Striking the Balance: What Finance Needs from a Lab Supply Marketplace

By ZAGENO

March 19, 2024

In the fast-paced world of biotech, efficiency is key. But for finance decision-makers, efficiency can sometimes come at the cost of control. This article will explore the delicate balance between R&D’s need for efficiency and control, and how lab supply marketplaces are effectively striking that balance.

Lab supply platforms, such as ZAGENO, offer a streamlined solution that covers the entire lab supply expenditure cycle, from purchasing to receiving. Typical features will allow scientists to search, compare, and select from a variety of brands and products while enjoying enhanced price transparency and consolidated ordering tracking.

 

However, when finance professionals hear that the purchasing process is about to become more efficient, their first thoughts aren’t always positive. Enhancements to efficiency can raise concerns about essential check and balance activities being skipped in favor of saving time. Any new platforms must integrate seamlessly without weakening the existing controls labs and biotechs already have in place.

Myths vs. Reality:

In our extensive work with countless CFOs, accountants, finance directors, and finance departments, ZAGENO is privy to commonly-held myths surrounding the streamlining and automation of the lab supply ordering process. We’ve compiled these misconceptions, as well as insights into how the ZAGENO marketplace effectively addresses them, with the aim to benefit the community.

Myth: Empowering end users to become ordering users transfers purchase order (PO) control from purchasing to the end user, decentralizing the process for finance and weakening controls.

Reality: ZAGENO offers features like custom approval limits and thresholds, ensuring that orders outside of pre-set tolerance thresholds are flagged for review. User access, approval workflows, cost centers, and purchase limits can be easily configured to your preferred controls. Automated PO generation, purchase routing, receiving, invoice processing, and 3-way matching helps prevent errors and fraud.

Myth: Systems integration erodes controls and leads to data loss.

Reality: ZAGENO seamlessly integrates with your existing processes, controls, accounting, ERP, and P2P systems.

Myth: Three-way matching is difficult to automate.

Reality: Easily align purchase orders, receiving reports, and supplier invoices with ZAGENO’s automated 2-way match plus mobile receipt upload to guarantee accuracy.

Myth: Billing options are rigid.

Reality: ZAGENO offers order-based billing for companies that prefer a one-to-one match and consolidated billing for companies looking for simplicity.

Myth: Vendor due diligence is not adequate.

Reality: ZAGENO performs legal and financial due diligence on suppliers during the setup process, as well as thorough checks for financial and legal risks including OFAC searches and Google searches.

In the world of biotech finance, striking the balance between efficiency and control is critical. Lab supply marketplaces like ZAGENO offer solutions to address finance professionals' concerns, providing seamless integration, robust fraud controls, and efficient procurement processes. By leveraging these tools, operations can be streamlined in a way that maintains the necessary controls to safeguard organizations.

 

Are you an R&D finance professional looking for a lab supply ordering solution that enhances efficiency and control? Contact ZAGENO today and discover how to streamline your procurement processes, while maintaining control.

To learn more about how ZAGENO can eliminate the lab management challenges, gain access.

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