We're excited to introduce our latest feature designed to empower your financial oversight: Line-Item Price Comparison to compare price variations with previous invoices in the system.
This new tool enables you to compare prices of individual items on invoices against historical data from the same supplier, offering you clear insights into cost variations.
Here's how it works:
Targeted Historical Analysis: Our system examines the ten most recent invoices from the same supplier, matching item codes and descriptions for precise comparison.
Instant Price Variance Detection: When a price change is detected, the system visually highlights it for you. A red arrow pointing upwards indicates a price increase, along with the percentage rise, while a downward arrow signals a price drop, displaying the percentage decrease.
Detailed Insight at a Glance: Gain a granular view of your supplier's pricing trends over time, effortlessly spotting price fluctuations across individual items.
Benefits for Users:
Enhanced Cost Management: Keep a close eye on cost variations to manage your expenses more efficiently, spotting price increases or decreases as they happen.
Informed Decision-Making: Utilise historical price data from the last ten invoices to make informed purchasing decisions and negotiate better terms with your suppliers.
Time-Saving: Save time and reduce manual price comparison efforts, minimising the risk of errors and allowing you to focus on strategic financial management.
Enabling this feature will deepen your insights into purchasing trends and strengthen your financial control.
Why It Matters:
Monitoring pricing on the line/item level is particularly useful in scenarios where businesses need to track and manage costs meticulously. Let's consider an example in a manufacturing setting:
Procurement in Manufacturing:
In a manufacturing company, the procurement department is tasked with purchasing raw materials used in production. Imagine the company frequently buys steel, plastic, and electronic components from various suppliers. By monitoring pricing at the line/item level, the procurement team can:
Detect Price Fluctuations: Spot if the cost of steel rises by 5% compared to the last purchase, prompting an investigation into market trends or discussions with the supplier about the reason for the increase.
Budget Management: Keep production costs under control by identifying which raw materials are becoming more expensive and affecting the overall production budget.
Negotiate Better Deals: Use detailed historical price data to negotiate better terms or discounts with suppliers, especially if they notice consistent price increases for certain materials.
Strategic Sourcing: Decide whether to continue buying from the current supplier or to explore alternative suppliers offering more competitive prices, particularly if a particular item’s cost has been steadily rising.
In this way, line-item level pricing monitoring helps the manufacturing company maintain cost-efficiency, manage supplier relationships, and make informed decisions about procurement strategies.
Supprt article: please visit our support portal for more information about this feature.