Despite digitalization: Purchasing managers complain about weaknesses in invoice verification and payment

Neu-Isenburg, February 27, 2024

Although most European companies have now digitized their indirect procurement, the responsible purchasing managers still see weaknesses in the process. This was confirmed by a survey of 534 purchasing managers in nine European countries (Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Switzerland, and the UK) conducted by corporate payment expert AirPlus.

Indirect procurement refers to expenditure on services and goods that are required for ongoing business operations and do not flow directly into the company's value creation process, such as for marketing, IT, telecommunications, logistics, or facility management. The AirPlus survey reveals light and shade.

E-procurement and standardized processes are the norm

It is true that 80 percent of the European companies surveyed stated that they have now digitized these procurement processes with a software solution (e-procurement). Self-developed solutions are used most frequently (mentioned by 25 percent), closely followed by IBM Procure (12 percent), SAP Concur Invoice (11 percent), and Coupa (7 percent).

In addition, most companies (64 percent) have a standardized procedure for indirect procurement. According to the survey, a further 28 percent are currently planning to introduce such a procedure.

Invoice control and payment pose challenges for purchasing professionals

However, most respondents still see room for improvement in their company’s purchasing policy with regard to the purchase-to-pay process. Purchasing professionals see inefficiencies particularly in the control of invoices (mentioned by 54 percent), but also in payment (43 percent) and ordering (31 percent). Only 16 percent of respondents are satisfied with the process.

The question about the usual payment methods for indirect procurement shows a mixed picture: Bank transfers are used most frequently (mentioned by 45 percent), followed by physical and virtual credit cards (43 percent and 39 percent respectively). One in three respondents (33 percent) also stated that employees at their company had made private payments and received a refund later.

"Companies have recognized that efficient purchasing processes must be digital and have invested accordingly. However, it is hardly surprising that purchasing professionals still see room for improvement when it comes to payment," comments Stefan Waelde, Head of Business Development B2B Payments at AirPlus. "Payment by bank transfer, petty cash, or private advance payment by employees is associated with a great deal of manual and time-consuming effort – especially for purchases via web stores or portals from retailers or service partners, as well as for urgent ad hoc orders. In addition, companies miss out on important information that could help them to optimize their spending and invoice verification processes. Payment solutions such as virtual credit cards provide precisely this data and can be generated and used quickly and easily by any employee – within a defined framework. Companies should consider this option now, as more and more orders are being placed online and require card payment."

Expertise in corporate payment

AirPlus has continuously expanded its range in recent years – from an expert in business travel management to an expert in corporate payments. The company has introduced a special virtual credit card for the payment of items such as software licenses, office supplies, and online advertising, and has entered into partnerships with well-known players in the procurement industry, including Coupa Software, Mazepay, THL Pay, and Piteco. In total, AirPlus has connected more than 4,000 partners and data sources, working closely with more than 60 IT partners to ensure that all solutions can be seamlessly integrated into any customer ecosystem.

About AirPlus International:

AirPlus International is a leading international provider of corporate payment solutions. 53,000 corporate customers rely on AirPlus for the payment and evaluation of their business trips and other purchasing services. The products and services are marketed worldwide under the AirPlus International brand. AirPlus is an issuer of the UATP and Mastercard card schemes. The AirPlus Company Account is the most successful billing account within the UATP. For more information, visit www.airplus.com.