Industry: Manufacturing
Overview:
- Employees: 100+
- Vendor Payments: Delays reduced from 6 months to on-time payments
- License Cost Savings: Significant reduction by moving to a centralized access solution
Products Used: AP Automation, Vendor Payment System, Invoice Management
Key Success Metric: Streamlined AP operations, improved vendor relationships, and reduced licensing costs
Objective:
AO Smith, a global leader in water heating and water treatment solutions, faced challenges within their accounts payable department due to high software licensing costs, significant delays in vendor payments, and frequent inquiries related to invoice status. Their goal was to streamline AP processes, reduce operational inefficiencies, and improve vendor relations while cutting costs.
Solution Provided:
AO Smith chose IQInvoice to address their AP challenges and automate core processes. By centralizing invoice arrivals, improving accessibility for relevant users, and eliminating manual handling, IQInvoice helped AO Smith to enhance productivity and drastically reduce costs.
- Cost-effective Access: IQInvoice’s centralized solution allowed multiple users to access invoice and payment data without the need for individual software licenses, greatly reducing software licensing costs.
- Timely Vendor Payments: IQInvoice automated the invoice process, eliminating the need for physical invoices and ensuring on-time vendor payments, strengthening supplier relationships.
- Streamlined Invoice Inquiries: Detailed invoice information became easily accessible, cutting down time spent on queries and freeing up AP staff for higher-value tasks.
Testimonial:
“IQInvoice has transformed the way we manage our expenses. With a significant reduction in our processing time from 5 days to just 1 day, we’ve seen a remarkable improvement in efficiency. The implementation of ICR/OCR, automated invoice processing, and workflow approvals matching our Delegation of Authority has been a game-changer. We’ve cut our processing costs by 70%, and IQInvoice has become an indispensable tool for us at AO Smith Water Products.”
— Sr. Account Executive, AO Smith India
Key Impact Areas:
- Cost Reduction on Licensing:
- Centralized access reduced the need for individual software licenses.
- Allowed the reallocation of budget to other operational priorities.
- Improved Vendor Payments:
- Centralized invoice processing led to timely vendor payments, reducing delays from over six months to on-time payments.
- Vendor relationships were improved through consistent payment schedules.
- Increased Efficiency with Automated Processing:
- The implementation of automated invoice processing, including ICR/OCR, reduced manual workload and sped up processing times.
- Processing times dropped from 5 days to 1 day, cutting costs by 70%.
- Streamlined AP Operations:
- Real-time access to invoice data and payment statuses reduced the time spent on queries by over 50%.
- Workflow automation, matched to Delegation of Authority, optimized approvals and further improved efficiency.
Results and Highlights:
IQInvoice enabled AO Smith to reduce software licensing costs, automate invoice processing, and significantly improve the efficiency of their accounts payable team.
- Processing Efficiency: Reduced invoice processing time from 5 days to 1 day.
- Cost Savings: 70% reduction in processing costs.
- Licensing Cost Reduction: Lowered by consolidating access under a single solution.
- Vendor Relationships: Enhanced through timely payments and streamlined communication.
Conclusion:
The implementation of IQInvoice at AO Smith has revolutionized their accounts payable operations. By reducing manual effort through ICR/OCR technology and automating workflows aligned with their Delegation of Authority, AO Smith has seen major cost savings and efficiency improvements. The solution has become an integral part of their financial processes, helping AO Smith streamline vendor payments and enhance overall AP productivity.