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ConAgra Foods Streamlines AP Processing Case Study

Posted on 1/27/2012



ConAgra Foods Streamlines AP Processing to a Shared Services Approach with Kofax MarkView for Accounts Payable Kofax AP Automation Suite

Enables Lean Self-Service Accounts Payable Supplier Portal

The Situation

Beginning with the adoption of SAP as its enterprise resource planning (ERP) tool, the company selected Kofax MarkView for Accounts Payable for its integration with SAP and its proven track record of best practice implementations for end-to-end processes. Kofax’s extensive finance automation experience, robust out-of-the-box functionality, and validation by third party experts such as the Gartner Group and the Hackett Group were also key factors in the adoption of MarkView, which went live at ConAgra Foods in February 2008.

A multi-year, multi-faceted, phased approach had as a key element the establishment of a business shared services center in Omaha, Nebraska for transactional accounting, including accounts payable, accounting, time and expense, inventory, payroll, and accounts receivable. At the outset, ConAgra Foods processed 250,000 invoices yearly and expected the volume to grow to more than a million annually.

The Challenge

At the beginning of this multi-year process, ConAgra Foods operations were distributed and managed on a plant-by-plant or function-by-function basis, which involved multiple AP systems and processes, as well as multiple sets of controls, audit processes, reporting processes, and storage systems.

Invoices were received at each plant location in paper form and managed with plant-specific processes and technologies. The invoices were stored using P8 after the fact scan and store, or in hardcopy form. It was difficult to gather enterprise metrics for analytical purposes across these distributed systems, and there was a lack of accuracy in tracking the number of invoices, the cost of each invoice, discounts for early payment, and the impact on key suppliers. In addition, there was inadequate visibility into the invoice approval process as well as limited procurement efficiency and cumbersome manual controls in place.

The adoption of Kofax MarkView dramatically simplified the invoice process for ConAgra Foods by eliminating the receipt of invoices at multiple locations and setting up immediate capture of faxed, email and EDI rendered invoices at a central location. Invoices are now immediately captured into SAP and a streamlined workflow handles exception management and coding, approval and payment, which ensures greater efficiency for AP teams. This standardized process provides visibility throughout, eliminates data duplication, speeds the payment process, and delivers increased financial controls.

When ConAgra Foods began consolidating its multiple AP systems into a single ERP system in 2008, "The number of AP helpdesk requests from suppliers looking to determine the status of their payments went through the roof," said Pam Russavage, the Manager Finance of Accounts Payable and Document Management. "We didn’t have a good database or a good case tracking system to be able to manage those requests for information. We wanted to go to something that was more supplier based and self service."

The Solution

Russavage’s team performed a review of leading providers of self service supplier portals, including the SAP Supplier Network tool. She said, "We decided that there was too much configuration required there. Because Kofax SupplierExpress was part of the Kofax MarkView suite, and we had had such good results with our relationship with Kofax, it really was number one on our list. It was simple to use."

ConAgra Foods worked with Kofax to implement SupplierExpress with the MarkView workflows. "Kofax has created two custom workflows for our team. One for non-SAP Marketing invoices, and one for our Freight Pay invoices. These custom work flows have assisted us as we convert the marketing department and freight payables to our standard ERP process. The invoices come into the system either via email, fax or mail, are scanned into the system, then go into our standard workflow queue," explained Russavage. "Some are routed for approval, while some are applied against a purchase order. It’s been a huge benefit to us to have the invoice detail within the system. It’s really improved our processing."

Going live with SupplierExpress in June of 2010, ConAgra Foods AP team began with a pilot project involving three suppliers. Based on the swift success of the pilot, Russavage’s team sent out invitations to their top suppliers who placed the most calls to the AP helpdesk. Russavage said, "We had identified 60 of our many suppliers who seemed to have the most activity with the helpdesk and who were more often seeking payment status." Russavage and her AP team coordinated with their procurement organization to find out which suppliers were asking questions that could be answered through SupplierExpress, then began approaching them to join the system. "Now it’s almost second nature," she said. "As we get more suppliers who are asking us for invoice status more than once a week, we invite them to SupplierExpress. We recently went moved our marketing department into the SAP accounts payable process, so we expect to see a lot of those suppliers onboarded to SupplierExpress during the next six months."

The Results

ConAgra Foods AP group has eliminated 40 percent of its supplier calls through the implementation of Kofax SupplierExpress, which improved AP efficiencies. Russavage explained, "Most of the suppliers have become proficient in the use of the tool after one or two sessions in the system. Because SupplierExpress is intuitive and flexible, they can get the information that they’re looking for quickly. We’ve eliminated 40 percent of the calls we get, including a large number of the repetitive ones. That was the goal."

"We have rolled out all of our consumer plants, our corporate SG & A (Sales, General and Administrative), and now our mills locations without adding any AP headcount," Russavage noted. "We can scale our processes significantly, but keep our costs flat. Self-service is a leaner process for us. It eliminates multiple contacts for the same issue and provides a level of supplier satisfaction. The suppliers get the information they’re looking for a whole lot faster."

As the volume of invoices processed has increased and helpdesk calls have decreased, ConAgra Foods was able to reduce staff and save up to 25 percent of its traditional AP labor costs.

ConAgra Foods has also gleaned a great deal of value from its ability to get visibility of invoices within the enterprise, from the AP team to purchasing to receiving teams at various plants in order to perform discrepancy resolution.

When measuring return on investment, ConAgra Foods looks at the reduction in front-end workflow, the reduction in helpdesk calls, and the number of invoices paid in accordance with terms. "We wouldn’t be anywhere close to where we are without the front-end capabilities that MarkView and SupplierExpress have given us," Russavage said. "When we started this process three years ago, 55 percent of the invoices were past due when entered. Today, 93 percent of invoices are paid in accordance with terms. That’s a huge swing."

Going forward, ConAgra Foods believes that its Kofax solutions can help in two major ways: by using use SupplierExpress to allow suppliers to provide updated remittance information electronically and leveraging the information captured in the queues and using MarkView’s analytical tools to complete root-cause analysis.

Russavage said:"Reporting at a buyer, plant, platform level, combined with identification of the issue will assist us in resolving problems that adversely affect our first pass match rate. Resolution of those problems will assist us to achieve our ultimate goal of becoming a world-class organization. If we can report at a buyer level where we’re having a problem and roll those buyers up to a plant or roll problem invoices together by supplier and potentially by platform, buyer, material, etc., maybe we can identify and resolve some of the issues that will help us achieve our ultimate goal of enabling a world-class, first-pass match rate."

To learn how more about Kofax solutions or to schedule a consultation, please contact DCA at 908-735-0393 or online.

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capture kofax ktm kofax transformation modules automation compliance security content management document management document capture document imaging conagra foods

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Does Automated Information Matter?

Posted on 10/18/2011

Shockingly, 80% of content is unstructured and 90% of unstructured content is unmanaged. All content—regardless of format—is subject to regulation. Efficient data classification and extraction is critical to the success of all organizations.

Organizations can transform their business documents into structured digital information with Kofax Transformation Modules (KTM), a Kofax Capture software module. Through advanced recognition technology, KTM automates document and form classification, page separation, and data extraction and validation capabilities to drive data-critical processes forward. KTM software processes hand-printed and handwritten forms, invoices, checks, correspondence and any other documents on a single integrated solution.

Users leverage our most comprehensive and versatile solution to transform paper into intelligent digital content. ROI is guaranteed and is typically achieved within 12 months.

Key Benefits

• Improve information accuracy, speed & quality
• Reduce operating costs
• Enhance customer service
• Achieve stronger compliance adherence
• Strengthen data security & management
• Streamline business processes

To learn how more about Kofax Transformation Modules powerful classification and extraction technology or to schedule a consultation, please contact us at 908-735-0393 X110 or info@dcainfo.com.

Tags:
capture kofax ktm kofax transformation modules automation compliance security content management document management document capture document imaging

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Scan to Archive versus Capture to Process

Posted on 2/8/2011

There are several components to consider when cost justifying a conversion project. Beyond traditional scanning to archive for disaster recovery planning, the greatest benefit of scanning is realized when capture technology is utilized to improve core business processes. Still, AIIM's latest research reveals that only 15% of users scan to drive a process. The vast majority continue to scan only to archive their information.

Today’s capture technologies provide a complete solution for scanning documents at the front end of a process. Critical data is extracted from documents, and transformed into useful information to drive the process. Information may also be routed to multiple departments and functions in various electronic formats. 

Capturing information at the start of a business process allows organizations to manage critical information while reducing manual labor costs such as data entry, sorting, filing, storage and shipping. Capture technology also helps improve efficiencies of core business functions and enhances data quality throughout the organization.

Accounts Payable is a prime example of a process that can generate a quick ROI from imaging. For more on this topic, please read our blog: New Aberdeen Research Shows AP Automation Pays Off .

DCA can help your organization determine the best solution for your business. With over 20 years of experience, DCA has earned a reputation as an industry leader in developing end-to-end content management solutions across all industries.  For more information, please contact DCA at (908) 735-0393 or contact us online.

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business process automation document capture archive workflow accounts payable

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Streamline Medical Claims Processing with Capture Technology

Posted on 1/11/2011

The Healthcare Billing and Management Association reports that the frequency of overpayments, rejections, and denials on medical claims often reaches 50%, primarily due to manual data entry errors and the high complexity of claims. The main challenge of claims form processing is manual data entry, which creates a bottleneck at the front end of the process, delaying payments and increasing per-claim processing costs.  This issue can be addressed by the introduction of a front-end capture system, which minimizes manual keying of data, resulting in improved productivity, data accuracy, customer service, and profits, all while cutting costs.

Due to the high volume of data fields found in medical claims forms, the per-claim processing cost can reach up to four dollars per claim with manual methods.  With robust OCR technology, capture systems are able to achieve high automatic extraction rates to ensure that data is always found correctly on the form and verified for accuracy.  Capturing information from CMS-1500 and UB-04 paper forms allows health insurers to accelerate the processing of claim forms and supporting documents, and the delivery of that information to business systems and content repositories. 

Once information is extracted from a claim form, customized business rules are automatically applied to validate the information according to data format and field content requirements outlined by the American Medical Association (AMA).  Information relating to medical treatments is also verified against AMA Current Procedural Terminology (CPT) code databases, and patient data is verified against the insurer’s existing customer database.  Because the information contained in these database records may frequently change or need to be updated, it can be difficult for operators to know if they are using the most current information. An automated lookup ensures that data is current and accurate.  Verified data is then delivered to a back-end content management system, and workflow can be applied for use in analysis, reporting, and retrieval.

Automated processing of CMS-1500 and UB-04 paper claim forms can significantly reduce operational costs and eliminate 80% of payment errors during data entry. For more information on how to lower labor expenses, improve data accuracy and increase turnaround times in claims processing, please call (908) 735-0393 or contact us online.

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healthcare claims processing document capture

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Dramatically Improve Productivity with Smart Scanning Technology

Posted on 10/5/2010

Manual document scanning and preparation is a time consuming activity. Before you even begin manually feeding the documents into the scanner, a lot of work goes into sorting the documents to make sure they are scanned properly. Even then, it often takes multiple attempts to get the documents looking their best.

Now, there is technology that can do all of the work for you. Thanks to cutting edge Kofax software, you no longer have to worry about uneven images, varied page orientation or poor image quality. Kofax VirtualReScan (VRS) works with document scanners to automatically enhance the quality of scanned images, eliminating the need for manual document preparation or costly rescans of the original documents. Simply remove the staples and paper clips, place the documents in the feeder and press the scan button. It’s that easy.

Kofax technology takes all guesswork out of scanning by:

• Detecting the proper page orientation and automatically correcting it on the fly;
• Cleaning images to ensure the accuracy of optical character recognition (OCR) and handwriting recognition (ICR) software;
• Determining which pages need to be scanned in color versus black and white, eliminating the need to change scanner settings or insert separator sheets;
• Capturing documents with textured backgrounds, such as graph paper, blueprints or security paper, with incredible clarity;
• Correcting images automatically and providing quick tools for further repair without ever touching the original document;
• Distinguishing between blank pages and pages with even the faintest text, reducing the costly storage of blank pages; and
• Storing images in a smaller file size.

 

Don’t waste another hour of your organization’s precious time by manually scanning documents.

Get the high-quality documents you deserve in less time with DCA’s Kofax software. To learn more, call us (908) 735-0393 or contact us online.

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kofax scanning automation document capture document conversion dca services

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