The implementation has allowed Gardner Denver to process invoices more quickly, more accurately, and with fewer staff.
Manufacturer blows away invoice processing costs
Growth is good. At compressor, blower, and liquid ring pump manufacturer Gardner Denver Inc., however, growth has meant a growing glut of invoices to process.
In the United States, Gardner Denver processes approximately 200,000 invoices from 6,000 vendors annually. In Germany, the company processes about 110,000 invoices from 2,000 vendors. And those numbers are on the rise.
Not surprisingly, the company recently started looking to automate its accounts payable processes to cut costs, improve efficiency, and minimize errors.
Initially, the company planned to outsource for the process and cost benefits, but didn’t want to relinquish control of documents and responsibilities. Instead, Gardner Denver decided to implement Brainware’s Distiller software for invoice processing. The result has been dramatic, with the company significantly reducing invoice costs and backlogs.
“After performing a value stream map and Kaizen event of our accounts payable process, Gardner Denver contracted with Brainware…to automate the company’s accounts payable function and reduce waste,” says David J. Antoniuk, vice president and corporate controller. “The result in 2010 was a 23% reduction in the cost per invoice, and achievement of best-in-class invoice processing performance.”
Gardner Denver selected Brainware because of its intelligent data capture features and its ability to integrate with Gardner Denver’s existing SAP ERP platform. Brainware also allowed for a significant portion of the company’s invoices to be processed with no human involvement.
As a result of this implementation, Gardner Denver is processing invoices more quickly, more accurately, and with fewer staff. In addition, all invoices can be processed, routed for approval, and viewed electronically.
Prior to implementation, Gardner Denver leveraged Lean methods to reduce costs, and this automation has allowed them to achieve an additional 20% gain in efficiency. Invoice backlog has been reduced by 35% year–over-year and continues to shrink.
The company’s rate of straight-through invoice processing is near 50% in the United States, with the goal of 60% in the near future.
Brainware has provided a clear boost to Gardner Denver’s Lean initiatives. The company anticipates a complete return on investment within the next year.