Live from Fusion 2013: How One Company Saved $1.5 million Annually with an Intelligent Capture Solution
It only took global manufacturer Leggett & Platt 7 months to realize a return on investment (ROI) with its invoice capture solution.
During the company’s educational session at Fusion 2013, its Accounts Payable team explained how it yielded such impressive results. By utilizing a template-free capture solution, Leggett & Platt automatically captures data from invoices – like the amount due and PO number – regardless of where it‘s located on the page from one vendor to the next. The solution remembers where it found the data the next time each vendor’s invoice appears, making data capture even more efficient over time.
And with more than 55,000 vendors sending invoices to the company – more than 2,500 a day – streamlining this process has been invaluable. The company slashed $1.5 million annually in labor costs, reducing its invoice processing staff by more than 40 percent.
“We’ve reduced our cost per invoice by 65 percent in four years, from $3.88 per invoice to $1.36,” explained Nikki Head, senior assistant AP manager for Leggett & Platt. “We’ve also boosted our invoice processing volume by 218 percent with no additional staff required.”
The list goes on. By investing in a template-free capture solution, the company doesn’t waste time creating a template for each unique vendor specifying where to look on each invoice for needed data. Now, the software does it for them, allowing AP staff to focus on exceptions and other initiatives.
For companies looking to streamline AP processes, capture is a logical first step. By eliminating the need for business users to rekey information, organizations minimize the number of touches per transaction, saving hours of manual data entry while increasing AP process efficiency.
Those are the type of process improvements that can transform a company.
“We thought outside the box,” Head said. “Now, we don’t have to think about [these processes] – we let the system do it for us. … And we’re continuously improving.”