top of page
Writer's pictureAlex Carter

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

  • Increase Productivity

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


  • Spend Reduction

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.




Return on Investment

  • Process Improvement | $500k

Optimization of invoice ingestion process

  • Process Efficiency | $200k

Achieve low DSO and change avoidance

  • Process Automation | $400k

Detecting inaccurate invoices


  • Working Capital | $500k

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.








Comments


bottom of page