A prominent passenger air transport company operating across multiple domestic and international routes in the Asia Pacific region and beyond aimed to accelerate business growth as travel demand rebounded post-COVID-19 pandemic. The company needed to streamline and enhance its back-office functions, beginning with the invoicing process, and sought to modernize its digital systems to provide smoother and more competitive customer services.
The airline embarked on an ambitious transformation program, which included a comprehensive refresh of its digital systems to enhance customer services online and on mobile platforms. It also sought to improve its SAP business systems to achieve more integrated and efficient operations. Part of the transformation roadmap involved enhancing core back-office functions, starting with accounts payable. Historically, the airline relied on manual, paper-based processes for managing invoices, which were time-consuming and resource-intensive. To avoid increasing the accounts payable headcount as business operations ramped up, the airline sought to streamline invoice processing.
To achieve its accounts payable (AP) automation objectives, the airline deployed a new invoice processing solution powered by OpenText Vendor Invoice Management for SAP Solutions. This implementation enabled the team to post invoices accurately with reduced time and effort by replacing manual processes with automated workflows.
During the selection process for the new solution, the airline established several key criteria, including ease of integration with its SAP solutions and the ability to accurately capture data from both paper and electronic invoices. In combination with OpenText Core Capture for SAP Solutions, the new solution leveraged continuous machine learning to extract data from invoices submitted on paper or as electronic documents. All processed data is securely retained using OpenText Core Archive for SAP Solutions, aiding the airline in meeting regulatory obligations.
Working with its local OpenText business partner, I AM Consulting, the airline deployed and configured the new solutions, transitioning from paper-driven AP processes to digital workflows. The entire solution operated securely in the OpenText Cloud, eliminating the need for additional on-premises IT infrastructure procurement and management costs. After thorough testing and validation, the airline moved its new AP automation solution into production which enabled the airline to scan paper invoices on-site, upload them to the cloud, process using Core Capture, and then routed to Vendor Invoice Management for further processing.
With OpenText and I AM Consulting, the airline established a cost-effective, secure, and automated approach to its AP process, marking a significant step in its long-term transformation journey. By integrating Vendor Invoice Management, Core Capture, and Core Archive into its accounts payable (AP) organization, the airline optimized its settlement processes, enhanced operational efficiency, and created capacity for business growth. The airline has also significantly reduced the cost and time associated with manually re-keying data from paper invoices into its SAP applications, as approximately 60 percent of the invoices received are still printed on paper. With the implementation of Core Capture and Vendor Invoice Management, much of this labor-intensive work has been eliminated, allowing AP professionals to focus on value-added activities.
The airline has achieved a 50% straight-through processing rate due to accurate data capture and intelligent automation provided by the OpenText solution. This allows the airline to post thousands of invoices annually with minimal human intervention. The airline is also working towards a fully paperless AP process in partnership with its suppliers, aiming to enhance cost-efficiency and improve environmental performance by encouraging digital invoice submissions. This initiative is part of the company's broader sustainability strategy to reduce paper usage and shrink its carbon footprint.