Simplifying invoice management helps Scandinavian Tobacco Group control its finances better and improve supplier relationships

The world’s largest provider of pipe tobacco and cigars, Scandinavian Tobacco Group, generated significant savings and efficiencies after implementing To-Increase Invoice Workflow in integration with Microsoft Dynamics AX at its factory in Assens, Denmark. From timely payments to greater transparency in finance management, to better vendor relationships, the solution assists Scandinavian Tobacco Group in operating with greater agility.

Key benefits

  • Timely, accurate invoice registrations and approvals
  • Anywhere, anytime ability for approvers to access invoice approval functions
  • Full transparency of invoice processing actions by finance team and approvers
  • Better insight into cash flow and more accurate financial month-end statements
  • More meaningful budgeting and forecasting
  • Savings generated by reduced invoice management workloads and cuts in overtime
  • Better relationships with suppliers resulting from timely payments and process efficiencies

Scandinavian Tobacco Group

  • Number of employees: 8,400
  • Website: www.st-group.com/
  • Country or region: Headquartered in Denmark, active globally
  • Industry: Manufacturing and distribution – Tobacco products

Software and Services

  • To-Increase Invoice Workflow
  • Microsoft Dynamics AX 2009

Customer Profile

Scandinavian Tobacco Group is the world’s largest manufacturer of cigars and pipe tobacco.

Business Situation

Invoice approvals and processing at the company’s factory in Assens, Denmark, were paper-based and manual, resulting in costly delays and inefficiencies.

Solution

Scandinavian Tobacco Group’s Assens operation deployed Microsoft Dynamics AX 2009 as the ERP system and integrated it with To-Increase Invoice Workflow.

Download the Scandinavian Tobacco Group case study

downloads_list_iconThe To-Increase solutions helps Scandinavian Tobacco Group resolve issues and reach their goals

“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.”

Malene Terp, Finance Manager, Assens factory, Scandinavian Tobacco Group

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.”

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