To help customers mired by paper-based payment processes, Tecnics Integration Technologies wanted to create an automated invoice management solution.
Tecnics used IBM software to build the integrated invoice platform that accelerates and standardizes processing while giving clear visibility into operations.
Cuts operating costswhile delivering increased visibility into payments
<1 day to process new invoiceson average, compared to manual efforts that often take 3 - 5 days
Improves service qualityand vendor relations by issuing payments more quickly
Business challenge story
Over the past two decades, Tecnics has built a broad, multinational customer base that spans several industries. And while developing productivity solutions for these various companies, the business recognized a common issue that spanned geographies and markets—inefficient invoice processes.
“For many of these companies, the number of people involved in handling these invoices is huge,” explains Narendra Kumar, Business Development Manager at Tecnics. “Larger organizations can receive thousands of invoices each day, often needing three or more days to fully process them.” And if there are questions or complications that need to be resolved—such as a potential duplicate payment request or mismatched totals—the process frequently drags on for several more days, frustrating suppliers and vendors.
“The real issue is that they don’t have enough transparency,” adds Gopal Rao Vanam, ECM Architect with Tecnics, “which makes it hard to plan anything. They don’t know how many invoices are pending at a given time. They can’t tell how many they are processing. There are a lot of questions they just can’t answer.”
Building a solution
Realizing that a streamlined process could help bring efficiency to its customers, Tecnics developed an automated invoice scanning and approval system that uses IBM technology.
“We created an end-to-end platform,” explains Vanam. “When an invoice is received by our solution, the payment is processed automatically, and the invoice is stored in a central repository that can be accessed from anywhere at any time by the customer. If there is a problem or question, payment staff can use the system to send an email or SMS directly to the vendor, and all of these messages are automatically logged and recorded.”
IBM® Datacap software provides the OCR and multichannel image capturing capabilities for the incoming invoices. And once a document has been captured, it is imported into an automated invoice management and approval workflow supported by IBM Content Foundation and IBM Case Manager technologies. Account administrators, in turn, can take advantage of IBM Content Navigator software to explore individual accounts or investigate discrepancies, and an IBM Content Collector for SAP Applications solution oversees the archival and long-term storage of this payment information after the invoicing process has been completed.
By taking advantage of the automated solution, users routinely cut their overall management costs while accelerating the payment of incoming invoices. And typically, these requests are now processed within one business day of being received.
“We had one customer, a manufacturer,” recalls Vanam, “who cut its operating costs by 35 percent by using less paper. And its workers were also more productive, with one person handling 4 - 5 times more invoices than before.”
“And a drug company we worked with,” adds Kumar, “was able to be much more efficient. What used to take them five days, they can do in less than a day, so they were able to cut their invoice headcount in half after only six months.”
“Vendors are happier now,” continues Vanam. “If they submit a clean invoice that has no questions, they can usually be paid in a matter of hours. And even if there are issues, it’s normally taken care of in under eight hours.”
Altogether, Tecnics is pleased with its choice to partner with IBM. “IBM is the leader in the ECM market,” concludes Vanam. “The out-of-the-box function of the IBM products was just what we needed and made it easy to build out the OCR platform.”
Tecnics Integration Technologies
Founded in 1998, IBM Business Partner Tecnics designs and delivers end-to-end solutions intended to help businesses transform themselves in a manner that improves their efficiency and productivity. The business is headquartered in Houston, Texas but also maintains regional offices in both India and Dubai, servicing customers throughout the Middle East, South Asia and the Americas. Alongside its consulting efforts, Tecnics designs software products and solutions for the energy, entertainment, pharmaceutical, manufacturing, banking and engineering industries.
Take the next step
To learn more about the IBM solutions featured in this story, please contact your IBM representative or IBM Business Partner, or visit the following websites:
- IBM® Case Manager
- IBM Content Collector for SAP Applications
- IBM Content Foundation
- IBM Content Navigator
- IBM Datacap
To learn more about its efficiency-driving solutions and what Tecnics can do for you, please visit: Tecnics Integration Technologies