A/P Case Study

Case Study:
Global Manufacturing Company Automates A​ccounts Payable Work​flow with JobRouter

Global Accounts Payable Workflow  Case Study |

BACKGROUND: Operational Complexity

One of the world’s leading manufacturers of engines and propulsion systems for distributed power generation systems wanted to​ automate their accounts pay​able workflow process. Their current vendor invoice management process was 100% paper-based​​. The process insufficient controls and was highly labor-intensive. In addition to the accounts payable staff , more than 600 employees were involved in supplier invoice approvals.

The impact of this cumbersome manual process reached across the organization - way beyond the jurisdiction of the accounting department. Furthermore, the company had undergone a number of acquisitions, mergers, and divestitures over the past 10 years​. ​As a result, this increased ​the operational complexity of their accounting processes. ​Finally, the company's international manufacturing, distribution and service model means that their suppliers are located all over the world and deal in multiple currencies.

Almost every school faces the challenge of managing a mountain of paper with inefficient manual procedures. JobRouter gives K-12 Schools the power to easily and quickly convert any paper-based or manual procedure into a user-friendly and effective automated process. The significant time, costs and resources that are recovered can be re-dedicated to better serve students and parents.

CHALLENGE: SAP Validation Restrictions

The company ​uses SAP as its enterprise software solution​. SAP​ has stringent invoice input validation requirements that ​prevent​​ed the company from posting a significant number of invoices. Invoices were rejected for having incomplete, inconsistent, or incorrect information when reconciled with purchase orders. As a result, there was no way to track the company’s invoice liability within SAP. Customizing SAP to ​address th​ose issues ​within their accounts payable workflow would have been very expensive and ​​​could have taken many months to implement.

Almost every school faces the challenge of managing a mountain of paper with inefficient manual procedures. JobRouter gives K-12 Schools the power to easily and quickly convert any paper-based or manual procedure into a user-friendly and effective automated process. The significant time, costs and resources that are recovered can be re-dedicated to better serve students and parents.

CHALLENGE: Bottlenecks and Risk

The company was ​getting approximately 200 supplier invoices ​every day​. These invoice were all manually processed​. As a result, ​accounting staff were spending a lot of time tracking down errors and performing non-core tasks, rather than accounting functions. Al​so, ​accounts payable staff ​had to manually route the invoices ​for approvals using a variety of methods.

Once the invoice left accounting, there was no consistent ​way to manage and track the approval procedures. Accounting staff spent a significant amount of their time checking on the progress and status of approvals​. They were also ​unable to provide vendors with the status of invoices in a timely manner.

As a result, a large​ number of paper invoices were constantly in transit between departments and approvers, with no audit trail. The process also introduced the risk ​of incorrect or duplicate payments to vendors, late fees, inability to take advantage of early payment discounts, and potential liability issues.

Almost every school faces the challenge of managing a mountain of paper with inefficient manual procedures. JobRouter gives K-12 Schools the power to easily and quickly convert any paper-based or manual procedure into a user-friendly and effective automated process. The significant time, costs and resources that are recovered can be re-dedicated to better serve students and parents.

SOLUTION: JobRouter Chosen As BPM and Workflow Platform

A/P Case Study | Digital Process Automation

Results:

  • 100% liability tracking and visibility
  • Increased productivity, faster processing
  • Fewer errors, fewer late pay penalties
  • One button end-of-month reporting
  • Integration with SAP
  • Rapid implementation
  • Automated exception handling
  • Improved cash management, bottom line
  • Compliance and built-in audit trails
  • Secure access to invoices and supporting documents

SOLUTION: Removing Bottlenecks and Risk Quickly

Business process consultants from managed service provider Secure-24 conducted a multi-day workshop with the company. ​The output of these workshops was to clearly define the accounts p​ayable workflows needed and to re-engineer and optimize the process. Because ​th​e comp​any had a the large number of invoice disputes, particular emphasis was placed on sub-processes for exception handling​ and ​​integration with SAP​.

​The JobRouter Suite was selected as the BPM (Business Process Management) platform to develop a custom ​solution for their ​accounts ​payable workflow process for a number o​f reasons.

​First, JobRouter allowed rapid application development​ so a solution could be quickly deployed. The project was implemented within weeks, rather than the months it would have taken to customize SAP or integrate a third-party product.

Second, JobRo​uter​'s certified interface ​communicates with SAP systems​ to access data or execute transactions in SAP. These processes can be modeled independently of SAP. As a result, ​no SAP access is required for the involved users. Learn ​more about JobRouter and SAP.

​​Finally, the newly implemented ​accounts ​payable workflow is completely automated and fully compliant with the company's legal and security requirements.

Almost every school faces the challenge of managing a mountain of paper with inefficient manual procedures. JobRouter gives K-12 Schools the power to easily and quickly convert any paper-based or manual procedure into a user-friendly and effective automated process. The significant time, costs and resources that are recovered can be re-dedicated to better serve students and parents.

SOLUTION: Cost Effective, Secure Private Cloud Deployment

​​The company did not want to run the new A/P system on-premise.​ By choosing a cloud implementation, they placed their system in Secure-24’s state-of-the-art data center, managed and operated with the highest standards of security, compliance, and application availability.

Almost every school faces the challenge of managing a mountain of paper with inefficient manual procedures. JobRouter gives K-12 Schools the power to easily and quickly convert any paper-based or manual procedure into a user-friendly and effective automated process. The significant time, costs and resources that are recovered can be re-dedicated to better serve students and parents.

SOLUTION: Additional Document Support Services

JobRouter Partner, Secure-24 further supports the company with added document conversion and management services. Invoices are physically picked up at the customer site, then scanned, indexed, and stored in a document management and workflow system on a daily basis.

Almost every school faces the challenge of managing a mountain of paper with inefficient manual procedures. JobRouter gives K-12 Schools the power to easily and quickly convert any paper-based or manual procedure into a user-friendly and effective automated process. The significant time, costs and resources that are recovered can be re-dedicated to better serve students and parents.

SOLUTION: ​Faster Processing & Greater Control and Visibility

VALIDATION & APPROVALS: Once invoices are input into the new A/P system, the accounts ​payable workflow automatically checks for duplicate invoices and correct purchase order assignment. ​​JobRouter ​routes the invoice to accounting for reconciliation with open purchase orders and goods receipts, then on to the appropriate individual and department for approval.

ESCALATIONS: Automatic workflow escalation and notifications ensures that invoices are processed in a timely manner. All invoices waiting for ​approvals also appear in the appropriate reports that are available for supervisors.

COST SAVINGS: The new ​accounts payab​le ​workflow solution has significantly decreased the amount of time required to process an invoice​. The ​company had enjoyed immediate​ ​and significant cost savings.

VISIBILITY & REPORTS: Accounting staff can now quickly access all invoices electronically, and view and track the status. They can also track invoices by supplier and generate monthly and ad-hoc reports.

COMPLIANCE: This solution enables the company to be fully compliant​. ​​JobRouter has a ​built-in audit trail ​​the reduces the liabilities associated with invoice management. Learn more about ​JobRouter and Compliance.

Almost every school faces the challenge of managing a mountain of paper with inefficient manual procedures. JobRouter gives K-12 Schools the power to easily and quickly convert any paper-based or manual procedure into a user-friendly and effective automated process. The significant time, costs and resources that are recovered can be re-dedicated to better serve students and parents.
K12 Education BPM: Reducing Paperwork & Lowering CostsK12 Education BPM: Reducing Paperwork & Lowering Costs

Turn Business Processes Into Assets