Global Retail Player Uses Process Mining for Accounts Payable Process
Updated: Aug 10, 2022
An giant Asian retailer wanted to analyse its account payable process to keep good relation with its vendors, ensure proper working capital usage and reduction in avoidable spends. To identify the issues he employed process mining tools to uncover hidden savings potential.
Root Causes & Solutions
Touch-less invoice process covers a small percentage of overall cases. Analytics show 150K invoices needed quantity changes. The reason was incorrect invoice ingestion. Automating invoices ingestion and checking for inaccuracies in ingestion and correct it immediately before proceeding to next set in the process chain
Re-approval process was reworked to increase the productivity of the overall P2P process.
Improve Working Capital
Day Payable Outstanding (DPO) should be high. However, it was found low after process mining. There is a mismatch between the payment terms on invoice and those on the purchase order, leading to invoices being paid earlier than necessary and tying up working capital. Automating the update of the due date in each invoice which mismatch with PO
Invoices which are cleared after due date cause potential lost cash discounts. Missing goods receipt was the main root cause. By automatically detecting missing goods receipt and indicating before proceeding in the process chain for corrective handling.
Find out more about how process mining if beating inflation in India.
Return on Investment
Optimization of invoice ingestion process
Achieve low DSO and change avoidance
Detecting inaccurate invoices
Elimination of late payments
Contact us today if you want to increase productivity and improve optimization with process mining along with identifying opportunities for automation.