TDG improves efficiencies with accounts payable automation.
TDG is one of Europe’s leading supply chain management companies with over 6,500 employees across the UK and Europe. From their shared service center on the outskirts of Manchester, England, TDG handles the majority of back office functions for the entire group.
With 8,000 suppliers submitting more than 250,000 invoices each year, the accounts payable workload is substantial. To keep costs low and infuse greater efficiency into the accounts payable process, the company sought an automated solution. In 2006, solutions were beginning to appear that integrated optical character recognition technology with workflow management.
Bottomline’s Transform Intelligent Capture Services
TDG selected Bottomline Technologies’ Transform Intelligent Capture Services because they had a prior history with Bottomline and knew the company had the infrastructure in place to support them. In 2007, they automated processing for the 60,000 invoices TDG received each year that didn’t have purchase orders. Once the team was familiar with the concepts, Bottomline installed a new purchase order management system with automated validation against purchase orders.
Staff members access the scanned original invoices through a single web-based interface, where they can see status and history, and handle amendments, approvals, and other activities. Emails notify staff of actions they need to take. Roughly 500 people use the system with about 50 to 100 users online at any one time.
In the first 15 months of operation, the backlog of invoices awaiting resolution went from 7,500 to less than 200. The straight through processing rate increased from 20% to nearly 60% with scope for further improvements going forward. Invoices became visible to the business in 24 hours rather than six days, with visibility extended to all relevant staff regardless of location. TDG reduced the accounts payable staff from 22 to 14 members, which increased the contribution each staff member made to the business.
In the Customer’s Own Words
“The beauty of the system is that all users see a single version of the truth.”
Nigel Rouch, Senior Project Manager, TDG