Consolidation of the finance functions into a single shared service center (SSC) together with Basware's invoice automation solution helped deliver significant time and cost savings. Today over 90 % of Heineken's purchase invoices are matched automatically.
In 2004, Heineken Nederland took the decision to consolidate its IT, HR Facilities Management and Finance functions into a single Shared Service Center (SSC) which would service the 25 business and sales units across the country.
One of the key aims was to deliver efficiencies in the SSC Accounts Payable department, which handles 430.000 purchases invoices every year, many of which were still paper based. The goal was to reduce the time and resource dedicated to the manual processing of these invoices and to create an end-to-end automated invoice processing solution, from scanning, order matching through to archiving.
Seamless integration with existing ERP systems
Having looked at the solutions available, Heineken selected Basware Invoice Automation to deliver the control and efficiency the AP department required. The solution was particularly strong in two key areas for Heineken; Basware anyERP provided easy integration with Heineken’s multiple ERP systems, and the matching delivered the accuracy and speed of invoice processing to streamline the AP department workflow.
Today, the Basware solution accesses five different ERP systems to find the relevant Purchase Orders (PO) after which it automatically matches the incoming purchase invoices with the pre-approved purchase orders.
This eliminates the need for further approval workflow and generates both time and cost savings. Once the system has matched the purchase invoice to the PO, coding and audit trial on the POs is automatically copied to the invoice, which is then automatically forwarded to the ERP system for payment.
High matching rate delivers significant savings
The Basware solution now processes 230,000 electronic and 200,000 paper invoices. Of the 230,000 electronic invoices, 210,000 are completely automated from receipt to payment.
Expected time savings on invoice processing include:
- 60% on all order related paper invoices
- 40% on all non-order related paper invoices
- 95% on all electronic invoices
The system was successfully rolled out across the SSC in just nine months, from first proof of concept to going live with the first SAP environment.
The first phase of the project has delivered an automated process for all invoices which relate to purchase orders, nearly 60% of the total, from data input to payment. Heineken expects this figure to rise significantly as more suppliers move to electronic invoicing, further improving the efficiency of the process.
“The time to approve paper and electronic invoice has fallen dramatically, allowing us to devote resource to higher value core tasks,” explains Ed Prins.
“The key success factor for this project was how easily we could integrate invoice processing with our complex ERP environment.
The Basware solution has proved incredibly flexible, providing a seamless integration with our existing systems."