Imagination
August 2007 - Issue 01
UNDER THE MICROSCOPE
The Challenge: Lakeland found processing its monthly flow of 4,000 supplier invoices costly and inefficient. The business struggled to know where invoices were in the approval cycle and wanted an alternative to dedicating space to paper invoice storage.
The Solution: A custom solution from Image Integrators introduced document scanning, an automated workflow for invoice approval and integration with CODA-Financials.
The Result: With electronic invoices now widely available for secure viewing and timely approval, the company is enjoying process efficiencies together with space and cost savings.
“Having chosen CODA-Financials, the next step was to choose a document management solution for Accounts Payable that would substantially improve efficiency, seamlessly integrate with CODA and be scalable for other areas of the business. Procura from Image Integrators has met and exceeded our expectations.”
Chris Long, Financial Director, Lakeland.
Rapid expansion, an international supplier base and a product range of 4,000+ items combined to present Lakeland with process challenges. As its business grew, so did the flow of supplier invoices. The process of circulating, approving, storing and managing these invoices became increasingly space-hungry and labour-intensive and presented itself as an obvious candidate for automation.
The Challenge
With fast growth came the realisation that systems and processes needed updating and streamlining. A key area of inefficiency was that 4,000 paper-based supplier invoices were received monthly and had to be forwarded for approval to different individuals. Manual routing resulted in a lack of clarity as to invoice location, physically and within the approval cycle.
“The paper purchase invoice was also proving costly. Documents were taking up valuable floor space that could be better utilised. We also struggled to keep track of who had taken a paper invoice and where it was at any given time,”
notes Chris Long.
The Process
Having identified the inefficiency of paper purchase invoices, Lakeland spent considerable time and resource investigating document management solutions, looking at both outsourced and onsite technologies. Lakeland wanted a solution that was simple to use, scalable and would integrate seamlessly with CODA-Financials.
Its supplier was important too, with Lakeland seeking a partner with whom it could build a long-term relationship and who would take time to understand the inherent inefficiencies of its system and provide a custom solution.
The Solution
Image Integrators devised a solution that incorporated document management ‘best practice’ in a way that guaranteed tangible gains and a rapid return on investment. The team worked closely with inhouse staff during the implementation, with project management playing a significant part. The solution was integrated to PRINCE2 (Projects IN Controlled Environments) standards, ensuring that every stage of the process was structured.
The solution involved installing an onsite Fujitsu M4097 scanner with VRS (Virtual ReScan), the latest in enhancement technology. This allows scanned images to be enhanced to make them as clear, and sometimes clearer, than the original. The de-skewing function also ensures that images not fed correctly into the scanner can be processed without rescanning.
Once scanned, the purchase invoices are sent into an automated workflow for approval and query resolution. A system-generated email notifies approvers that documents are waiting for their attention. Full auditability is also built into the system, so Lakeland is now always aware where the invoice is within the approval system.
“We’re delighted with the Image Integrators’ solution. We scan all incoming purchase invoices and have them automatically routed for approval. Our staff have said they would never wish to go back to a paper-based system.”
The desired level of integration with CODA-Financials has also been achieved. Scanned purchase invoices are automatically indexed with values from CODA-Financials and system users can view an electronic version of an invoice by simply clicking on the CODA screen.
The Benefits
Lakeland is enjoying a robust and stable solution, with all incoming purchase invoices scanned on receipt and put into an automated workflow cycle for efficient invoice approval. There is no longer a need to store paper invoices. The legal admissibility of scanned images means Lakeland can shred the originals. As a result, storage space is better utilised.
As invoices are routed through an approval workflow procedure, the company knows the precise location and status of each invoice at any time. Approval takes place securely from any location using the internet-based system. Full document auditability and the ability to make notes against scanned images are included. Employees from any department can view the scanned images, resulting in an unparalleled level of invoice transparency. For maximum flexibility, original invoices can be viewed from within CODA-Financials, from the automated workflow or from the Procura solution.
“Since the solution was implemented, we have realised massive efficiency gains and we no longer suffer paper inefficiencies,”
concludes Chris Long.