Spend time analyzing, not pulling data

Things such as finding out who your biggest vendor is, how many touches an invoice goes through and
how to then improve the invoice flow, is a challenge with standard VIM reports in SAP. Lundin Mining wanted to improve their visibility on what was actually happening using data, rather than anecdotes.

A lot of companies struggle with late payments, not knowing where invoices get stuck in the process and getting reports together for the business.

What happened?

Problem

Late payment = unhappy vendors

One of the things that contribute to that are not knowing why and where invoices get stuck within the Accounts Payable process. Lundin Mining needed more insights into their Vendor Information Management for SAP implementation, as their issues with insight were causing delays and complexity.

Solution

We wanted to take Lundin Mining to a helicopter view of their process, allowing them to compare monthly and quarterly accounts payable performance. By creating meaningful insights, we could show exactly how many touches were happening, where and for how long.

Result

In the 1st quarter after implementation touchless rate was only 1%, but two quarters later the benefits were clearly visible, with touchless rates jumping from 1% to nearly 13%. We unearthed that some invoices were being re-scanned which wasn’t needed, as well as finding bottlenecks in the process caused by excessive interventions.

Iteration gives you improvement

Lundin Mining were able to iterate month on month, quarter on quarter to continue improving their touch-less invoicing capabilities. Freeing up people to spend their time on more valuable tasks.

Touchless

By identifying the areas where invoices were being held up, Lundin focused their efforts on the parts of the process that were failing.

Proven results

A huge jump in the percentage of touch-less invoices was the start. On top of that came the ability to create reports at short notice, without the risk of manual data transition.

Vendors

The improved efficiency has led to better payment organisation and as such, better relations with vendors. As well as highlighting payment terms that were advantageous to pay early.

Why Turnpikes?

““Using Insights & Analytics has given us a full overview of our invoice processes, rather than settling for the grass root view in VIM Analytics. If we had not had Insights & Analytics, we would not have been able to see the change in our automation as easily. Most likely we would not have known the impact the implementation had on our invoice flow. We are much more diligent when it comes to late payments, and pay invoices on time, which has improved our vendor relations

Joacim Karmfalk – SAP Application Lead – Lundin Mining

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