API

Transforming the accounts payable processes with Basware

Industry:

Healthcare, Retail & Leisure

Regions:

APAC

Solutions:

AP Automation, E-Invoice Receiving

By turning to Basware and its invoice automation solutions, API transformed its accounts payable processes, gained significant cost savings, and benefited from corporate-wide spend visibility. 

API is one of the leading service providers to the pharmacy industry in Australia and today has a relationship with more than 4000 independent pharmacies. API also owns and operates the Priceline retail store brand.  

API realised that to manage future growth, they needed a technology solution that could support more efficient AP processes, increase spend visibility, and provide them greater control. 

API was able to achieve payback on its investment in Basware invoice automation in just ten months, and we were able to reduce the resource required for invoice processing by nearly 25 percent.”  Raymond Walker, Group Accounts Payable Manager, API 

Key takeaways

25%

Productivity gain in invoice handling

10

months to achieve ROI

<70%

Of Invoices automatically processed

API's challanges

Previously, API used manual methods to process nearly 1.1 million invoices annually. The AP department would receive and manually process about 40 boxes each week of invoices and related materials, such as claims, proof of delivery, and purchase orders. 

This process was laborious, painfully slow, and time-consuming. It was very costly and made it nearly impossible for API to have visibility into its invoices or control over AP operations. API also had a complex technology landscape operating two distinct ERPs; an Epicor ERP to handle the payment for retail invoices and a Movex ERP system for pharmacy wholesale invoices. The new AP solution needed to integrate into both. 

After developing a clear business case and conducting a rigorous RFP process, Basware was selected as the best vendor to support API’s vision. 

Basware AP Automation stood out head and shoulders above the other solutions — no other was even a close second in terms of functionality and ease of use.Raymond Walker, Group Accounts Payable Manager, API

How Basware transformed API's AP process with automation

The implementation of Basware was complete within three months, and Basware was able to integrate into the different ERPs that API was operating efficiently.

A scanning process was established to scan all paper invoices and automatically route them to the correct business unit. The system also conducts straight-through processing of purchase orders (PO) within 2% of the PO value to allow payment to occur without any human intervention.  

API also committed to integrating the data being surfaced in Basware into its finance and procurements planning processes. Data-driven insights became the standard for identifying bottlenecks in AP’s processes and budgeting future procurement needs across the organisation. 

Basware AP Automation has truly transformed the way we do business. It has opened everyone’s eyes to information we didn’t have before and enabled us to take control of our AP operations. Thanks to Basware, we are benefitting from improved processes, increased accuracy, and significant annual savings.

Raymond Walker, Group Accounts Payable Manager, API 

Results

API was able to achieve payback of its investment in Basware AP Automation in just ten months, and it reduced the manpower required for invoice processing by nearly 25%. Less than 30% of PO-based invoices now require manual review. Similarly, non-PO-based invoices that fit within the tolerances of API’s contracts also flow automatically through the system without any human intervention.

Audits that used to take AP staff several days are now conducted directly and effortlessly in a fraction of the time by auditors using the Basware solution. Accruals are now based on actual information in the system instead of guesswork.

In addition, API had realised tremendous savings by identifying volume discount opportunities and early payment discounts. Supplier relationships have strengthened, and late payment on invoices is now a thing of the past.