When it turned to OpenText to address a specific requirement to digitize and reduce the cost of its existing manual vendor invoice management process, it gained more than originally anticipated.
MYDIN receives around 2,000 invoices per day and well over half a million per year. Previously, these invoices were received at the stores and then couriered to their headquarters in Subang Jaya for processing. These invoices were sorted manually by payment dates and terms, then processed before being filed and stored. When there were queries about certain invoices, employees had to refer to this manual filing system. All of this was completed by approximately 125 people processing invoices, entering data and managing the paperwork pertaining to Accounts Payable.
“With a reliance on human input and so many duplicate touchpoints, we understandably experienced a lot of errors despite the skilled and attentive nature of our finance professionals. Not to mention how mundane this work was for our skilled professionals and costly for our business,” explained Malik Murad Ali, IT director at MYDIN.
With MYDIN’s plans to keep growing, this problem was only going to increase. They would already soon run out of office space with paper everywhere, especially when its head of finance estimated they would need seven new people to manage the invoices for each new hypermarket opened.
Malik was tasked with finding a solution that would support the business to grow at scale. He reviewed Accounts Payable automation solutions available in the market and as an SAP® customer, sought to find a truly integrated solution that would transform the process from end-to-end. He identified OpenText, a long-standing SAP partner, which offered a combined and unique solution, OpenText™ Vendor Invoice Management (VIM) for SAP® Solutions and OpenText™ Invoice Capture Center (ICC). For the implementation of the OpenText solutions, MYDIN leveraged OpenText implementation partner, Delaware Consulting. The project was completed in eleven months and led to a complete end-to-end digital approach to invoice processing.
OpenText VIM enables MYDIN to process vendor invoices quickly, accurately and efficiently, and enhances worker productivity, cash flow and vendor relations. The solution optimizes and simplifies the process of receiving, managing, routing and monitoring invoices and related documentation.
Many of MYDIN’s suppliers do not transact electronically and it is this factor that drove the implementation of the ICC solution to automate manual invoice capture. Invoices received in paper form or as a PDF attached to an email, benefit from the ICC solution where the deep integration into SAP fully automates the data extraction and eliminates manual data entry.