The Imperative of Streamlined Invoice Processing for SAP with OpenText
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Key Takeaways
LuLu Group International achieved a 70% straight-through processing rate for invoices and accelerated goods receiving by 50% after implementing OpenText's automated invoice management solutions, demonstrating significant operational efficiencies.
The integration of OpenText Capture and Vendor Invoice Management for SAP enhanced data accuracy and minimized manual intervention, leading to improved financial transparency and reduced compliance risks.
Automation of accounts payable processes fostered stronger supplier relationships through timely and accurate invoice processing, which builds trust and enhances collaboration in the supply chain.
Companies can lose significant money due to inefficient accounts payable (AP) processes. Multiple studies show that manual invoice processing can cost businesses up to $25 per invoice, while automated systems can reduce this cost by as much as 80%.
Moreover, late payments, often a result of slow processing, can damage supplier relationships and lead to missed discounts. In this scenario, how can companies streamline their AP processes to save money and improve vendor relationships?
Streamlining Invoicing
This question weighed on LuLu Group International, a global retail giant that wanted to streamline its operations. The company faced the daunting task of manually processing over nine million paper invoices every year. It wanted to accelerate the processing of these bills and enhance customer experience by cutting the time taken to stock goods on store shelves. The company also needed the solution to work with its existing SAP systems.
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LuLu Group implemented this transformation by using OpenText’s Vendor Invoice Management for SAP Solutions.
An Integrated Approach
For OpenText, the core objective of this project was to streamline the accounts payable (AP) processes through automation and help LuLu Group transition from a cumbersome paper-based system to efficient digital workflows.
This involved the strategic deployment of several OpenText solutions, such as:
- OpenText Archive for SAP Solutions to optimize and control costs with proficient SAP data archiving.
- OpenText Capture, which leveraged AI and intelligent capture software to speed up business processes.
- OpenText Vendor Invoice Management for SAP Solutions to streamline SAP financial processes by automating invoice management.
This integrated approach enabled LuLu Group to accurately capture data, harness intelligent business logic, and optimize the invoice processing lifecycle from initiation to completion. By digitizing the invoice workflow, the company eliminated the bottlenecks associated with manual handling, reducing the risk of errors and significantly accelerating processing times.
Visible Improvements
The results of this strategic implementation were remarkable. LuLu Group achieved a 70% straight-through processing (STP) rate for invoices by substantially reducing manual intervention. This improved efficiency and freed up valuable resources to focus on other critical business operations.
The automation of invoice processing also contributed to a 50% acceleration in goods receiving, ensuring that products reached store shelves faster, ultimately enhancing the customer experience.
“Before we worked with OpenText, the big challenge was that our in-store teams lacked visibility into what deliveries were coming to their location each day, which led to goods piling up in the receiving areas of our stores,” said Anish Mohamed, CIO, LuLu Group. “Now, that’s all changed. Thanks to our new digital AP process, we’ve cut the average time from receiving goods to making them available for purchase, enabling us to delight our customers and maximize every sales opportunity.”
Beyond the operational improvements, the implementation of OpenText solutions also strengthened LuLu Group’s relationships with its suppliers as it fostered trust and transparency by ensuring timely and accurate invoice processing.
In conclusion, Lulu Group International’s successful implementation of OpenText solutions demonstrates the transformative power of automation in optimizing critical business processes.
What This Means for SAPinsiders
Implementing invoice management solutions can significantly reduce manual intervention. By embracing digital workflows, LuLu Group achieved significant operational efficiencies, enhanced customer experience, and strengthened supplier relationships. Automation with solutions like OpenText Vendor Invoicing Management for SAP Solutions leads to a higher straight-through processing rate that translates to reduced processing costs and faster cycle times. An organization using the solution frees up resources for strategic initiatives.
OpenText’s capture and validation capabilities ensure accurate data extraction. Using OpenText Capture, LuLu Group leveraged AI to capture invoice data, minimizing errors and compliance risks. This integration with SAP provides a robust audit trail and enhances financial transparency while helping businesses in their growth strategies.
Automation strengthens supplier relationships. Timely and accurate invoice processing fosters trust and transparency with suppliers. By optimizing the payment process, SAP users can improve supplier satisfaction and build stronger, more collaborative partnerships. As highlighted in this case study, implementing OpenText’s solutions positioned LuLu Group for continued success in the dynamic retail landscape. Thus, this case study serves as a compelling example of how strategic technology investments can drive tangible business value and enable organizations to thrive in an increasingly competitive environment.
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