Transcepta’s client is a top 10 public university that is transforming a diverse global society through education and public works. The university’s AP team was expending a huge amount of time and resources manually processing the roughly 27,000 invoices they receive each month from their thousands of suppliers.
Only a handful of their suppliers were connected electronically, meaning that the vast majority of invoices arrived by mail. When invoices arrived in the mailroom they were bagged and delivered to the AP department twice a day, morning and afternoon, where they were opened, sorted, scanned, and indexed into the central invoice retention platform.
This process required extra staff in the mailroom, in addition to two dedicated full-time employees (FTE) and two student interns. Once the invoices were indexed, a fifth FTE manually processed every single invoice, resolving exceptions via lengthy email chains, and manually routing to get proper approvals. The biggest issue with this system, aside from the huge time and resource investment, was the speed of payment. It took so long for the university to process incoming invoices that they were unable to pay their suppliers on time.
Because the AP team could not meet their supplier payment terms, they were unable to pay by virtual card, causing them to lose out on valuable rewards that helped to reduce costs and offset the massive resource expenditure required to process invoices. The university needed a platform to automate its AP processes, minimize invoice exceptions, and facilitate 100% straight-through invoice processing. The platform also needed to be flexible enough to accommodate future ERP migrations without disrupting the supply chain.
Download the full case study to learn how Transcepta helped the university:
Reduce the amount of time it takes to pay suppliers from 30 days to fewer than 24 hours.
Reduce the resources required to process invoices by 90%.
Dramatically increase their straight-through invoice processing rate.