Accelerating Value: A Glimpse into the Future of Touchless Invoice Processing
The evolution of accounts payable (AP) is reaching new heights with advancements in automation, artificial intelligence (AI) and machine learning. In a recent EBG webinar, “Accelerate Time to Value with Touchless Invoice Processing,” industry leaders and practitioners gathered to explore how organizations can transform AP processes to unlock greater efficiency, transparency and business value.
Setting the Stage: Challenges and Opportunities in AP
Hosted by Anna Bjärkerud of EBG | Network, the session emphasized the complexities businesses face in modernizing AP processes. While automation promises touchless invoice processing, challenges like fragmented ERP systems, poor master data quality and low PO penetration often hinder progress.
Benjamin Cech from Terex Corporation shared his organization’s journey of implementing Basware to unify AP operations across diverse ERP systems. Starting in 2016, Terex transitioned to a shared service model, focusing on reducing manual intervention and aligning their processes with global business services (GBS). Benjamin highlighted the importance of setting realistic goals, such as achieving incremental improvements in touchless rates and continuously optimizing supplier collaboration.
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A Blueprint for Transformation
Imro Budhoo of Basware outlined a structured approach to AP automation, emphasizing a cyclical framework of Planning, Engaging, Measuring and Adapting. This blueprint ensures businesses can align automation efforts with measurable outcomes. A few key takeaways from the Basware methodology included:
- Data-Driven Insights: Using analytics and process mining to pinpoint inefficiencies and track touchless processing rates.
- Collaborative Engagement: Partnering with suppliers and internal teams to align on automation goals and improve invoice quality.
- AI and Machine Learning: Leveraging predictive analysis for invoice coding and exception handling, reducing the need for manual interventions.
Real-World Insights from Terex
Benjamin provided an inside look at Terex’s AP transformation:
- Master Data Quality: Early setbacks in automation stemmed from fragmented supplier records. A rigorous focus on cleansing and standardizing data significantly improved touchless rates.
- PO Penetration: Terex adopted a “no PO, no pay” policy and invested in training purchasing teams to enhance PO accuracy and reliability.
- Threshold Adjustments: Introducing automated variance matching within a $50/1% threshold increased efficiency without compromising control.
While Terex has made strides, Benjamin acknowledged that touchless invoice processing requires ongoing collaboration between AP and purchasing teams and strategic use of technology.
The Role of Technology in AP’s Future
As the session concluded, both speakers turned their focus to emerging technologies. AI and machine learning are transforming AP, enabling smarter invoice coding, improved fraud detection and predictive analytics. These advancements promise to:
- Enhance supplier collaboration by offering automated feedback loops.
- Reduce exception rates by proactively addressing recurring discrepancies.
- Shift AP teams from manual processing to strategic roles focused on value creation.
Key Lessons for AP Success
- Start with Data: High-quality data is the foundation of automation. Invest in master data management and ensure consistency across systems.
- Collaborate Across Teams: Engage procurement, finance and suppliers to align on automation goals and drive compliance.
- Leverage Technology Strategically: Use AI-driven insights to pinpoint inefficiencies and prioritize impactful changes.
- Take a Gradual Approach: Start with high-potential areas and scale automation over time.
Final Thoughts
The journey to touchless invoice processing is not just about reducing costs—it’s about enabling agility, control and strategic focus within organizations. As Benjamin aptly noted, automation frees up time for AP teams to work on higher-value initiatives, driving long-term business success.
For organizations embarking on this transformation, the road may be complex, but the rewards—greater efficiency, visibility and control—are well worth the effort.
About Terex Corporation
Terex Corporation is a global manufacturer of aerial work platforms and telehandlers, utilities industry equipment, materials processing machinery, and tower and rough terrain cranes. Terex designs and builds quality products used in construction, maintenance, manufacturing, energy, minerals and materials management applications. The origins of Terex date to 1933, when the Euclid Company was founded by George A. Armington to build hauling trucks. The Company grew and diversified over the years, principally through acquisitions. The name Terex was coined in 1970 by then-owner General Motors from the Latin “terra” (earth) and “rex” (king). In 1991, Terex was first listed on The New York Stock Exchange (NYSE:TEX).
About Basware
Basware offers the largest open business network in the world and is the global leader in providing networked source-to-pay solutions, e-invoicing and innovative financing services. Our technology empowers organizations with 100% spend visibility by enabling the capture of all financial data across procurement, finance, accounts payable and accounts receivable functions. Basware is a global company doing business in more than 100 countries and is traded on the Helsinki exchange (BAS1V: HE).
Find out more at basware.com