Industry:
Software & Telecomms
One of Finland's largest telecommunications companies, DNA, managed to significantly increase the efficiency of its P2P process by opting for an automation-enabled solution.
Motivated by external and internal reporting requirements necessitating expedited financial administration processes and month-end activities, DNA embarked on a journey to revolutionize its P2P process..
Prior to implementing Basware, DNA manually processed a substantial volume of recurring invoices, consuming valuable time that could have been more effectively directed toward meaningful work. Recognizing the limitations of a “digitized manual process,” DNA sought a solution to significantly enhance automation within the P2P process.
Key Takeaways
100%
Supplier adoption
67%
e-invoice rate
50%
Automation matching rate
DNA's Challenges
One of the challenges faced by DNA was the lack of integration between its existing procurement and finance functions.
Procurement was dispersed over several systems and had no connection to the company’s finance function. There was also a significant amount of maverick spending taking place. Individual Procurement Managers were typically responsible for managing supplier contracts, making information about contracts challenging to access.
Cohesion and transparency across both functions were critical. DNA needed a multifunctional solution that could integrate with existing technology and automate everyday P2P tasks.
How DNA transformed their P2P landscape with Basware P2P
A process of change management was introduced, and all purchasing was mandated to go through the Basware systems. The end-users were provided training to learn how to use free-text form orders or pick out products from catalogs. At the same time, DNA suppliers we’re engaged to be on-boarded to the new system and guided on how to integrate.
In the beginning, we had to explain to suppliers what integration of their webshop to our e-procurement system with a punch-out solution meant, and in which format we wanted the catalog. Mikko Lampinen, Logistics Department Head, DNA
DNA adopted uniform contract templates and centralized contract management into the Basware Contract Lifecycle Management system. Automatic alerts were set up to monitor when contracts are close to expiration. Access was then set up to ensure contracts were readily available to procurement and legal departments.
Finally, cost centers and account coding were standardized and integrated to ensure every purchase could be correctly assigned to a budget. This also unlocked the ability for automatic payments to be made.
Today, a supplier’s online store can be integrated with DNA’s purchase-to-pay system in less than an hour, and catalogs can be delivered in minutes.
Mikko Lampinen, Logistics Department Head, DNA
Results
DNA has achieved its goals of enhanced predictability and faster month-end closing. User adoption has been strong, with DNA’s employees growing accustomed to the new P2P process and providing regular feedback to improve operations. Maverick spend has been reduced, and manual invoice processing is a thing of the past.
We now know that prices and account codes will be correct, so POs are automatically matched to invoice, eliminating the need for manual invoice approval.Kyösti Bergdahl ,Development Manager, DNA
Invoices no longer get stuck waiting for review and approval, and DNA has improved their paid on-time percentage. Over 50% of recurring invoices are automatically matched, and there is a 40% automatic matching rate for non-recurring invoices.
Supplier Relations have improved, with suppliers having a solid understanding of the procurement process and its requirements. A supplier’s online store can be integrated with DNA’s P2P system in under an hour, and catalogs can be delivered in minutes. The number of catalog and punch-out integrations is continuously increasing.
Finally, contract management has also improved. DNA can search for all valid contracts until further notice, or all contracts with a particular supplier – if needed, the original contract can be accessed immediately. This makes the management of contracts significantly more efficient. Employees save a lot of time now that contracts are in one place and can be searched using the relevant criteria.