Industry:
Business Services
Tyco Fire & Integrated Solutions
Immediate savings made through improved Accounts Payable performance
Regions:
Global
Solutions:
AP Automation
- Home
- en
- why basware
- customers
- tyco fire and integrated solutions
Establishing a shared service center (SCC) operation with an Accounts Payable (AP) automation solution delivered Tyco Fire & Integrated Solutions significant cost reductions while increasing AP productivity.
When Tyco Fire & Integrated Solutions set out to modernize their invoice handling, they faced a significant task.
Processing more than 250,000 invoices, across 20 regional sites in the UK, using decentralized ERP systems was creating significant visibility and control challenges. It was clear that unifying activity in its new Shared Services Center (SSC) in Manchester would not only address these issues, but would provide a significant opportunity to reduce costs and increase productivity.
The company had established a national best practices program, but without proper visibility, it was impossible to see how well these practices were being adhered to. Stringent new regulations also required them to improve their compliance capability, while improving information availability and control.
75%
faster e-invoicing
£400k
savings
4x
efficiency improvement
Tyco's Challenges
The challenge therefore was to increase visibility, cut costs and boost staff productivity by centralizing their AP function to gain true automation potential and global compliance capabilities.
The use of multiple systems and a lack of a single point of control and reporting were at the heart of the business challenges. As such, it was imperative the eventual solution was capable of integrating seamlessly into their disparate ERP environment.
We chose Basware because of its ability to adapt to the existing processes and ERP solutions in each of our UK locations and its proven cost saving ability.Steve Katona, AP Manager, Tyco Fire & Integrated Solutions
Basware's AP Automation provides the Solution for Tyco
The Basware AP Automation solution that has been deployed in Tyco's Shared Service Center automates the entire invoice-handling process. The business rule based, automated matching of invoices and purchase orders minimizes the need for time consuming and error-prone manual invoice handling tasks, giving full visibility of invoices and allowing accounts payable staff to focus on more valuegenerating tasks.
Cost cutting is a huge priority for any business. When you see numbers like that, it really highlights the efficiencies and cost savings that automating your processing can bring.
Steve Katona, UK Accounts Payable Manager at Tyco Fire & Integrated Solutions
Results
As a result, AP performance has become more efficient. Improved visibility of invoices has helped reduce the number of inquiries received by the AP team and has significantly streamlined regulatory compliance and audit processes.
Productivity is also on the rise. “Managing the invoice process is now much more efficient for the Shared Services Accounts Payable team. We’re now processing 40,000 invoices for each accounts payable employee. Before we implemented the system we were only processing about 10,000,” said Steve. “Basware has helped us to achieve a 75% reduction in invoice cycle time, down from four weeks to five days, so we are processing the 250,000 invoices we handle per annum much more efficiently."
Adherence to best practices has also improved. Thanks to greater visibility, non-authorized spend is measurably lower. And the incidence of POs not being raised or being raised retrospectively has been greatly reduced.
Most impressive, however, are the cost savings. In the first year alone Tyco have realized a £400,000 direct cost saving, through centralization and greater efficiency — all without an increase in staffing levels.
In all, the Basware solution has integrated seamlessly into the Tyco company-wide strategic plan to automate workflow and centralize processes to achieve productivity gains and cost savings across the enterprise.
But it doesn’t end there. As part of a larger global organization, Tyco have deployed a solution that is flexible enough to accommodate any future changes to processes across international operations.
Basware’s AP automation and invoicing platform has helped Tyco achieve a new level of efficiency – in a matter of months – while reducing errors and risks. Now it all just happens™.