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| | November 10, 2008
Paperwork eraser cuts corporate costs
Publisher: Calgary Herald
Author: Mario Toneguzzi
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| | Mario Toneguzzi, Calgary Herald
Published: Monday, November 10, 2008
With the plethora of important business documents manually exchanged on a daily basis by companies, administrative costs run high and the entire processing system at times lacks some efficiency.
But a Calgary-based company, Cortex Business Solutions Inc., has developed a network service to provide a paperless supply chain management system for companies, particularly in the area of procurement.
Procurement - the business-to-business sale and purchase of goods and services - is largely a manual and paper-based process, presenting businesses with time-consuming and costly tasks like tracking cost commitments, matching purchase orders, receipts and invoicing, data entry and analyzing invoicing errors, says Ryan Lailey, vice-president of business development for Cortex.
Many companies still operate with an archaic system when it comes to procurement, he says.
Cortex, a provider of e-commerce services which was incorporated in 1999, has reached an agreement that will offer its services to TELUS energy sector customers. In 2006, Cortex had five employees; now it has 70 employees.
"The TELUS relationship will expand Cortex's open access e-procurement network to enable energy sector companies to exchange procurement and accounts payable information electronically with their customers and suppliers, regardless of which accounting software they use," states Cortex in a press release.
"By joining this network, customers will reduce administration costs, improve validation and accuracy of invoicing and deliver visible cost benefits to procurement processing."
Cortex, with revenue of $1.6 million in 2007, has about 700 clients, primarily in Canada but some in the United States, including Husky Energy. Lailey says that with the Cortex network, paper is eliminated, administration costs are reduced, a simpler system is in place, cash flows and financial controls are improved and payment times are cut down.
Every company connects to the network, paying a onetime connection fee varying by client and a monthly access fee.
He says the entire cost of the network for a company is about one-third the cost of one full-time employee making about $60,000 a year.
"Our sell is not a technical sell. Our sell is a business sell," says Lailey.
Cortex Business Solutions Inc. - Incorporated: 1999; - Went public: 2001; - Employees: 64 full-time, six contract;
Clients: 700 companies primarily in anada but some in the United States, including Husky Energy, - Annual revenue: $1.6 million in 2007;
Description: -commerce service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. |
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