PALO ALTO, Calif. November 29, 2016 – Procurement and finance have traditionally operated in silos. But a shift is starting to take place. In today’s fast-paced global business environment, these two functions must be linked and collaborate in order to keep pace and deliver results. Savvy companies like Avery Dennison have figured this out. And they are leveraging the cloud-based applications and business network of SAP Ariba to drive a connected digital procure-to-pay process that is transforming their operations.
Avery Dennison’s transformation began with a simple objective: eliminate paper-based processes and the inefficiencies, errors, risk, costs and delays associated with them. “We used to send paper invoices and purchase orders back and forth between offices for approval and payment, which was costing us considerable time, money and effort,” recalls Mary Rossoll, Global Director, Indirect Procurement, Global Materials Procurement, Avery Dennison.
To change this, Rossoll and her team created a plan to align sourcing, procurement and accounts payable and set out to find a solution where e-invoicing and the related processes of spend analysis, sourcing, contract management and procure-to-pay could be integrated and managed on one platform.
Enter SAP Ariba. Leveraging the Ariba® Network and the cloud-based applications delivered on it, Avery Dennison has created a connected digital procure-to-pay process that is changing the game. “We have completely transformed our indirect procurement processes,” Rossoll said.
According to Maarten Eddes, Global Business Process and Systems Manager, Avery Dennison, the adoption of e-invoicing was critical to this transformation. “Many companies say they do e-invoicing, when really, they receive PDF invoices through an email,” he says. “We did that for years, but now we are truly e-invoicing through the Ariba Network. Today, invoices are received through the network, matched with the purchase orders and goods receipts, and paid when only when they are matched and then reconciled. It’s a simple process.”
And the process is delivering results. Since implementing SAP Ariba’s solutions, Avery Dennison has:
- Cut its invoicing processing cycle from 23 days to five
- Lowered invoice processing costs
- Saved 400 hours per week for buyers in procurement and AP staff through reduced match exceptions
- Reduced number of supplier inquiries
- Dropped invoice exceptions for indirect purchase orders by 70 percent
- Improved on-time payments performance by 15 percent
The company was recently recognized for its efforts and success by the Institute of Finance & Management (IOFM), which named it P2P Department of the year. “AP & P2P functions are crucial to every business, yet often go under-recognized,” said Brian Cuthbert, Executive Director of IOFM. “Avery Dennison exemplifies what every business dreams to have: teamwork, growth, and cost savings.”
To learn more about SAP Ariba’s procure-to-pay solutions and the transformation they are driving at companies around the world, visit www.ariba.com
About Avery Dennison
Avery Dennison is a global leader in labeling and packaging materials and solutions. The company’s applications and technologies are an integral part of products used in every major market and industry. With operations in more than 50 countries and 25,000 employees worldwide, Avery Dennison serves customers with insights and innovations that help make brands more inspiring and the world more intelligent. Avery Dennison Corporation (NYSE: AVY) is a Fortune 500® company with sales of $6 billion from continuing operations in 2015. We are based in Glendale, California.
About SAP Ariba
SAP Ariba is how companies connect to get business done. On the Ariba Network, buyers and suppliers from more than two million companies and 190 countries discover new opportunities, collaborate on transactions and grow their relationships. Buyers can manage the entire purchasing process, while controlling spending, finding new sources of savings and building a healthy supply chain. And suppliers can connect with profitable customers and efficiently scale existing relationships – simplifying sales cycles and improving cash control along the way. The result is a dynamic, digital marketplace, where more than $1 trillion in commerce gets done every year.
To learn more about SAP Ariba, visit www.ariba.com
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 335,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
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