Beginning with the adoption of SAP as its Enterprise Resource Planning (ERP) tool, the company selected Kofax MarkView for AP for its integration with SAP and its proven track record of implementing best practices for complete processes. Kofax's extensive experience in finance automation, its robust out-of-the-box functionality, and its validation by third-party experts such as Gartner Group and Hackett Group were also key factors in ConAgra Foods' adoption of Kofax MarkView for AP.
A phased, multi-faceted, multi-year approach that featured the establishment of a shared business services center in Omaha, Nebraska, for accounting transactions, including accounts payable, bookkeeping, time and expense, inventory, payroll, and accounts receivable. Initially, ConAgra Foods processed 250,000 invoices annually, and they expected the volume to grow to more than one million annually.
The challenge
At the beginning of this multi-year process, ConAgra Foods' operations were distributed and managed plant by plant or function by function, involving various systems and processes for accounts payable, as well as several sets of controls, audit processes, reporting processes, and storage systems.
Invoices were received on paper at each plant and managed with the plant's specific processes and technologies. Invoices were saved using P8 after scanning and storage, or in printed form. It was difficult to collect business metrics for analytical purposes across these distributed systems, and there was a lack of accuracy in tracking the number of invoices, the cost of each, early payment discounts, and the impact on key suppliers. Additionally, there was insufficient visibility into the invoice approval process, as well as limited procurement effectiveness and complicated manual controls.
The solution
ConAgra Foods worked with Kofax to implement SupplierExpress with MarkView workflows. “Kofax created two custom workflows for our team. One for non-SAP marketing invoices, and one for Freight Pay invoices. These custom workflows have helped us convert marketing and freight pay to our standard ERP process. Invoices that come into the system, whether via email, fax or mail, get scanned into the system, and then go into our standard workflow queue,“ explains Pam Russavage, Accounts Payable and Document Management Financial Manager. “Some get routed for approval while others get matched to a purchase order. It has been a tremendous advantage for us to have the invoice details within the system. It has really improved our processing.”.
The adoption of Kofax MarkView for AP notably simplified the invoice processing for ConAgra Foods by eliminating the receipt of invoices at multiple locations and establishing immediate capture of invoices received via fax, email, and EDI (Electronic Data Interchange) at a central location. Invoices are now immediately captured in SAP, and a streamlined workflow handles exception management, coding, approval, and payment, ensuring increased efficiency.
The Results
ConAgra Foods AP Group 40 percent of your provider's calls have been eliminated through the implementation of Kofax SupplierExpress, which improved the efficiency of the accounts payable department. Russavage explained, “Most suppliers have become experts in using the tool after one or two sessions in the system. Since SupplierExpress is intuitive and flexible, they can get the information they are looking for quickly.". We have eliminated 40% of the calls we receive, including a large number of repetitive ones. That was the goal.”.
As the volume of invoices processed has increased and support calls have decreased, ConAgra Foods has been able to reduce staff and save up to 25 percent on your traditional labor costs in the accounts payable department. ConAgra Foods has also derived great value from its ability to gain visibility to invoices across the enterprise, from the accounts payable department team to the procurement and receiving of equipment at various plants to resolve discrepancies.
When measuring return on investment, ConAgra Foods observes the reduction in the complete workflow, the reduction in support calls, and the number of invoices paid in accordance with terms. “We wouldn't be anywhere near where we are without the comprehensive capabilities that MarkView and SupplierExpress have given us,” said Russavage.
“When we started this process three years ago, 55 percent of invoices were overdue when they came in. Today, 93 percent of invoices are paid according to terms. That's a huge turnaround.”.
Moving forward, ConAgra Foods believes its Kofax solutions can help in two major ways: by using SupplierExpress to enable suppliers to get updated shipping information electronically and by leveraging information captured in queues and using MarkView’s analytics tools to complete a root cause analysis.
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