How Kissflow Procurement Cloud + Microsoft Dynamics 365 Integration Works In a Source-To-Pay Process
The backbone of many corporate procedures is based on an enterprise resource planning (ERP) system. An ERP is necessary for many daily business operations, including budgeting, reporting, and accounting and financial management. It's appealing to use ERPs for every operational function since they are made to address a variety of operational issues in a centralized manner.
But when it comes to complicated, relationship-based, collaborative procedures like source-to-pay, sole dependency on ERP might not always be the best option. Among many ERP systems available in the market, a popular choice for many organizations is Microsoft Dynamics 365.
What is Microsoft Dynamics 365?
Microsoft combined Dynamics AX, their ERP solution, with the Dynamics CRM application to launch Dynamics 365 in 2016, which is a comprehensive suite of services. Microsoft was among the first companies to offer an integrated solution. Several business processes, including operations, commerce, reporting, manufacturing, and human resources activities, are integrated into one platform by Microsoft Dynamics 365.
Some notable features of Microsoft Dynamics 365, which are leveraged by companies all around the world include:
It integrates customer data from Office 365, Microsoft Dynamics 365, and external data sources and aids users in deriving insights from the data that can be used for decision-making. Power BI is also included in the data analytics and visualization module.
Microsoft Dynamics 365's Field Service Component has primarily been utilized for resource planning and scheduling, contract management, inventory management, insights into IoT-connected products, and customer communication capabilities.
Operational and Financial
Microsoft Dynamics 365 provides financial management and all this module's reporting and analytics options. It also offers manufacturing tools for supply chain management, warehouse and inventory control, and project, production, scheduling, and cost management.
Marketing and Sales
Microsoft Dynamics 365 integrates Adobe Marketing Cloud with Dynamics CRM to offer campaign management and customized, targeted marketing capabilities tailored to your specific requirements. On the other hand, the sales module provides information on the sources of potential customers, personalization of service and customer engagement data, sales productivity, and performance indicators across various platforms, including Dynamics Shopify and Magento.
Shortcomings of Using Microsoft Dynamics 365 for Procurement
Because of their breadth and all-inclusive nature, ERPs might be tempting to businesses. Due to this, ERPs have been the talk of the business world and a need for companies—that is, until the related costs, the length of the project, and the software restrictions become apparent.
ERPs frequently need to be put together haphazardly to give enterprises the services they actually require. Procurement suffers the most as a result of this. Here we have highlighted a few shortcomings of using an ERP system such as Microsoft Dynamics 365 for procurement processes:
1. Unmet Needs, Protracted Implementations, and Stagnant ROI
As a company grows, its procurement processes become more challenging and demanding. A small change in requirements can cause ERP projects to slip behind schedule and incur months of unnecessary delays. Long initiatives frustrate people and make it harder to get a quick return on investment.
Additionally, as ERP partners carry out practically all ERP installations, the strength, knowledge, and resources made available by an outside consultant lack successful and quality implementation of the system. Systems for electronic procurement are put into place in a matter of months rather than years, and they show a quick return on investment.
2. Ongoing Costs
Any new ERP installation project could first appear manageable, but then you realize how expensive an ERP implementation can be—it might cost hundreds of millions of dollars. Economic factors and tight deadlines provide little room for engaging in lengthy initiatives, which are more expensive.
And that doesn't account for the extra expenses related to the time it takes to get the system operating throughout the organization. When additional modules are needed for procurement procedures, the costs quickly increase. Not to forget, ERP consultants can also charge you a hefty amount of money while deploying these systems.
3. Poor User Experience & Complexity
ERP wasn't developed with procurement in mind. ERP systems have evolved into sophisticated tools that serve the demands of the accounting and finance departments. Add-ons must be functionally compatible with the rest of the ERP package because traditional ERPs are overly complex.
Additionally, user adoption of ERPs is shallow because of unfriendly and complicated processes that result in non-PO maverick spending and lower the procurement team's productivity, visibility, etc.
Benefits of Integrating Microsoft Dynamics 365 With Kissflow Procurement Cloud
While an ERP system might not fully cater to the requirements of a complex source-to-pay system, integrating with Kissflow Procurement Cloud can provide you with the following benefits:
1. Enhanced Vendor Collaboration
The source-to-pay process involves searching for strategic suppliers, shortlisting them, negotiating with them, and building relationships beyond a procurement cycle. A robust procurement system can onboard and manage suppliers with its friendly interface and easy-to-use features and feed this data to an ERP system for financial purposes.
This meaningful collaboration promotes mutual gain and the capacity to use operational capabilities to boost group performance. Businesses may significantly reduce processing times, cut back on tasks that detract from value, and enhance accuracy and quality overall.
2. Streamlining the Purchasing System
Since Microsoft Dynamics 365 has numerous features, sometimes it becomes tricky to perform simple operations such as sending a purchase order. Integrating Microsoft Dynamics 365 with Kissflow Procurement Cloud streamlines the purchasing process by flipping purchase requisitions to purchase orders and sending the final PO to Microsoft Dynamics 365.
A straightforward approval process and workflows offered by Kissflow provide transparency and visibility and accelerate the purchasing process. Employees are encouraged to follow procedures and policies, limiting maverick spending.
3. Strategic Procurement
Strategic procurement is a long-term, comprehensive approach to meeting an organization's present and future demands while minimizing supplier chain risk and total cost of ownership (TCO).
Sadly, ERP only pays attention to the operational process, which is transactional and reactive to buying materials and supplies using quick quote and order processes to support manufacturing operations. Integrating procurement solutions can combine the strategic and operational (upstream and downstream) procurement processes, boost performance, and promote collaboration between all roles and functions.
How Kissflow Procurement Cloud + Microsoft Dynamics 365 Integration Works
Wondering what happens when you integrate the two systems? Here is how KPC and Microsoft Dynamics 365 integration works:
1. Supplier Onboarding
While vendor onboarding happens on Kissflow, the details about the supplier are pushed to Microsoft Dynamics 365. Microsoft Dynamics 365 stores the information and returns internal ID against the supplier onboarded. This information is then stored in the Master data of Kissflow Procurement Cloud.
2. Purchasing Process
In terms of the P2P process, PR auto-flips to PO in Kissflow Procurement Cloud, and then PO data pointers are sent to Microsoft Dynamics 365. Whenever anything from Kissflow is posted, Microsoft Dynaimics 365 returns the ID against the PO. Similarly, Invoice and GRN also go through the same process.
3. Invoicing & Payments
When an invoice is paid, Kissflow’s system is notified by Microsoft Dynamics 365, and a mail gets triggered to the supplier informing the supplier that the payment has been made. Data regarding transactions exist in Kissflow and Microsoft Dynamics 365 for reconciliation.
4. Data Storage
All information about suppliers during onboarding, PO, GRN, and Invoice details exist on KPC's platform and Microsoft Dynamics 365. In a nutshell, the integration provides a 2-way sync, ensuring that both systems collaborate effectively.
Modern organizations, SMEs, and multinational corporations require a solution to simplify and streamline their source-to-pay processes to achieve efficiency, visibility, and growth. Microsoft Dynamics 365, when integrated with the right procurement system like Kissflow Procurement Cloud, can assist you in achieving this.