“To-Increase Invoice Workflow fully meets our expectations. We can now close monthly accounts faster, as Invoice Workflow offers greater oversight and transparency for both the approvers and the accounting department. We have achieved greater efficiency throughout the organization and have freed up resources.”
With headquarters in Søborg, Denmark, factories in Assens, Hostebro, and Nykøbing, growing operations in Latin America and other regions, and sales to more than 100 countries around the globe, Scandinavian Tobacco Group is not only the world’s largest supplier of cigars and pipe tobacco, but also a leading provider of fine-cut tobacco that goes into cigarettes. Many of the world’s leading brands of cigars and tobacco are part of the enterprise’s portfolio.
From paper-based processing to single-click invoice approvals
At Scandinavian Tobacco Group’s Assens location, close to 14,000 invoices arrived in the mail every year. Workers would sort these manually and distribute them into the pigeon-hole mail slots belonging to the approvers. A long time could pass between the receipt of an invoice and its registration and approval. Often, payments ran late. The accounting department had an accurate overview of actual cash requirements only after the month’s last registration. Business managers looked for a more efficient, software-based solution for managing and approving invoices.
To-Increase Invoice Workflow, which integrates with Microsoft Dynamics AX, became the company’s choice. Scandinavian Tobacco Group implemented the solution together with the ERP system. From then on, the operation switched from receiving invoice mailings to electronic submissions. A small remaining amount of paper invoices is scanned into the system as soon as they come in. Once invoices are registered and the accounting team has verified them, approvers receive an automated message asking for their approval. They can access the invoice approval functionality through Microsoft Dynamics AX directly or through a web service, available round the clock and from any device with a browser. Approvers add any pertinent account information and approve invoices by means of a single click.
Better visibility and financial control
At Scandinavian Tobacco Group, Invoice Workflow has made several operational improvements and efficiencies possible. Individual approvers and the finance team have excellent visibility of invoice approvals. With a better insight into the operation’s cash flow and accurate, timely financial statements every month, budgeting and forecasting have become more reliable and transparent. Automated, fast approval workflows result in on-time payments, with late invoice processing a rare exception.
Happier employees and suppliers
Following the implementation of Invoice Workflow, the accounting team reduced overtime to a minimum, and it became easier for finance managers to take time off. For Scandinavian Tobacco Group’s vendors, electronic invoice submission saves time and expenses, and they are pleased to receive their payments on time. With Invoice Workflow, Scandinavian Tobacco Group also can demonstrate that it is a modern, agile organization that uses technology to become a more effective business.
Malene Terp, Finance Manager at the Assens location of Scandinavian Tobacco Group, says, “To-Increase Invoice Workflow fully meets our expectations. We can now close monthly accounts faster, as Invoice Workflow offers greater oversight and transparency for both the approvers and the accounting department. We have achieved greater efficiency throughout the organization and have freed up resources.”