The document outlines the digital transformation of the purchasing process at Adactus Housing Association, highlighting the introduction of a duty for large businesses to report on payment practices following the Small Business, Enterprise and Employment Act 2015. It discusses the automation and efficiency improvements in invoice processing, including the transition from a manual to a digital system that supports quick approvals and enhanced tracking. The implementation of a central purchase order system aims to meet auditor demands and improve operational effectiveness by streamlining the approval and invoicing process.

1. Real Life Benchmarks:
The Digital Transformation of
the Purchasing Process

2. • Efficiency – excess effort
• Turnaround time (now a duty to report for large business)
• Enable focus on critical thinking and high value issues – CONTROL!
Time is Money:

3. • The Small Business, Enterprise and Employment Act
2015 created a duty on large businesses to report on
their payment practices.
• Larger Businesses only
• Start Measuring from April
• Report every 6 months
• Performance: % invoices (Count) paid in 30-60 - Over 60
• Contract terms & more…
New - Duty to Report:

4. InvoiceProcess
Invoice Capture &
Data Extraction
Approval &
“Coding” Workflow
Invoice Upload &
Posting/Matching
Search, View &
Reporting
Approval
Task
Invu
Workflow
Starts
End of Invoice Process
05/10/10Invoice Process Stuart Evans
Adactus Housing
FinanceDept
POPProcess
Paper Invoice or Email
subsequently printed
Match &Post
(+ QLF task centre
match reminder)
Invoice Copy +
Metadata in
Invu DMS
Creates
Invoice Type
SourceDept
Batch scan
Invoices
Purchasing Group
Task to Assign an
Approver for the
Invoice
Extract & Store
Data
Image files created
Ad Hoc
Payment
Processing
CSV File exchange
Batch Upload
(register) Invoices
POPRegistered Reference
Account Number
Account Name
Invoice Date
Amount (Net & Tax)
PO number or
RO number
Maintenance
Invoice
Templates
Invoices Available in QLF
Approval
Task
For Maintenance this step
can be moved out of
finance when Adactus is
ready
For POP – user has
access to both Invoice and
PO as documents
QLF FunctionInvu Function Invu WorkflowLegend:
User Task
Routing TBD by workshop
but based on PO data –
through to responsible
Invu group
It is envisaged that
batches of (say) 50 paper
invoices will be scanned Create Signed
Invoice Record for
QLF read
Signed Invoice
Table
Inserts
Reads
Invoice Automation:

5. Requisition to Order Automation:
Budget View
Coded Lines Easy &
Mobile
Approvals

6. Trusting the Machine…a process in itself:

7. • 350 Staff, 30,000+ Invoices per annum
• Had no central PO system (just dept. spreadsheets)
• Had already purchased ERP POP module
• More recently had already successfully implemented Invoice Processing
• Still wanted a purchase control solution because:
• Auditor demand
• Operational “fitness” – strategic aim
• Demonstrate VFM – an HA community directive
Adactus Housing Association:

8. Requisition to Order:
Request Approve
Raise /
Place
(Receipt)
Auto-place:
Emailed/Upload PDF
ensures the Order
presented to Supplier
matches the system
Via Phone/Tablet:
Approvals can be done
quicker and easier with
mobile interfaces

9. Purchase Process Metrics:
Days from Request to Approval
Average 0.5 Day for
Approval
Average 0.5 Day to then
raise Order
Most Request to Raise
within 4 hours

10. Purchase Process Metrics:
Post
Email
(Auto)
Phone
Fax
Online
Order Placed
via… 1 Line
Order
2 Lines
3
Majority of Orders are 1 line item

11. Invoice to Pay:
Slower Receive:
Manual save from
emails (PDF) or
Scanned onto
Photocopiers
from Departments
Fast Receive:
Auto-capture from
invoices@mycompany.com
AP department scanning
Invoice
Receive
Capture
Code or
Match,
Approve
Query
Post Pay
(Code)
Level 1
Approve
Level 2
Approve
Header
Narrative
And VAT splits
by AP staff
Straight
through
processing

12. Invoice Process Metrics:
Same
Day
1 Day
2
3
4
Mean Days from Receipt of Invoice to Posting = 5
Mode Days from Receipt of Invoice to Posting = 1
Same
Day
1 Day
23
4
Time to Approval
(where needed)
24%
Touchless
Invoices
2/3
Not received
Before Invoiced

13. Invoice Process Metrics:
24% Touchless: Straight through processing
16% Light Touch: Matched but required (only) Receiving
Simple Variation
Partial Invoices
Complex Invoices
Consolidated Invoices
60%
40%
Heavy Touch: Approval & balancing required

14. Keep Orders simple
• Increased likelihood of auto-matching with Invoice
• Better traceability, more 1-1 with Invoices
• Less “interlock” with other staff/transactions
Automate the receiving of Invoices
• Request emailed invoices not paper,
• Request Invoice per Order, not consolidated (‘cause that’s for humans)
• Use a dedicated email address; invoices@mycompany.com => Audit
Making room for the real queries (1):

15. Simple process flow
• Keep the process as linear as possible
• Simplify the process when you automate
– don’t replicate a complex process
• Trust the data & the machine
– reduce approval steps
Making room for the real queries (2):

16. Thank you for listening
www.invu.net