, “Cleo is leading the way when it comes to B2B integration innovation. With CIC PAVE, we are advancing the modernization efforts of manufacturers by facilitating frictionless interactions with their non-EDI suppliers and vendors. Prioritizing automation is now more important than ever, and Cleo is making it easier than it’s ever been before.”
Enterprise Times: What does this mean
Cleo is building a robust manufacturing supplier management solution for Cleo Integration Cloud. CIC PAVE is another step on that journey and enables organisations to bring their supplier closer and strengthen the bonds between them. Having smaller, flexible suppliers that can react quickly is useful. It also helps to build relationships across the ecosystem, including trust, trust backed by automation.
