Streamlining Global Invoice Processing for Automotive Excellence

Streamlining Global Invoice Processing for Automotive Excellence

At the heart of the automotive industry lies a complex web of operations. Efficient invoice processing is a critical component to keep the wheels turning smoothly. Our client is a leading automotive company with global business centers in Asia, Europe, and the United States. They faced the challenge of handling an overwhelming volume of invoices – approximately 40,000 per month at each location. With accounts payable (AP) and accounts receivable (AR) processes spanning the globe, the company required a robust solution to streamline invoice processing.

Challenges Faced by the Client

1. Navigating Global Complexity:

The automotive industry involves a vast network of vendors and suppliers spread across the world, presenting significant challenges for the company’s existing system. Despite being equipped with data capture and automation, the system required constant machine training, leading to a high number of manual interventions and slowing down the processing cycle. The diversity of vendor locations added another layer of complexity, necessitating proficiency in multiple languages, including Mandarin, Vietnamese, various East European languages, Spanish, and English.

2. Manual Touchpoint Overload:

The existing system struggled with excessive reliance on manual reviews during invoice processing, resulting in inefficiencies and a prolonged processing cycle. 

3. Volume to be Processed:

The scale of the challenge was immense, with 40,000 monthly invoices for both EMEA and North America and an additional 20,000 for Asia.

How did ARDEM help our Client

1. ARDEM Invoice Manager: Revolutionizing Invoice Processing

The ARDEM Invoice Manager became the linchpin of the solution, revolutionizing the client’s entire invoice management cycle. The process began with the seamless receipt of invoices, which were then accurately recorded and matched with the corresponding purchase orders and receipts. This critical step ensured that all data was precise and reliable.

Next, the invoices underwent a rigorous approval process, where they were verified and authorized for payment. Once approved, a remittance date was established, scheduling the payment to ensure timely processing and adherence to payment terms. The invoices were then promptly paid on the scheduled date, further streamlining the process.

Finally, each invoice was recorded in the general ledger, ensuring that the client’s financial records remained up-to-date and accurate. This comprehensive approach not only improved the efficiency and accuracy of the client’s invoice processing but also significantly reduced the need for manual interventions, ultimately optimizing their overall financial operations.

2. Translator: Breaking Language Barriers

ARDEM recognized the linguistic diversity of the vendor network. So, ARDEM implemented a Translator tool capable of processing invoices in multiple languages seamlessly. This eliminated language barriers. IT also enhanced accuracy and reduced the risk of errors due to language misinterpretation.

3. Approval Process Automation: Streamlining Workflows Digitally

To tackle the high number of manual reviews, ARDEM introduced an automated approval process. It replaced traditional manual methods. This not only expedited the process but also brought in a new level of consistency and accuracy.

Success: How Our Client Benefited

The implementation of ARDEM’s solution brought forth a multitude of benefits for our automotive client: 

1. Processing Diversity:

The ARDEM Invoice Manager enabled the processing of both Purchase Orders (POs) and non-POs. It handles invoices in non-English languages with a seamless combination of man-machine collaboration. 

2. Exception Handling:

The system’s ability to adapt to varying invoice scenarios, including exceptions, ensured a smoother processing flow. 

3. Reduction in Aging:

By automating the approval process and reducing manual touchpoints, the solution significantly reduced the aging of invoices in the system. 

4. On-time Vendor Payments:

The improved efficiency resulted in payments on time. This contributed to enhanced vendor relations and overall satisfaction. 

By addressing the global challenges of invoice processing in the automotive industry, ARDEM streamlined workflows. Thus, we also contributed to the client’s overall goal of increasing automation across their processes.