One of India’s largest companies in global power transmission and infrastructure EPC space significantly increases Accounts Payable process efficiency.

KPTL leveraged OpenText Vendor Invoice Management to automate their shared services centre for invoice processing.

Industry : Power Transmission and Infrastructure

Customer : Kalpataru Power Transmission Limited

Partner : Avaali Solutions Pvt. Ltd.

kalpataru-logo

Kalpataru Power Transmission Limited (KPTL) is a part of the Kalpataru Group established in 1969. It is a diversified conglomerate spanning real estate, power generation and transmission, construction of roads, factories, buildings and oil and gas infrastructure and agri-logistics space. Over 2000 strong technical manpower of KPTL deliver a compelling advantage, combining in-house research, engineering, and manufacturing that ensure the highest value proposition to clients. The Company has an annual production capacity of over 180,000 MT of transmission towers at its three state-of-the-art manufacturing facilities in India and an ultra-modern tower testing facility, making it amongst the largest global power transmission EPC Company. KPTL’s wide reach and presence include international geographies like Africa, CIS countries, the Middle East, SAARC, Asia-Pacific and the Americas.

The Accounts Payable process at KPTL was fragmented, manual intensive, error prone and cumbersome. Decentralized processing of invoices at KPTL became a huge challenge as the number of invoices increased day by day. Due to the movement of physical copy of invoices through different departments, tracking the current status of incoming invoices waiting to be processed versus already processed invoices became a significant task. It was difficult to know the pending liabilities and invoice processing status at any given time. Invoices and supporting documents were not digitally integrated with SAP transactions, which created problems at the time of audit and tax assessment. Manual processing, user-driven business rules, and non-standard approval policies posed challenges in terms of high cycle time, process inefficiency, lack of proper trails and compliance.

There was a need to digitally capture all offline correspondence and approvals in Account Payable workflows. KPTL wanted digitalization of all the incoming invoices, a system driven business rule validation of incoming vendor invoice data and customized approval matrix for invoice approval based on the amount, type of procurement and location. There was also a need for Real-time analytics dashboard and out-of-the-box slice and dice reports, that can improve process visibility in KPTL.

KPTL explored various options and eventually chose to implement the SAP OpenText Vendor Invoice Management solution to achieve faster invoice processing from scanning to posting. With these solutions, they achieved higher productivity and better visibility on their shared services operations.

KPTL chose to partner with Avaali for the implementation of SAP OpenText Vendor Invoice Management solution for their 50 company locations. The implementation team from Avaali conducted detailed workshops with key stakeholders from KPTL to understand the current system and business processes, their pain points, requirements, and created a roadmap for
implementation, transition and change management. The workshops also covered all the aspects of the proposed solution in detail to help KPTL understand how they could leverage the solution to resolve their current Invoice processing challenges. The Avaali team created a detailed blueprint document covering invoice and payment approval scenarios under the implementation scope. With the support of the KPTL team, implementation of the solution was completed in a record time of just two months.

OpenText Vendor Invoice Management solution comes with best-in-class scanning and OCR (Optical Character Recognition) application. The OCR application is equipped with intelligent text recognition engine that can support any type of invoice template and data format. This enables KPTL to automate invoice data capture and routing to SAP applications automatically, with minimal need for human intervention.

KPTL is now able to handle the exceptions and approval flows efficiently using the system driven standardized business rules through workflow automation. OpenText VIM helps KPTL to significantly reduce invoice processing cycle time (40% reduction in cycle time) by digitalizing all the incoming invoice and seamless integration with SAP. KPTL is now able to maintain proper tax compliance with the help of GST compliance number checking in OpenText VIM. Real-time analytics and monitoring of invoices that are being processed provides KPTL with the necessary KPIs for continual process improvements. Furthermore, the digitized copies of invoices are being stored securely in the OpenText Archive Server and
linked to SAP transactions for future reference which helps in eliminating the constant to and FRO of the physical copy of invoices across different departments. With the implementation of VIM solution, KPTL has been able to consolidate their Accounts Payable process and now efficiently process all their invoices through a Shared Service Centre.

After a quick and successful implementation with visible benefits of OpenText VIM in KPTL, Kalpataru Group is now planning to implement OpenText VIM for their centralized Accounts Payable team at Group level.

“Centralized Control while maintaining decentralized processing, legal compliance & digitization was the key requirement for KPTL. We had challenges due to diversified operations at 150+ site offices in India and 30+ countries outside India. After implementation of OpenText VIM, we’re having much better control over our Accounts Payable process. We’ve now built in the maturity in our processes within KPTL with this solution and are well prepared to take the next leap, to centralize Accounts Payable across the Kalpataru Group.”- Ketan Parikh, CIO, KPTL.

  • High invoice processing cycle time with manual data entry, validation and approval process.
  • Distributed invoice processing with no clear visibility of invoice processing status.
  • Reversal of Tax and delay in return filings due to frequent reversal because of wrong entries.
  • Delay in Accounting of Invoices resulting in un-due pressure in terms of payment to Vendor/Sub Contractors.
  • Traceability of Invoices and Vouchers during the time of Audits and Tax Assessments.
  • User-driven business rules, invoice approval and payment processes leading to compliance issues.
  • OpenText™ Vendor Invoice Management for SAP® Solutions
  • OpenText™ Invoice Capture Centre
  • OpenText™ Archiving for SAP® Solutions
  • OpenText™ Document Access for SAP® Solutions
  • Quick solution implementation in 2 months
  • Ability to process over 100,000 invoices per year
  • 40% reduction in invoice processing cycle time
  • Consolidation of distributed invoice processing across all its location.
  • Centralized verification of invoices with system-driven business rules and approval process.
  • Tax Compliance in terms of verifying Input Tax Credit with ease and avoid mismatches on GSTN.
  • Early visibility to liabilities to ensure the provisions.
  • 360-degree view of Invoice processing with real-time dashboard and out-of-the-box reports.
  • Better Governance and Compliance.
  • Early visibility to liabilities to ensure compliance to vendor payments.
  • On the go invoice approval using Email, Mobile and Web portals.
  • Real-time reporting for both invoice and payment processing.
  • Easy tracking of physical invoices using scan location and DP number.
  • Email notifications to different stakeholder for their vendor payments.

Avaali Solutions is a company that enables Enterprises to drive and delivers business results by leveraging digital technologies. Avaali has strengths in providing Enterprise Information Management (EIM) solutions. Avaali’s advisory, consulting and
implementation services has enabled enterprises to transform their business processes and engage better with their stakeholders including customers, employees, partners, vendors, and shareholders.

Kalpataru Power Transmission Limited (KPTL) is amongst the largest players firmly entrenched in the global power transmission and infrastructure EPC space. With proven experience and expertise spanning over three decades, KPTL today has established its footprints in over 50 countries, executing marquee projects with comprehensive capabilities that deliver complete solutions covering design, testing, fabrication, erection, and construction of transmission lines, oil and gas infrastructure and railways projects on a turnkey basis.

To learn more about Kalpataru Power visit: http://kalpatarupower.com