Industry:
Leisure
Enhancing AP effectiveness and implementing Basware P2P for improved visibility and management.
In the face of the initial challenges posed by Covid, Flight Centre Travel Group Finance team, with its global presence spanning over 30 brands across 25 countries and a workforce of 15,000, embraced and accelerated its operations using Basware’s solutions. The aim was to establish better cash control during the pandemic and implement streamlined processes, anticipating post-pandemic growth.
Over four decades, Flight Centre Travel Group (FLT) has achieved remarkable global expansion with transitional value set to exceed $23 billion during the 2024 fiscal year. To support the company’s growth ambitions, the Finance department recognized the need to invest in solutions that would streamline AP functions and Global Payments procurement.
Recognizing the need for a cohesive and scalable solution, FLT committed not only to streamlining its AP invoice function but also to undergo a comprehensive upgrade by adopting a modernized P2P system. This strategic move was driven by the determination to ready the finance department for the dynamic challenges ahead.
Optimizing the process
70%
Touchless Invoice Processing rate in 6 months
1 Day
Average processing time
150k
Processed invoices per month
Flightcentre's Challenges
Pursuing AP Automation excellence
FLT’s unique approach to the matching process, which involved pulling accruals into Basware, conducting matching exercises, and integrating with Microsoft Dynamics 365, posed customization challenges. The traditional three-way matching system couldn’t effectively meet FLT’s matching process needs, requiring the chosen AP solution to substantially adapt. This adaptation was particularly crucial given the significance of the booking code as a central matching component.
“The implementation team was amazing. They kept asking if there was anything they could do to help. They were very solution-focused and customer centric - the project rollout was a really great experience.” Elaine Lee, Head of Transactional Finance and Continuous Improvement, Flight Centre
Despite having to stand down a high percentage of its global workforce due to Covid, FLT’s financial systems needed upgrading. With 150,000 invoices processed monthly in various formats, FLT needed a solution that could scale with high volumes and an experienced implementation team that could operate within Covid restrictions.
FLT understood that the key to improvement was to measure, as emphasized by Elaine Lee, Head of Transactional Finance and Continuous Improvement: “What gets measured, gets done.”
The local Australian implementation team and FLT aligned on the goals, creating a positive project team experience. The high level of custom build required for the unique matching system was appreciated by FLT. The customer-centric and knowledgeable project managers played a crucial role in pushing for an on-time go-live.
Accessing real-time reports with Basware makes it so much easier. I can effortlessly access the data ensuring we’re on the right track and making informed decisions for success.”
Elaine Lee, Head of Transactional Finance and Continuous Improvement, Flight Centre
How Basware's P2P solution is supporting the Flightcentre
FLT has strengthened financial controls using the P2P process, aligning seamlessly with procurement processes and local compliance policies.
Apart from China and Malaysia, cash and accounts are managed centrally, providing clear visibility into cash status and management for faster, more informed decisions. Consolidating smaller payments into monthly transactions has effectively reduced transaction fees. This newfound cash visibility has significantly impacted their understanding of available funds, both presently and in the future.
The implementation of spend plans has increased productivity and efficiency. Automatic approvals for recurring invoices streamline processes and contribute to improved supplier relationships, as payment timelines become more predictable within the established spend plans. A centralized support team efficiently manages any queries after payments are approved and POs are in place.
This strategic shift has resulted in operational teams no longer handling payment queries. A dedicated central support team now manages these tasks, enhancing efficiency. The Contracts Team is now responsible for setting up spend plans, eliminating concerns about payment timelines. With an approved spend plan and purchase order in place, financial responsibility seamlessly transitions to the support team, providing a simplified process.
Results from the AP Automation investment
With matching rates soaring from 30% to 70%, the results are impressive, marking just the beginning of the optimization journey. Achieving this required educating suppliers on proper invoice submission practices, avoiding duplication, and emphasizing the inclusion of booking numbers.
Enhanced visibility across the AP process simplified the identification of problematic areas, enabling efficient resolution at the root cause. Through this increased transparency the AP team was also able to identify suppliers responsible for invoice issues.
Continuous improvements aim to surpass the industry standard matching rate of 80 to 90%. Despite the rising volume of invoices, the AP team has become more efficient, redirecting saved time from manual tasks to activities that add more value to the business and contribute to a more fulfilled AP team.
Expanding transparency across financial processes with P2P
As the AP Automation project succeeded, FLT sought a solution for Global Payments P2P, leading them to Basware’s P2P solution, offering visibility and control over all spending categories for their expanding global needs.
At the onset of Covid, FLT needed complete control over cash and spending as market conditions rapidly changed. As a decentralized practice, gaining transparency for spend reduction by centralizing the approvals process was challenging. The decision to implement the Basware P2P solution quickly provided a more centralized and scalable answer.
The Global Payments team realized the need for the Planned Accelerated Optimization program, gaining access to dedicated resources to fast-track and maximize the solution’s potential as they rolled it out globally.
“Since the optimisation, we’ve personalised our P2P processesto suit our business needs & made several enhancements to optimise efficiency. With the support of our dedicated consultant, we are maximising the system’s capabilities and streamlining our global rollout process.” Stephanie Hogno, Global Treasury - Payment Solutions for FLT
Establishing a close collaborative partnership between FLT and Basware has been crucial in developing a solution tailored to meet their unique business needs. With an effective Accounts Payable solution implemented and a centralized P2P system enhancing financial control, part of FLT’s ‘s Financial department has evolved into a more strategic and adaptable entity, capable of navigating organizational and market changes.