Industry: D2C Apparel
Overview:
- Processed 15,000 invoices
- Managed relationships with 5,000+ vendors
Products Used: AP Automation, Payments & Reconciliation, GST Check & Hold
Key Success Metric: Less than 4 weeks to go-live; Integration with Tally and Vinculum
Turnover: ~INR 400 Crore
Objective: Clovia, a leading D2C apparel brand, embarked on a quest to automate its finance processes, a vital step in supporting its ambitious growth plans. The objective was clear – find a solution that seamlessly integrates with both Tally and Vinculum instances, alleviating the challenges of data mapping, manual reconciliations, and time-consuming audits for the AP team.
Solution Provided: In the pursuit of a comprehensive solution, Clovia evaluated various players in the market, and IQInvoice emerged as the holistic choice. IQInvoice could automate Clovia’s end-to-end processes, ranging from capturing invoices via email to bank reconciliation. The standout feature was IQInvoice’s capability to integrate seamlessly with both Tally and Vinculum through a one-time setup, reducing integration costs by a remarkable 80% and slashing integration time from 6-8 months to just under 4 weeks.
IQInvoice’s AP and Payments Automation solution seamlessly linked with Tally and Vinculum systems, streamlining the entire process. The outcome was a simplified liability booking and vendor payment process, equipping Clovia with a detailed digital audit trail that significantly eased the audit process.
Quote from CFO, Leading D2C Apparel Brand: “IQInvoice’s AP and Payments Automation solution is robust and has automated the end-to-end process. The data now flows from both Tally and Vinculum systems to IQInvoice in a seamless way. This has massively simplified our liability booking and vendor payment processes, and now we have a detailed digital audit trail making our life easy during audits.”
Key Impact Areas:
- Rapid Integration:
- Less than 4 weeks to integrate with disjoint systems (Tally and Vinculum) and go live.
- Results:
- Single source of truth for AP data.
- <4 weeks to go live.
- ~80% reduction in integration cost.
- A happier AP team.
Results and Highlights: The solutions provided by IQInvoice empowered Clovia to experience exponential growth in certain areas, establishing a single source of truth for AP data, achieving rapid integration with significant cost savings, and fostering a happier AP team. IQInvoice’s seamless integration has positioned Clovia for sustained success in their dynamic D2C apparel industry.
Solution:
Clovia implemented an integrated vendor management system (VMS) consisting of:
- Self-service portal: Streamlined vendor onboarding with a user-friendly portal for vendors to submit applications and manage their information.
IQInvoice with Real-time Verification:
- MCA Verification: Ensured vendor legitimacy and compliance by verifying data against the Ministry of Corporate Affairs (MCA) registry.
- GST Verification: Guaranteed accurate GST information by cross-checking with the Goods and Services Tax (GST) database.
- Bank Verification: Confirmed vendor bank account details in real-time, minimizing errors and preventing fraudulent activities.
- Performance analytics: Provided data-driven insights into vendor performance, enabling better decision-making regarding partnerships.
- Seamless integration: Integrated seamlessly with the existing procurement and payment systems for a cohesive user experience.
Results:
- 70% Faster Onboarding: By eliminating manual tasks, the VMS reduced vendor onboarding time by 70%, allowing Clovia to onboard vendors rapidly and meet the demands of its growing business.
- Enhanced Compliance: Automated verification ensured all vendors met compliance standards, mitigating legal and operational risks associated with non-compliant partners.
Reduced Financial Risks:
- Reduced penalties: Real-time verification facilitated timely vendor onboarding, minimizing the risk of penalties from tax authorities due to late filing.
- Faster payments to MSME: Swift vendor verification enabled timely payments to MSME vendors, avoiding penalties and fostering positive relationships.
- Accurate ITC claims: Verified GST information facilitated accurate ITC claims, optimizing tax benefits and financial management.
- Minimized payment errors: Real-time bank verification reduced errors in vendor bank details, preventing payment delays and potential fraud.
- Data-Driven Decisions: The VMS provided actionable insights on vendor performance, empowering the procurement team to optimize vendor selection, negotiate effectively, and manage partnerships strategically.
- Improved Operational Efficiency: Automating routine tasks freed up the team’s time to focus on strategic initiatives, customer service, and optimizing vendor relationships.
Conclusion:
By implementing the comprehensive VMS, Clovia significantly streamlined its vendor onboarding process, ensured compliance, and leveraged data-driven insights for better decision-making. This resulted in faster growth, improved operational efficiency, and a stronger foundation for future success.