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Case
Studies :
EIPP : Kennametal Inc. |
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Invoice Harbor for Payables
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Kennametal Inc. |
| Client's Needs |
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The North American market leader in metalcutting tools and second worldwide, Kennametal has almost $2 billion in annual sales. This manufacturing company currently processes approximately 200,000 invoices per month. The majority of the invoices are related to Purchase Orders, and are mostly received via paper from over 4000 vendors. As a result, significant time was being spent on data entry, data validation, and exception handling. Finally, this manufacturer wanted a simpler method to convert vendors to electronic payments. The goals of the EIPP project were to automate invoice capture, increase the matching percentage within SAP, and facilitate electronic payments. |
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| Solution: |
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Harbor Payments implemented its EIPP solution, Invoice Harbor for Payables. This web-based invoice and payment processing platform provided the ability for vendors to submit invoices via file delivery, web entry and image/fax. By partnering with Kennametal’s disbursement bank, electronic payments were enabled across the vendor base. |
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| Resulting Benefits: |
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The solution automated invoice receipt and entry. The validation of key data to ensure vendor compliance and clean data enabled a high degree of 3-way matching within SAP. In total, the EIPP solution generated a total cost reduction in direct costs for invoice processing of nearly 30%. More control over A/P processes and payment timing allows for a rationalization of trade terms and discount utilization. Further, electronic payment enablement results in a lower overall cost of payment. |
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