Automation begins, where digitization stops

"For years the market has been asking for digitization of document flows," says Jeroen Rozeboom, Sales Manager at ICreative. In particular the digital processing of incoming invoices. There are only advantages to this: transparency in the process, invoices and attachments retrievable at any time, easy "auditability", sharing knowledge, and so on. The sooner the document is digital, the better, is the credo.

The digital tunnel vision

In recent years, full automation, or "robotization," of the Accounts Payable (AP) process has become increasingly popular. Invoices must be "matched" with orders and/or contracts fully automatically, and preferably at the line level, so that no human intervention is necessary to process invoices. "Straight Through Processing" is the goal. Because with it, significant cost savings can be realized and qualitative improvements can be made.

Jeroen: "Despite the flirtation with full automation, companies mainly invest in improving the scanning and recognition process, without asking themselves what is the best way to get the right data in order to really automate the AP process. Why does one want to get data on an image 100% recognized, when the source of the data is already owned, in the form of an ERP or similar system?" In practice, automatic recognition at the line level will yield a maximum of 70% of the available data. This requires a considerable amount of time and energy to be spent in advance training the recognition software. And because 100% recognition will not be achieved, at least 30% of the data needs to be completed manually. For every invoice. Every single day.

Automated invoice processing requires a different view

Most organizations claim to have an automated AP process, but in fact there are still significant efficiencies to be made once you let go of the existing processes, and their digitization, and begin to see the benefits of automated invoice processing. "That realization may start with letting go of the very digitization of documents (paper) and images (PDF), and with the introduction of electronic documents such as the electronic invoice (e-invoice)," Jeroen says.

"We often hear that this is impossible, or that it is not done, to ask that of suppliers. All sorts of objections are raised not to make an automation move that requires suppliers to be involved." The enormous benefits that automated invoice processing will have on efficiency and cost reduction then falls on deaf ears. But why does the Netherlands' largest e-retailer succeed? So why does the Netherlands' largest insurer succeed?

Take the insurer. They receive all their invoices in one standard XML format, regardless of origin, after which the data is processed directly in the ERP system. Matching, booking and payment are done fully automatically, without human intervention. In parallel, they are conducting campaigns to make suppliers aware of the advantages of electronic data traffic, with which a more efficient and sustainable process can be jointly realized. Jeroen concludes, "They reduce their operational costs and thus perpetuate the customer-supplier relationship. And because of the "continuous improvements" program, it gets even better every day."

What does it take for automated invoice processing? Commitment and the drive to achieve operational excellence. Perseverance, and a partner with expertise. Wondering what automation of your purchase to pay process means for your company (and suppliers)? Feel free to send me an e-mail or give me a call. We'll have a look at it together.

Jeroen Rozeboom
Sales Director, ICreative
jrozeboom@icreative.nl
06 45 974 097