The procure-to-pay (P2P) process in multifamily property management can be a complex and time-consuming endeavor, often burdened by high-volume, low-value tasks. However, advancements in automation and AI are transforming this critical function, offering significant efficiency gains and cost savings. Here's a look at how automation is revolutionizing each stage of the P2P process:

1. Vendor Compliance and Credentialing:

Traditionally, managing vendor compliance involved a significant manual effort, including:

• Collecting and verifying certificates of insurance, licenses, and other credentials.
• Tracking compliance across different ownership groups, geographies, and trades.
• Dealing with 1099 issues and discrepancies.

This manual process was time-consuming, prone to errors, and often took property managers away from their core responsibilities.

Automated solutions like NetVendor offer a streamlined approach by:

• Simplifying vendor enrollment: Vendors can easily enroll and update their information in a centralized system.
• Automating compliance tracking: The system automatically tracks and verifies compliance documents, ensuring accuracy and reducing risk.
• Providing access to a pre-vetted vendor network: Easily source compliant vendors with a few clicks.

By automating vendor compliance, property management companies can significantly reduce the time and resources spent on this critical function, improve accuracy, and minimize risk.

2. E-Procurement and PunchOut Catalogs:

Moving from paper catalogs and manual purchase orders to online catalogs and automated procurement processes can significantly improve efficiency and accuracy.

Benefits of online catalogs include:

• Streamlined ordering: Easily browse catalogs, select items, and submit purchase orders online.
• Real-time budget comparison: Compare purchase orders against budgets to ensure accurate spending.
• Automated order fulfillment: Eliminate manual order processing and reduce errors.
• Simplified invoice processing: Suppliers can submit invoices online, streamlining the approval process.
• Automated fixed asset tracking: Automatically track fixed assets for improved inventory management.

While implementing online catalogs requires initial effort in setup and training, the long-term benefits in terms of time savings, accuracy, and efficiency are substantial.

3. Invoice Processing:

Manual invoice processing is a tedious and error-prone task, often leading to delays and inaccuracies.

AI-powered invoice processing offers a transformative solution by:

• Automating data extraction: Extract key information from invoices, eliminating manual data entry.
• Improving accuracy: Reduce errors in vendor information, GL coding, and invoice totals.
• Streamlining approval workflows: Route invoices directly to the appropriate approvers for faster processing.
• Eliminating the "incomplete invoices black hole": Bypass incomplete invoices and send them directly to the next approval level.

By automating invoice processing, property management companies can free up valuable time for accounting teams, improve accuracy, and minimize the risk of errors.

4. Bill Pay:

Integrating bill pay functionality directly within the property management system offers significant advantages over managing payments through a third-party provider.

Benefits of integrated bill pay include:

• Real-time visibility: Track vendor payments in real-time within the system.
• Reduced workload: Eliminate manual payment processing and reconciliation.
• Improved vendor communication: Automatically email vendors with payment information.
• Streamlined stop payment process: Easily place stop payments and update payment information within the system.

By streamlining bill pay processes, property management companies can improve efficiency, reduce errors, and enhance vendor relationships.

The Future of Procure-to-Pay:

AI and automation will continue to play a crucial role in optimizing the procure-to-pay process. Future advancements will likely focus on further automating tasks, improving accuracy, and providing greater visibility and control over spending.

By embracing these innovations and transitioning from manual to automated processes, property management companies can significantly improve efficiency, reduce costs, and free up valuable time for more strategic initiatives.