From Manual to Straight-Through Processing

Navigating the demands of complex, multi-channel accounts payable operations

The client, a global leader in pharmaceutical distribution and medical supplies, operates across multiple segments, serving a diverse range of clients, including biopharma companies, pharmacies, healthcare providers, and government entities. The company’s Accounts Payable (AP) teams manage a high volume of invoices across channels, such as retail banner groups, dropship services, and carrier invoices. Due to the complexity of their multi-channel operations, existing legacy automation systems could not efficiently handle invoice processing, creating a need for an advanced solution.

Addressing unique obstacles in handling high-volume, diverse-format invoices

The client faced unique AP challenges across their diverse logistics channels:

Complex Invoice Formats: With invoices arriving in varied formats, including PDFs, Excel documents, and multi-page PDFs, data extraction was labor-intensive, often requiring unique data handling per invoice type.
Multi-Tiered Billing Structures: Multi-level charges such as base rates, surcharges, and discounts were applied at various levels, complicating automation and increasing reconciliation errors.
Data Inconsistencies: Invoices often included ambiguous details like “Miscellaneous charges” or omitted shipment specifics, requiring manual clarification and slowing processing.

Invoice Matching Challenges: Matching invoice line items to purchase orders and contracts was complex, with discrepancies often causing payment delays or errors.
Rate and Tariff Complexities: Rate calculations fluctuated based on zones, shipment weight, and seasonality, requiring accurate system integration to retrieve real-time rates.
Human Error and Fraud Prevention: Manual invoice handling increased error risk, with the potential for fraudulent charges due to insufficient validation processes.

AI-powered Accounts Payable solution streamlined end-to-end invoice processing with advanced data validation and matching

JIFFY.ai’s AI-powered Accounts Payable solution automated the client’s invoice processing end-to-end, allowing seamless integration across SAP, mainframe, and Oracle Transport Management (OTM) systems. The solution used advanced AI models for accurate data extraction, classification, and validation, significantly reducing errors and processing time.

Key Features of the Solution:

AI-Powered Document Extraction and Classification: Leveraging adaptive AI-powered document extraction models, JIFFY.ai’s solution handled diverse formats, accurately extracting complex invoice data across thousands of multi-page PDFs, reducing manual intervention.
Intelligent Splitting and Categorization: AI-powered modules split invoices accurately and categorized them efficiently, handling up to 500 attachments per email and over 2,000 invoices per document.
Enhanced Data Validation and Matching: Advanced algorithms matched invoice details with purchase orders, contracts, and shipment data, validating weights, and service charges, ensuring compliance with agreed terms.

Anomaly Detection with Machine Learning: Machine learning models flagged unusual billing patterns, helping prevent overcharges and identify discrepancies.
Automated Cross-Checking with Shipment Tracking: Integration with shipment tracking verified services billed, aligning surcharges, and expedited delivery fees with actual records.
Automated Workflows for Approval and Exception Handling: Workflow automation streamlined exception handling, routing discrepancies to relevant stakeholders and reducing payment delays.
Audit and Reporting: Comprehensive reporting provided detailed audit trails, helping the client track errors, improve cost control, and continuously refine AP processes.

Streamlined Invoice Processing Across Channels

Retail Banner Group Channel

In this channel, the client managed over 500,000 invoices annually from more than 1,000 vendors. JIFFY.ai’s AI solution automated invoice categorization and identification, significantly reducing manual errors:

85% straight-through processing
$750K in annual productivity savings
Reduced manual intervention and errors via advanced AI-powered data validation
Improved vendor identification accuracy with machine learning models

Dropship Channel

Handling approximately 200,000 invoices annually, this channel required integration across multiple data sources, including emails, EDI, and customer portals. The AI solution enabled robust data validation and cross-referencing, reducing errors and enhancing processing speed:

85% straight-through processing
$200K in annual productivity savings
Increased accuracy in vendor and customer identification using fuzzy matching algorithms

Carrier Channel

Carrier invoices involved complex line items such as freight charges, surcharges, and refrigeration fees. With over 200,000 invoices annually, JIFFY.ai’s AI solution provided automated line item processing and anomaly detection, enhancing accuracy and fraud prevention:

90% straight-through processing
$250K in annual productivity savings
Seamless integration with shipment tracking to verify billed services

Increased Efficiency and Reduced Costs

JIFFY.ai’s AI-powered Accounts Payable solution significantly improved the client’s invoice processing efficiency across all logistics channels. Key benefits included:

Improved processing efficiency with up to 90% straight-through processing across channels
$1.2 million in annual productivity savings by reducing manual intervention and errors
Real-time visibility and control over AP processes, enabling data-driven decisions for cost savings

Through advanced AI-driven capabilities, our solution transformed the client’s AP operations from manual, labor-intensive workflows to efficient, automated processes, helping them achieve a significant productivity boost and a streamlined invoice management system across logistics channels.

Case Study