A mid-sized distribution company was processing their incoming invoices manually. On a monthly basis, they would receive and process over 5,000 inventory invoices from over 1,000 different vendors; the field data contained was entered manually by three full-time employees. The distribution company was dissatisfied with this expensive and slow process. Initially the company attempted to optimize their invoice processing by converting vendors to EDI transmission. However this proved largely ineffective due to implementation and cost issues. The company wanted to streamline their accounts payable process while accelerating the task of data entry. This led the company to look for an automated invoice processing solution that could achieve high recognition rates while being able to integrate with their existing business system.
The company implemented SoftWorks AI’s Trapeze for Invoice Processing software to automatically extract field information from invoices. After invoices were scanned, they would be processed through Trapeze to automatically recognize and extract vendor, PO, price, tax, totals and line item information, then match it to the purchase order information from their business system. The solution was able to correctly recognize field data with over 90% accuracy. The extracted invoice data was exported into SoftWorks AI’s validation module for an employee to validate the correctness of the information extracted. Once the information was validated, the invoice data was populated into the business system.
By automating invoice processing, the company was able to reduce accounts payable costs, while integrating into their existing workflow. Trapeze was able to increase the volume of invoices processed from 300 per day with three employees to 500 in five hours with one employee. This allowed the data entry employees to be repurposed to more value-adding positions, to the benefit of the overall company. Trapeze proved to be an easy to use tool that employees could be quickly trained to use to both process invoices and later verify them. Through an automated approach the company was able to reduce overall accounts payable costs while improving invoice processing, resulting in more early payment discounts.