Read to learn how TechStyle dramatically reduced manual labor, eliminated invoice exceptions, and achieved perfect 100% auto-matching with Transcepta.
The Story of TechStyle
In the world of fashion, TechStyle has been a game-changer since its establishment in El Segundo, California in March 2010. This global fashion e-commerce and retail powerhouse has a unique focus on women's apparel, with a dynamic portfolio of brands that have attracted attention in the United States, Germany, the United Kingdom, and Spain.
TechStyle's commitment to innovation and customer-first approach has positioned it as a frontrunner in the fashion e-commerce industry. As the company experienced rapid growth, it faced significant challenges in its Accounts Payable (AP) processes, especially in the invoice-to-pay process.
The AP process was manual and the team had to key a large number of PO and non-PO invoices into Oracle E-Business Suite (EBS). This continuous data entry required significant time and patience.
Matching invoices to POs in Oracle was extremely difficult. Inventory and indirect invoices required 3-way and 2-way matching respectively. In either case, the process was long and complex.
Invoice exceptions were the norm for both non-PO and PO based invoices and the AP team couldn’t catch up.
Processing delays routinely caused TechStyle to miss early pay discount opportunities, leaving money on the table.
AP team members were overwhelmed fielding inquiries from suppliers regarding payment status.
Lack of visibility into outstanding liabilities made financial planning difficult.
Why TechStyle Chose Transcepta
TechStyle recognized the need for a comprehensive solution to address these challenges and decided to partner with Transcepta, the leading AP Automation platform.
The key factors that led TechStyle to choose Transcepta included:
No OCR: Transcepta's approach to invoice capture is distinct from other providers as it does not use Optical Character Recognition (OCR) technology. OCR requires manual validation and ensures a lifetime of excess staffing and cost.
Transcepta Supplier Network: Transcepta creates a feedback loop with suppliers, promoting transparency and eliminating delayed payment surprises. Suppliers are enabled to resolve errors and potential invoice exceptions before they reach AP’s inbox.
Learning Platform: Transcepta delivers advanced invoice validation capabilities, including validation against multiple purchase orders and for complex non-PO invoice GL coding and approval. Transcepta learns from all the transactions in the Transcepta Supplier Network, and makes every invoice you receive, process more efficiently than the last.
Seamless Integration: Transcepta enabled TechStyle to capitalize on its previous investments in Oracle EBS by synching existing validation rules with Transcepta.
Flexible Supplier Connectivity: Transcepta supports various invoice formats such as EDI/XML, PDF, and Virtual Printer.
TechStyle Project Scope
The key highlights included:
Quickly connecting over 3,000 suppliers to the Transcepta Supplier Network.
Digitally processing of more than 40,000 annual invoices with accuracy and efficiency.
Validating invoices against 37,000 open monthly purchase orders, ensuring 100% matching.
Making invoice status readily available to all suppliers, enhancing communication and reducing payment inquiries.
Integrating Oracle's "cross validation" rules into the Transcepta Platform so not to lose previous investment.
TechStyle Project Results
The collaboration between TechStyle and Transcepta produced impressive results, effectively transforming the AP process end to end. TechStyle was able to:
Reassign five members from the Accounts Payable team thanks to process automation.
Prevent the need to add AP staff despite the company's substantial growth.
Eliminate all supplier driven invoice exceptions thanks to Transcepta's pre-validation features.
Achieve a 100% auto-match rate in Oracle by pre-matching PO-based invoices in the Transcepta Platform.
Automate the GL coding of non-PO invoices with Transcepta CloudCode.
TechStyle's partnership with Transcepta significantly improved its AP processes, resulting in cost savings, increased efficiency, and enhanced supplier relationships.
By embracing AP automation, TechStyle positively impacted AP, Finance, Procurement, and its suppliers.