Selecta got more control and increased efficiency
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With 37 offices located in various parts of Sweden, and 8 in other Scandinavian and Baltic countries, invoices had to travel far to be authorized for payment. Some were never checked at all.
- Before Selecta implemented Palette systems, 40,000 invoices travelled back and forth by mail across Scandinavia and the Baltic region every year. Copies for checking were sent between offices, sometimes several, for authorization. Lots of paperwork was involved in getting all the expenses into the right months. And a whole lot of interest on overdue payments when invoices were left lying too long for signing, or even disappeared in transit. Today, Selecta’s invoice processing is quite different.
Facts about Selecta:
Swiss company Selecta supplies coffee machines and vending machines for private and public spaces.
The company has 5,000 employees in Scandinavia and the Baltic countries.
Amount of invoices: Selecta receive about 40 000 invoices annually from suppliers all over Europe.
ERP: Movex
Overview and control
“No invoices are left lying today, because we no longer have to be in the office to check and sign them. Today, we can authorize invoices anytime, and it’s become part of the daily routine. You even get reminders by e-mail. I think most of us find it fun that it’s so easy,” says Per Ekstedt, CFO at Selecta.
When he describes the difference between then and now, it’s the greater visibility he’s most happy with – being able to oversee the invoice flow.
“From having masses of copies in binders behind my back, now everything’s right there in front of me in the system on my computer screen. And it’s easy to follow the invoice’s path to authorization and payment. The ease of overseeing the invoice’s path has
visibly reduced the number of overdue interest invoices for Selecta. Nothing falls between two stools any longer. If someone is on leave, invoices are automatically redirected as a fixed routine in the system. And those who check invoices feel a greater sense of responsibility.
“We’ve become more aware, which is actually visible in our financial result. Each invoice is thoroughly checked and the person responsible for checking feels greater responsibility for the costs,” explains Per Ekstedt.
He also talks about scanning in supplier contracts and customer contracts in Baltzar Contract. Something that gives an even better overview and more control.
Cost savings with Palette
Thanks to reduced costs for postage, copying and interest on overdue payments, the pay-off time for Selecta’s investment is estimated at
only one year. And in addition, Selecta is saving time. When something needs to be checked down the track, the information is not on paper in a binder at some remote office – it’s all right there in the system and can be found in seconds.
Per Ekstedt has prior experience of other invoice processing systems and of Palette. That PaletteArena was chosen by Selecta was due to its simplicity and accessibility. No IT engineers need to come to the office to install it. Everything can be accessed on the Web with a password.
And no advanced, time-consuming training is needed to learn the system. New employees get a brief introduction from a colleague and then they are off and away . The need for long training courses in complex systems only creates resistance among employees and their bosses, he explains.