Industry:
Mining
Yancoal implemented Basware AP to unify acquired companies under one accounts payable system enabling cost savings, efficiencies and transparency across its business.
Since 2004, Yancoal has been a key player in coal production for export, expanding is reach through strategic acquisitions. With ownership of 11 coal mines across Australia, the company faced challenges in unifying its Accounts Payable (AP) processes due to multiple software instances resulting from growth and acquisitions. The Finance department grappled with the complexities, leading to a crucial need for transformation from a predominantly manual system. This situation required a robust solution to standardize and streamline AP processes across the entire organization.
Optimizing the process
80%
touchless invoice processing achieved
240,000
invoices processed annually
100%
control over costs maintained
Yancoals's Challenges
Transitioning from manual and decentralized process
Before Basware, manual methods and decentralized finance departments created inefficiencies and room for errors. Despite using SAP, the basic level of operation involved physically handling paper invoices, leading to delays and a lack of centralized control. In 2010, as competitors explored outsourcing, Yancoal opted to leverage in-house resources, seeking to match outsourcing rates while maintaining control. This decision was driven by the need to preserve institutional knowledge and maintain a hands-on approach to managing critical financial processes.
“Many big mines outsourced their invoicing processes, but not many had any real success with that model.” Michiel Kotze, Manager, Shared Services, Yancoal Australia
After exploring options, Basware was selected for its supplier-friendly interface and adaptability. The implementation aimed for an 80% touchless rate, addressing Yancoal's specific needs. This strategic move not only aligned with the company’s operational goals but also facilitated better supplier relationships, ensuring smooth and timely transactions across the board.
Now I know at any one time what is happening with each invoice. I’ve got 100% coverage of all costs and transactions.
Michiel Kotze, Manager, Shared Services, Yancoal Australia
Results
Delivering long-term value
Basware’s implementation provided Yancoal with a comprehensive view of their entire invoice process, enabling better cash flow management and identifying rogue expenses and bottlenecks. Detailed spend plans increased efficiency and improved understanding of upcoming payments, contract terms, and conditions.
As Michiel explained, “Now I know at any one time what is happening with each invoice. I’ve got 100% coverage of all costs and transactions.”
Despite disruptions from Covid, causing many finance departments to reconsider their manual invoice processes, Yancoal’s paperless process ensured uninterrupted operations.
Yancoal’s AP team, now motivated and efficient, focuses on value-added tasks, moving beyond repetitive, manual invoice processing. Despite a three full-time employee (FTE) reduction in the team, the department expanded responsibilities, offering accurate reporting and becoming an integral part of the business. This transition has empowered the team to take on more strategic roles, contributing to the company’s broader financial goals.
Through automating repetitive invoice tasks, our accounts payable team now enjoys a more engaging and fulfilling role, focusing on issue resolution and increased human interaction. Michiel Kotze, Manager, Shared Services, Yancoal Australia
Operating as a shared service department allows scalability without additional headcount investment, showcasing Yancoal's commitment to efficiency and innovation in AP processes. This model also sets the stage for future growth, ensuring that the AP department can seamlessly handle increased volumes as Yancoal continues to expand its operations.