Automotive Supplier’s Global Shared Services for Accounts Payable

automobilemanufacturing

After rapid growth of the business through a series of mergers and acquisitions, the automotive division of global manufacturing was left with a decentralized accounts payable (AP) process across its 180 plants worldwide. The company had two outsourced shared services environments, inconsistent processes, and limited visibility into when invoices were received and paid. To process its more than 2.5 million invoices each year, the company wanted an SAP-centric solution that would enable the company to centralize and standardize invoice processing across the company and:

  • Reduce invoice processing costs
  • Post invoices quickly
  • Resolve vendor discrepancies with less effort
The company also wanted a solution that would allow it to bring its shared services center in-house to increase controls and transparency. Solution The company implemented the Dolphin Process Tracking System for Accounts Payable (PTS-AP) solution. After conducting a detailed analysis, the Dolphin team developed a blueprint for process optimization that included:
  • Automated capture of invoice header and line-items with Optical Character Recognition
  • Early, automated validation of invoices against specific business rules
  • Automated routing of invoices for approvals and exception handling using SAP workflow
  • Detailed AP dashboard and analytics for insight into invoice status from initial capture through processing and posting
Dolphin incorporate industry best practices and the company's specific business rules to enable the centralization and standardization of its accounts payable processes. With the solution in place, the company was able to move its shared service centers in-house. It was also able to adopt new business rules such as “intelligent routing and coding”, which increased efficiencies and lowered processing costs by ensuring key invoices were paid on time, available discounts were captured, and less time and effort was spent managing exceptions and vendor inquiries. Results The solution was implemented in less than four months and has since been expanded to other divisions. Today, the company is processing more than 10,000 invoices per day, faster, and at a lower cost per invoice. Key results include:
  • Millions in savings from faster invoice processing, captured discounts, and reduced late payment penalties
  • Improved accuracy with a >70% OCR recognition rate across all European languages.
  • Faster exception handling with invoice validation and vendor inquiries performed by in-house shared service centers in Europe and Mexico
  • Improved control and visibility with real-time invoice status tracking and improved reporting and analytics
The initiative received the company’s Chairman’s Award which is the highest company-wide recognition for an internal project. Download_PDF  

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Automotive Supplier’s Global Shared Services for Accounts Payable

After rapid growth of the business through a series of mergers and acquisitions, the automotive division of global manufacturing was left with a decentralized accounts payable (AP) process across its 180 plants worldwide. The company had two outsourced shared services environments, inconsistent processes, and limited visibility into when invoices were received and paid.

To process its more than 2.5 million invoices each year, the company wanted an SAP-centric solution that would enable the company to centralize and standardize invoice processing
across the company and:

  • Reduce invoice processing costs
  • Post invoices quickly
  • Resolve vendor discrepancies with less effort

The company also wanted a solution that would allow it to bring its shared services center in-house to increase controls and transparency.

Solution
The company implemented the Dolphin Process Tracking System for Accounts Payable (PTS-AP) solution. After conducting a detailed analysis, the Dolphin team developed a blueprint for process optimization that included:

  • Automated capture of invoice header and line-items with Optical Character Recognition
  • Early, automated validation of invoices against specific business rules
  • Automated routing of invoices for approvals and exception handling using SAP workflow
  • Detailed AP dashboard and analytics for insight into invoice status from initial capture through processing and posting

Dolphin incorporate industry best practices and the company’s specific business rules to enable the centralization and standardization of its accounts payable processes. With the solution in place, the company was able to move its shared service centers in-house. It was also able to adopt new business rules such as “intelligent routing and coding”, which increased efficiencies and lowered processing costs by ensuring key invoices were paid on time, available discounts were captured, and less time and effort was spent managing exceptions and vendor inquiries.

Results
The solution was implemented in less than four months and has since been expanded to other divisions. Today, the company is processing more than 10,000 invoices per day, faster, and at
a lower cost per invoice. Key results include:

  • Millions in savings from faster invoice processing, captured discounts, and reduced late payment penalties
  • Improved accuracy with a >70% OCR recognition rate across all European languages.
  • Faster exception handling with invoice validation and vendor inquiries performed by in-house shared service centers in Europe and Mexico
  • Improved control and visibility with real-time invoice status tracking and improved reporting and analytics

The initiative received the company’s Chairman’s Award which is the highest company-wide recognition for an internal project.

Download_PDF