Bohus doubled the performance at half the cost

Bohus has achieved best in class AP invoice automation by upgrading to MediusFlow XI in the Cloud.

Bohus AP automation case study

MediusFlow XI and the cloud gave us substantial gains: The touchless rate increased from 20 percent previously in some cases to an average of 80 percent. The amount of money saved annually is roughly equivalent to the annual salaries of ten full-time employees and approximately NOK 5 million (USD 600K).
Per Magnus Frantzen, CFO at Bohus

In summary:

  • Bohus is an interior design company with 59 stores and an online store in Norway.
  • Products: MediusFlow XI Invoice, Match, Contract and Procurement. The solution is cloud based.
  • Number of supplier invoices: Manages 300,000 order-based invoices per year at the chain's headquarters in Oslo
  • Electronic invoices: 80% of incoming supplier invoices are in EDI (XML), and the rest are received in hard copy or via email

MediusFlow milestones:

  • 2010: Launched MediusFlow
  • 2012: Integrated MediusFlow 10 with SAP
  • 2016: Upgraded to cloud-based MediusFlow XI

Results:

  • Increase from 40% to 88% in automatically approved order-based invoices (touchless) thanks to the upgrade to MediusFlow XI
  • Annual savings of approximately NOK 5 million (USD 600K)


Bohus is Norway's largest nationwide furniture and interior design chain. A steady stream of supplier invoices is generated with 59 physical stores, an online store and sales of approximately NOK three billion (USD 360 million) - 300,000 supplier invoices per year, to be exact. The accounts payable process is now best in class following the upgrade to MediusFlow XI in the cloud. An ambitious investment that saves millions - every single year.

Bohus AP automation case study

In 2010, the popular furniture chain chose to implement MediusFlow. Two years later, Bohus upgraded to MediusFlow version 10 and integrated the solution with the ERP system SAP. The aim was to bring together the order-based invoices of all stores into one centralized workflow and to fully automate the process for supplier invoices.


Controls for costs and products are very important in retail, and we realized early on that automatic line level matching for supplier invoices could exponentially raise our efficiency and improve our control. The ability to match our order-based invoices to a purchase order helped us incorporate all our stores into one centralized workflow, and this has really strengthened our accounts payable process, says Per Magnus Frantzen, CFO Bohus AS.

Upgrading to the cloud

Once Bohus had successfully saved on accounts payable automation costs, the time came to further streamline the accounts payable efficiency in 2016. Six years after upgrading to MediusFlow version 10, Bohus took the next step up to the cloud and MediusFlow XI. But the system was not the only thing being upgraded. The percentage of automatically approved order-based invoices – touchless processing – was increased to a new level as well.

We wanted to become even more efficient and increase the touchless rate even more, which entails automatically verifying and approving order-based invoices without any manual steps in the process. And the results met and even exceeded our expectations. In some cases, we raised the touchless rate from 20 to 80 percent,” Per Magnus explains. “But we have also significantly improved our ability to conduct advanced analyses and create powerful reports. The value added by the upgrade is thus significant in many ways, says Per Magnus.

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Smooth transition to MediusFlow XI

The decision to upgrade was made in late 2015. The goal was to significantly reduce the proportion of manually processed supplier invoices, thus saving valuable time and increasing efficiency. After conducting a short feasibility study and setting clear objectives, Bohus took the plunge in May 2016 and switched to MediusFlow XI in the cloud.

The transition went very well. MediusFlow and SAP work together like a charm, and the users really like the new version. My colleagues praised the user interface, the ability to build personal dashboards, how fast the pages load and a number of other features. In short, they are highly satisfied, says Per Magnus.

In comparison to the way it was in the past, when staff processed and approved supplier invoices manually in 59 stores, the current centralized and automated accounts payable process is nothing less than impressive.

We now have a centralized structure for our accounts payable process and everyone involved in this process is an expert. We have reached a higher level of professionalism both in the processing of invoices and the accounts payable process, but also due to the fact that we operate in the cloud and do not need to worry about servers, security and availability. We always have the most modern version without having to worry about upgrades and upgrade projects, says Per Magnus.

Financial gains – on several levels

For Bohus, the upgrade to MediusFlow XI and the cloud has been a success, and ambitious goals have been achieved. Improved procedures, processes, control, visibility... at the end of the day, it boils down to an improved profit margin for a growing Bohus.

The advantages include having full control over whether we pay the price we agreed on with our suppliers. We immediately see if the price of the agreed order is different from the invoice. We have amazingly good control, and this produce results. It is no exaggeration to say that we now pay less for our invoice management, but we get more out of it. We have dramatically lowered the cost per invoice with the new system, just as it should be, says Per Magnus.

And the direct savings are significant for Bohus.

The amount of money we saved by investing in MediusFlow is roughly equivalent to the annual salaries of ten full-time employees, and we cut the costs of this work by nearly NOK 5 million (USD 600K) annually. It is therefore a fact that the investment has paid off quickly, Per Magnus adds.

A relationship for the future

Bohus has constantly placed high demands and challenged Medius to enhance efficiency using cutting-edge technology. And, in the opinion of Per Magnus, Medius has exhibited great responsiveness and cooperativeness in its business relationship with Bohus.

The consultants at Medius are good at delving into and comprehending our world and our needs. They are good at listening and interact well with us. We can tell that they want to make life better for us. We are not always easy to deal with and we have high goals, but they have been highly flexible and I have great trust in them as a supplier. They have helped Bohus substantially improve its profit, and also helped us along the way in our continuing expansion, concludes Per Magnus Frantzen, CFO Bohus AS.

About Bohus

Bohus is Norway's largest nationwide furniture and interior design chain with 59 stores spread out across the country and annual sales of NOK 3 billion.

The headquarters (Oslo) for the Bohus AS chain is responsible for the overall development strategy, retail and employee development, product range selection, supplier negotiations, marketing, purchasing, IT and finance.

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