Industry:
Manufacturing
When INNIO went through a Private Equity buyout they needed a new AP solution implemented at speed. Read how Basware helped deliver this and millions in annual savings.
When INNIO went through a private equity buyout in 2018, they partnered with Basware to implement a new AP system to support their global organisation. With Basware's support, INNIO has delivered significant efficiency gains, centralised its shared services, and unlocked millions in early payment discounts.
INNIO Jenbacher designs and manufactures gas engines and cogeneration modules in the Austrian town of Jenbach in Tyrol. The global organisation is a leading provider of renewable gas engines and works with over 10,000 suppliers.
Key takeaways
95%
Spend under control
85%
e-Invoicing rate
70%
invoice matching rate
INNIO's Challenges
In 2018, a private equity investor purchased INNIO Jenbacher from its parent company General Electric
For the first time, INNIO required its own standalone accounts payable (AP) system, and with the carve-out from GE dictating the schedule, the system needed to be implemented at speed.
With a large volume of PDF invoices, INNIO looked for a flexible solution with sufficient recognition software and mailroom services. The solution needed to support INNIO in multiple markets and help with their vision of centralising AP services in one location.
Finally, the solution needed to fit into INNIO’s best-of-breed approach and integrate with INNIO’s Oracle ERP.
How INNIO achieved 100% data recognition with Basware
After reviewing six vendors, INNIO selected Basware due to its open architecture, high invoice recognition capabilities, and global mailroom services. INNIO was assigned a dedicated project team for implementation responsible for monitoring and resolving issues as the solution was rolled out to the different legal entities.
While initially opting for the standard “out-the-box” solution, INNIO later worked with Basware’s consultants to develop a more bespoke set up to fit their exact needs and revised internal processes to drive up automation levels.
Additionally, a supplier enablement campaign was launched to educate suppliers in onboarding to the Basware Supplier portal.
We’ve saved millions of euros a year from a discount perspective, which for an INNIO-sized company is a big thing.
Gergely Szappanos, Finance COE Lead, INNIO
Results
Basware was able to address the immediate needs of INNIO and support them as they separated from GE. Basware has then worked with INNIO in driving increased efficiencies across its finance processes.
The mailroom service is flawless. We don't really have any discussions on that topic. It's working in the background. We don't even know it exists because it's so seamlessZoltan Fuszek, Program Manager, INNIO
Today, spend-under-control is 95%, the e-invoicing rate is 85%, and automatic matching sits at 70%. These high levels of automation have allowed INNIO to centralise its AP functions from 10 locations down to a single team in Budapest.
In the last 12 months, the resource requirements have been reduced by 30-50%. Also, the AP team can focus on more value-added activities, such as leveraging early payment discount invoices, creating payment plans, and improving the overall efficiency of the AP function.
According to Szappanos, the AP team can prioritise almost half of the invoices they receive and see an invoice in the system within 30 minutes of a supplier submission. The integration with the Oracle ERP is seamless and passes back all invoice data efficiently. Once the invoice is automatically matched, it’s processed and prepared for payment on the same day.
Since implementing Basware, INNIO has unlocked millions of Euros a year through early payment discounts, which is significant for a company of its size.