In today's fast-paced business world, companies are constantly seeking innovative solutions to optimize their processes and drive cost savings. INNIO, a global leader in renewable gas engines, partnered with Basware to implement an efficient Accounts Payable (AP) system after undergoing a private equity buyout. By leveraging Basware's AP automation and centralization solutions, INNIO successfully achieved significant efficiency gains and unlocked millions in annual savings. Let's delve into the details of this transformative journey.
Challenges Faced by INNIO
Following its acquisition from General Electric by a private equity investor in 2018, INNIO required a standalone AP system to support its global operations. The tight schedule dictated by the carve-out from GE necessitated a swift implementation process. With a considerable volume of PDF invoices, INNIO sought a flexible solution equipped with robust recognition software and mailroom services. Furthermore, INNIO aimed to centralize its AP services and integrate the solution seamlessly with its Oracle ERP, aligning with its best-of-breed approach.
Selecting Basware for Success
After careful evaluation of six vendors, INNIO chose Basware due to its open architecture, advanced invoice recognition capabilities, and global mailroom services. Basware's dedicated project team collaborated closely with INNIO to ensure smooth implementation across various legal entities. The initial "out-the-box" solution was later tailored to align precisely with INNIO's unique requirements, facilitating increased automation levels through revised internal processes. Additionally, a supplier enablement campaign was launched to educate and onboard suppliers to the Basware Supplier portal.
Driving Efficiency and Achieving Results
Basware addressed INNIO's immediate needs during the separation from GE and continued to enhance efficiency across finance processes. The mailroom service seamlessly managed incoming invoices, eliminating the need for discussions or intervention. The results speak for themselves: INNIO achieved a spend-under-control rate of 95%, an e-invoicing rate of 85%, and automatic matching at 70%. These impressive levels of automation allowed INNIO to centralize its AP functions, consolidating from 10 locations to a single team based in Budapest.
The implementation of Basware resulted in a remarkable reduction in resource requirements, ranging from 30% to 50% within the past 12 months. The AP team can now focus on value-added activities such as leveraging early payment discounts, creating payment plans, and enhancing overall AP efficiency. Thanks to the seamless integration with Oracle ERP, invoice data is efficiently passed back, enabling same-day processing and preparation for payment.
INNIO's commitment to Basware has yielded substantial benefits, unlocking millions of Euros in annual savings through early payment discounts, a significant achievement for a company of its size.
Conclusion
INNIO's partnership with Basware has been instrumental in unlocking value through automation and centralization of AP services. By leveraging Basware's tailored solutions and expertise, INNIO successfully navigated the challenges of a private equity buyout and achieved impressive results. With increased efficiency, centralized operations, and significant cost savings, INNIO has solidified its position as a leader in the energy and utilities industry.
To learn more about INNIO's transformative journey with Basware, download the case study.
