Multi-Billion Dollar Pharmaceutical Manufacturer Streamlines its Finance Operations with Invoice Processing Automation
Business Scenario
To address a decentralized and manual paper based invoice processes for entering 800,000+ vendor invoices annually, the client invited Intertec for an automated Accounts Payable solution to be used by their global shared services 150+ staff.
Prior to embracing AP Automation, the client was making manual invoice entry which was a time and resource intensive process and required significant personnel. Now, the client has centralized their global invoice processing and routes documents electronically.
Challenges
- Lack of visibility to information whether an invoice received, any exceptions, processed or paid
- Improve reconciliation, streamline accrual processes, and produce more-accurate financial statements
- Slow invoice processing due to manual routing
- High invoice processing cost due to processing errors, exceptions, and vendor queries
Solution
Intertec AP automation system enabled client users to capture invoices, auto routing to concerned staff based on exceptions.
Solution integrates with SAP ERP interface and post the invoice directly, Auto 3 – way matching invoice with PO-receipt, visibility and productivity reports.
With end-to-end automation, Intertec AP automation improved efficiency by reducing the number of hands required to touch an invoice before it is paid.
This solution has significantly lowered resource needs for payables processing and improved cash flow and visibility into payables liabilities and enabled the client to optimize its annual spend by taking advantage of total-spend visibility.
The primary objective behind implementation of AP Automation was to increase visibility throughout the AP process and provide centralization of the process to support company’s global expansion.
The client decided to implement AP Automation for the following reasons:
- Multi-currency to map global invoice processing
- Exception based auto routing
- Simplified query send and receive functionality
- Ability to define standard email templates
- Eliminate manual data entry and associated errors
- Booking the Invoice directly into ERP
In line with the objectives set by the client, AP Automation was an ideal fit to address all their aforementioned objectives. The solution allowed digitization of the invoices, matching, exception management.
It didn’t only bring 100% visibility to client’s AP processes but also helped them improve productivity, reduce paper work and avoid late payments through automated alerts.
With implementation of AP Automation solution, the client got the following benefits apart from achieving the objectives.
- Improved Vendor relationships
- Boosted efficiency by reducing the number of hands required to touch an invoice before it is paid
- Cut invoice storage and routing costs
- Better exception handling
- Increase visibility into payables liabilities
- Solution has significantly lowered resource needs for payables processing
Return on Investment
- Reduced turn around time per invoice by 50%
- Streamlined and increased access to information (audit) leading to 100 % visibility
- 95% reduction in paper invoices due to Vendor Portal, Indexing
- 25% productivity improvements