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A leading sports car manufacturing enterprise reduces the invoice processing time to less than 5 days

A leading sports car manufacturing enterprise reduces the invoice processing time to less than 5 days
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The Organization Profile 

A leading global automobile manufacturing giant specializing in sports and other car categories. It has a strong presence in multiple global markets and has a revenue of $23 Bn.  

The Challenge- Disorganized manual AP processes led to inefficiencies and errors in invoice processing 

When the organization decided to conduct a time efficiency study to enhance their operations, they were met with a surprising discovery—a pervasive long cycle time across various processes. The lack of transparency and compliance across divisions further exacerbated the issue. However, one critical challenge that stood out was the prolonged invoice processing time, significantly hampering process efficiency. 

The accounts payable (AP) process within the organization was plagued by a tedious and time-consuming approach, primarily due to reliance on manual, paper-based systems. The traditional method of handling invoices involved extensive manual efforts, consuming several hours of valuable manhours. Employees had to scan each invoice individually and then match them with purchase orders (PO) manually. This repetitive and labor-intensive process not only wasted time but also increased the likelihood of errors and discrepancies. 

Moreover, the organization faced the persistent issue of misplaced or buried paper files. With the large volume of invoices being processed, it became increasingly challenging to maintain an organized and easily accessible record-keeping system. Consequently, valuable time was spent searching for misplaced documents, leading to further delays in processing invoices and hindering the overall efficiency of the AP process.   

The Solution- Reduce invoice processing by implementing Zycus e-Invoicing solution

The organization adopted the Zycus e-invoice solution to increase the efficiency of its AP processes.  

The custom approval processes and workflows allowed invoices to be routed electronically for approval without interruption, offering greater visibility and flexibility.  

With the new system in place, invoices could be submitted electronically, eliminating the need for physical documents and manual data entry. This streamlined the entire AP process, from the receipt of invoices to payment, resulting in faster turnaround times and improved cash flow management. The electronic routing of invoices enabled quick and efficient approval, as invoices were automatically directed to the appropriate stakeholders based on predefined rules and roles. 

Moreover, the introduction of an e-invoicing solution played a crucial role in enhancing the efficiency of the AP process. The solution provided automated validation of invoice data, ensuring accuracy and reducing the chances of errors. It could detect any discrepancies or non-compliant invoices by comparing the invoice details with predefined rules and regulations, minimizing the risk of financial penalties or audit issues. This automated validation process not only saved time but also improved the overall compliance of the AP process. 

One of the key advantages of Zycus E-invoicing solution is its ability to automatically capture invoice data with high precision. By leveraging optical character recognition (OCR) technology and intelligent data extraction algorithms, the solution extracts relevant information from invoices, such as vendor details, invoice number, line items, and amounts, with minimal human intervention. This eliminates the risk of errors that typically arise from manual data entry, ensuring that accurate invoice information is recorded in the system. 

Furthermore, the  solution performs validations on the captured data, cross-referencing it with predefined rules and criteria. It checks for discrepancies, such as incorrect pricing, quantities, or tax calculations, and identifies any deviations from compliance requirements. By automating these validation processes, the solution significantly reduces the likelihood of errors slipping through the cracks, ensuring that only accurate and compliant invoices proceed through the AP workflow. 

The Zycus’ E-invoicing solution automatically accurately captures invoice data, performs validations, and enables straight-through processing. By minimizing errors resulting from manual interventions, the E-invoicing solution promotes the generation of more accurate financial records. This, in turn, leads to improved financial reporting and analysis, as well as better decision-making based on reliable data. Additionally, the reduction in errors translates into fewer payment disputes with vendors, as invoices are processed accurately and in a timely manner. 

The Result- Ability to improve the Invoice extraction accuracy 

After adopting Zycus’ E-invoicing, the automobile giant has maximized its operational efficiency. The team has saved time and moved from mundane tactical tasks to more strategic ones to help the organization flourish.  

With our e-invoicing solution, the data extraction accuracy improved to 95.4%, which resulted in time savings.     

Without Zycus’ e-invoicing, the automobile giant had to hire additional FTE (Full time Employed) to process the volume of work; moving from a manual system to a paperless system helped the team better manage the workload and drive cost savings.  

Related Read:

  1. Blog – Why Automated 3-Way Matching is Key to Accounts Payable Success
  2. Blog – How to Transition to Paperless Invoicing: A Step-by-Step Guide
  3. Blog – Automating the procurement process with procure to pay technology
  4. Research Report – Invoice Workflow Automation (IWA) Report
  5. Three way Invoice Matching Software
  6. White Paper – E-invoicing Maturity Model for AP Process Improvement
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