In the world of accounts payable, the challenges are all too familiar: manual processes, high costs, data inaccuracies, and the never-ending struggle to make payments on time.
But what happens when a large North American truck and trailer parts distributor joins forces with Transcepta to tackle these issues head-on? Read on to learn how a big change in AP processes saved this industrial auto distributor $1.5 million annually.
The AP Automation Challenge
Our story revolves around the largest independent distributor of aftermarket truck and trailer parts in North America, processing over 1,000,000 invoices annually.
The customer experimented with OCR based solutions as well as outsourced AP processers. Unfortunately, a staggering number of invoices ended up in the exception queue. This led to increased workload for the AP team, invoice approvers, and suppliers. To resolve the errors and perform extra work, the company spent over $750,000 in temporary labor each year.
The resulting errors and delays caused headaches for field personnel and administrative branches. Financially, the company was grappling with exorbitant processing costs, spending up to 10 times more on invoices that went into exceptions.
Complete Shift to Automation
Using the Transcepta Platform the company shifted from manual processing to a controlled, automated, and revolutionary AP environment.
Leveraging the Transcepta Supplier Network and “learning technology” embedded into the Transcepta Platform, over 99% of the invoice exceptions were eliminated! Transcepta PO CloudMatch was particularly impactful, as it ensures invoices match POs at the line level before customers receive the invoice.
The transformation was nothing short of remarkable:
Complaints about late payments disappeared.
Exception rates decreased to near zero, and the company saved $1.5 million annually in AP processing costs.
Improved visibility into processing helped eliminate the potential for over-billing by suppliers, and enabled the company to capture early payment discounts.
So, if you're still battling the challenges of manual AP processes, consider the remarkable journey of this distributor. With Transcepta, the path to savings, efficiency, and stronger supplier relationships is just around the corner.