One of the branches of L'oreal has a geographically distributed structure: a high-tech factory, academies for training beauty professionals, and a wide retail network.
Daily work with suppliers and distributors is a significant part of company operations. Document management with counterparties is a complex integrated process that includes internal and external interaction. Its effectiveness directly affects the success of the company in the market.
Documents were managed in a paper form. Information on the accounting entry was entered into the accounting system manually.
There were a lot of errors, documents were lost, work slowed down. The company management decided to implement the Directum system to optimize the interaction with counterparties and simplify the processing of paper and electronic document flows.
The goal was to automate the most time-consuming processes:
Also, it was required to minimize manual operations, organize work with documents archive with the opportunity to manage access rights, and organize work via mobile phone.
It was time-consuming for the employees of L'Oréal and contreparties to prepare a paper request for creating or changing information about a supplier in the accounting system. Communications lasted from a few days to weeks. Thanks to the Directum system, the time for processing a request was reduced to 2.5 minutes and the process has been fully translated into electronic form.
Data does not need to be duplicated manually: information about new suppliers is transferred from Directum to the accounting system automatically.
Contracts are created in the Directum system from up-to-date templates. Contracts are approved in accordance with the company’s regulations. A list of approvers is set up for each category of the contract Currency control is automated. After the contract is approved with a supplier within the Directum system, it automatically becomes available in SAP.
Employees can easily find information about the history of contractual relations with a counterparty. Documents are stored in a convenient electronic archive. Now it is possible to work with contracts completely in electronic form: documents are signed by a qualified electronic signature and sent to the supplier through exchange systems.
A supplier sends an invoice through the electronic documents exchange service. A task for a responsible employee is created automatically. Then the document is sent to the financial controller, accountant, signatory, and again to the accountant for posting it to SAP.
Fifteen major suppliers took part in the pilot project; it is planned to scale the solution and transfer the rest of the suppliers to an electronic exchange.
All incoming paper invoices are scanned. After intelligent services process documents, the system automatically fills in the requisites of these documents. Then they are sent for approval and validation. The data is transferred to the SAP system. Re-scanning versions are automatically replaced by signed versions and transferred to storage in the Directum financial archive.
L’Oréal managed to build an end-to-end process with two flows of invoices - paper and electronic. Interaction with contractors is optimized. The company partially rejected the papers and moved to a new level of culture of working with documents and suppliers. The use of intelligent tools helped to accelerate the work with the invoices.
documents per year
sets of documents per day are processed with the help of artificial intelligence
users work in the system
it takes 2.5
minutes to prepare a request to create or change a supplier data
major suppliers exchange invoices electronically
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