Ego Pharmaceuticals

CHALLENGES: Manual processes slow down invoice approvals

Ego relied on a paper-based approach to processing supplier invoices, which was inefficient and lacked visibility. Because the invoice approval process depended on paper, it took considerable time and effort to execute payments. The manual process also made it difficult for Ego to track where each invoice was in the approval process, particularly if multiple managers needed to review it. These circumstances left managers and staff with no overview on what was being submitted for payment, leading to payment delays and suppliers frequently requesting updates.

According to My-Duyen Nguyen, Finance Services Manager at Ego Pharmaceuticals, it was quite common for an invoice to sit in an approver’s in-tray for weeks — or sometimes even go missing altogether — up until the invoice was due for payment. Ego also often received the bulk of invoices at the end of the month, which added even more pressure on the accounts payable (AP) team to process for month-end.

The risk of invoices getting lost, budget blowouts, and delayed payments motivated Ego to seek out an invoice processing solution that would not only streamline the AP process — automate and digitise it to make it more transparent — but also easily integrate with its SAP ERP.

OBJECTIVES
- Speed up invoice processing
- Replace paper-based tasks with digital, environmentally friendly processes
- Reduce back and forth emails & delays
- Gain visibility over invoice approval process

RESULTS: Happier employees, happier suppliers

Implementing Esker’s Accounts Payable solution has resulted in quick invoice approvals, faster payments, and greater control throughout the process. With 100% visibility into the status of every invoice, Ego has achieved greater command over spend and cashflow. With Esker’s cloud solution, anyone on the team can view invoices at any time, without having to locate them in filing cabinets. This has accelerated Ego’s end-of-month processing by at least 20%, as the accountants can easily view invoices to verify coding when necessary.

The AP team is no longer stressed or frustrated with the process. With all invoices in one central location, the team can assist with supplier enquiries more efficiently by simply using the invoice number to search for specific invoices. They no longer need to search through dozens of emails to figure out which enquiries have been responded to or processed. As a result, the team can better communicate and collaborate with the suppliers — updating them on the invoice status promptly.

Additionally, it has also reduced the number of common queries the AP team used to receive, as both the AP team and respective approving managers can now see when a specific invoice was received, and how long it has spent at every stage in the cycle.

In addition to removing invoice approval processing bottlenecks and strengthening relationships with suppliers, Esker has also helped to secure audit trails, thereby minimising the risk of non-compliance.

My-Duyen explained that one of the biggest benefits was the dramatic reduction paper waste, saving Ego from printing 70,000 sheets of paper in 2021 alone. The decision to implement the automation solution was also in line with the company’s sustainability strategy to minimise and continually improve processes that may have a negative impact on the environment. The success Ego has had with Esker’s Accounts Payable solution presents an excellent example of positive-sum growth: everybody wins!

HIGHLIGHTS
- Improved efficiency with centralised invoices
- Increased visibility over approval processes
- Reduced internal enquiries to the AP team significantly
- Eliminated risk of lost invoices
- Saved 70,000 printed pages each year
- Accelerated end-of-month processing time by 20%

We estimate that we have saved about 70,000 sheets of paper being printed in just one year purely from switching over to Esker."
My-Duyen Nguyen | Finance Services Manager, Ego Pharmaceuticals