MAJOR FRENCH AUTOMOTIVE MANUFACTURER

The Challenge:

INEFFICIENT P2P PROCESSES CAUSING REDUCED CASH FLOW

The automotive company noticed that its procure-to-pay (P2P) process had an abnormally high year-to-year cost increase.

Every process evolves over time and new paths are created. P2P processes are no exception to this rule. When put together, an inefficient P2P process can be very costly to the company:

• Reduced cash flow
• Late payment penalties
• RIB changes not taken into account

It is therefore crucial for financial process managers to equip themselves with the best tools.

The Solution:

QAD PROCESS INTELLIGENCE ENABLES A DYNAMIC VIEW OF ACTUAL BUSINESS FLOWS FOR DISSECTING PROCESSES AND ISOLATING VARIATIONS

By connecting to the client’s ERP, QAD Process Intelligence was able to model the P2P process. This representation highlighted the price changes following the issuance of a purchase requisition and their impact on lead times and cash flow.

QAD Process Intelligence returned control to their operational staff through the software’s real-time and dynamic vision of actual business flows. They were able to dissect their processes at each step and isolate variables such as suppliers, countries or invoice amounts. The platform highlighted all non-compliances and automation opportunities, and provided active alerting to prevent future deviations from cascading into larger issues.

The Benefits:

$12M IN CASH SAVED AFTER ONLY THREE MONTHS OF ML MONITORING

In three months, QAD Process Intelligence enabled this company to monitor the paths of more than 200,000 purchase orders.

The monitoring capabilities enabled the operational staff to receive a notification as soon as a purchase order was automatically validated. These alerts allowed them to adjust the parameters of this automated step and thus save more than $12M of cash and reduce the time needed to issue purchase orders.

• The software demonstrated an overall increase of $60M/year related to automatic validations when price increases were no more than $1
• Increased responsiveness on automatic approvals thanks to the alerting system
• Optimized the automatic purchase order validation process