Accounts Payable Automation Transformation

A rapidly growing company, revamped its Accounts Payable (AP) processes by adopting Medius, an advanced AP automation solution. Achieved a 50% reduction in manual processing time, saving over $20,000 annually. This transformation project streamlined invoice management, reduced manual workload and empowered the accounting team to focus on strategic initiatives. This case study highlights this AP automation journey's strategic approach and measurable outcomes.

CATEGORY: DIGITAL TRANSFORMATION - ACCOUNTS PAYABLE

December 2023

A dynamic organization experiencing significant growth through mergers and acquisitions (M&As) and facing increasing operational demands. With an expanding headcount and product portfolio, the company recognized the need to enhance operational efficiencies, particularly within its AP processes. Embracing digital transformation, they aimed to support its core pillar of "Scale," ensuring the company's infrastructure could handle the increasing demands of its evolving business landscape.

Problem and Goals:

Challenges:

1. Inefficiencies in AP Workflows: Complex approval routing workflows caused delays in invoice processing.

2. Limited Automation: The existing AP platform lacked OCR capabilities, leading to significant manual data entry.

3. Resource Bottlenecks: High manual workload and recent AP team departures overburdened the accounting staff.

4. Scalability Concerns: The current system was insufficient to support the projected increase in invoices due to M&As and business growth.

   
   

Goals:

1. Streamline and automate AP processes to enhance productivity.

2. Implement a scalable solution to manage increased invoice volumes efficiently.

3. Reduce manual intervention and associated costs.

4. Enable the accounting team to focus on high-value tasks and professional growth.

Solution:

Approach: We led a structured, three-phase vendor selection process to ensure alignment with their needs:

1. Platform Research: Identified potential vendors through market analysis and references.

2. Due Diligence: Assessed vendors on scalability, configurability, technical capabilities, and customer references.

3. Approval: Conducted cost-benefit analysis, executive approvals, and implementation planning.

Vendor Evaluation: The evaluation focused on four key vendors and Rossum after rigorous assessments, Medius emerged as the optimal choice, offering:

• 50% Reduction in Manual Data Entry: Intelligent Document Processing (IDP) automated data capture from invoices.

• Faster Approval Processes: Streamlined workflows reduced approval times by 30%.

• Scalability: Designed to accommodate a 50% increase in invoice volume seamlessly.

Implementation: The project team led the deployment of Medius, ensuring seamless integration with existing finance systems. Key activities included:

• Configuration of IDP capabilities to auto-populate invoice fields.

• Simplification of approval routing workflows.

• Comprehensive training for the AP team.

Result:

1. Efficiency Gains: Reduced manual processing time by over 50%, equating to significant time and cost savings.

2. Cost Savings: Annual AP invoicing costs decreased from $50,000 to a more sustainable level.

3. Improved Productivity: Enabled the accounting team to focus on strategic activities, enhancing their contribution to business growth.

4. Scalability: The Medius platform effectively supported the increased invoice volumes resulting from their growth.

5. Enhanced Employee Engagement: By alleviating routine tasks, the solution contributed to accounting professionals' career growth and job satisfaction.

Conclusion: 

AP automation project highlights the tangible impact of a metrics-driven approach to digital transformation. Through meticulous planning, vendor selection, and implementation, they achieved significant cost and time savings while positioning its AP function to support continued business growth. The success of this initiative highlights the importance of aligning technology with business needs to drive meaningful outcomes.