From Manual to Automated: Transforming Invoice Processing with AI
A global consumer goods giant partnered with Lantern to revolutionize their accounts receivable process.
Facing challenges with diverse invoice formats and manual processing, Lantern developed the AI-powered AR Cash App. This innovative solution streamlined operations by automating data extraction from various invoice types and integrating seamlessly with existing SAP systems.
The results were transformative:
- 40% reduction in manual processing time
- 25% improvement in data accuracy
- 30% decrease in repetitive tasks
Employees reported better work-life balance, while the company saved approximately $750,000 in FTE costs.
The scalable solution not only optimized current processes but also laid the groundwork for future operational improvements across the organization, positioning the company for continued efficiency gains and cost savings.
Background
Being a global consumer goods giant means dealing with an immense volume of invoices from suppliers, distributors, and partners.
These invoices arrive in diverse formats—ranging from Excel spreadsheets to PDFs, emails, and CSV files. The manual handling of this extensive invoice flow posed significant challenges, including time-consuming data extraction, potential errors, and resource-intensive processing.
Our client was looking for a solution to streamline this critical aspect of their operations, leading to a collaboration with Lantern for an innovative approach to invoice management.
Solution Overview
Lantern built and implemented an innovative application known as the AR Cash App, designed to streamline invoice processing workflow.
The app leverages artificial intelligence to ingest invoices in various formats such as Excel, PDF, and email attachments, and efficiently extracts pertinent data. By integrating with our client’s existing SAP system, the AR Cash App not only automates data entry but also provides confidence indicators for each processed invoice, enabling the accounts team to prioritize their review based on the level of certainty in the data extraction.
As a result of this automation, the operational efficiency of invoice processing has significantly improved.
The AR Cash App’s ability to handle a variety of invoice formats has reduced the manual workload, allowing employees to focus on exceptions and complex cases. This shift has led to a better work-life balance for the staff, with reduced error rates and quicker invoice turnaround times.
Moreover, the integration with SAP ensures that the solution is scalable and can be adapted to other areas within our client’s environment, demonstrating the app’s potential for broader application in similar high-volume, low-margin businesses.
Strategic Implementation
Lantern’s innovative AR Cash App was strategically deployed, detailing the technical integration with Microsoft Azure and SQL Server, and highlighting the collaborative efforts that drove the project’s success.
- Deployment and Technical Integration: The deployment of the AR Cash App was a strategic move towards enhancing operational efficiency. The app, leveraging Microsoft Azure’s robust cloud infrastructure, was seamlessly integrated with our client’s existing SQL Server databases. This integration facilitated a smooth transition and allowed for real-time data processing and analytics.
- Operational Efficiencies: The AR Cash App significantly improved the invoice processing workflow. By automating the extraction and verification of data from various invoice formats, the app reduced manual entry errors and expedited the payment cycle. This automation led to a substantial reduction in full-time equivalent (FTE) hours, translating into cost savings and allowing employees to focus on more strategic tasks.
- Collaborative Effort: The implementation was a collaborative effort between our teams. Regular communication and joint problem-solving sessions ensured that the deployment aligned with our client’s business processes. The Lantern team provided continuous support and training, ensuring a high adoption rate and minimal disruption to the client’s daily operations.
Operational Impact
The implementation of the AR Cash App has led to significant operational efficiencies as well as an improved employee experience, quantified as follows:
Operational Efficiencies
- Reduction in Manual Processing Time: Automating invoice processing workflows reduced manual processing time by 40%. We achieved this efficiency by minimizing manual data entry and verification.
- Improved Data Accuracy: With the AR Cash App, our client improved data accuracy by 25%. Automated checks and balances caught and corrected data discrepancies early in the process.
Employee Experience Enhancements
- Workload Reduction: Employees reported a 30% decrease in repetitive tasks, allowing them to engage in more meaningful and strategic work.
- Breaks and Rest Periods: The reduction in manual workload contributed to a 20% increase in breaks and rest periods for employees, promoting better mental health and focus.
These operational efficiencies not only optimized our client’s business processes but also fostered a more productive and satisfied workforce.
Conclusion
The collaboration between Lantern and our client greatly impacted their operational efficiency.
- Value Delivered: The solution delivered significant time savings, error reduction, and improved employee satisfaction. These improvements have led to a more agile and responsive operational framework.
- Scalability Potential: The implementation serves as a model that can be replicated and adapted across various departments and global locations. The technology’s flexibility and adaptability ensure it meets our client’s evolving needs, promising continuous improvement and innovation.
The AR Cash App, powered by Microsoft’s cutting-edge technology, streamlined processes, enhanced data accuracy, and improved employee experience.