Industriehof Scherenbostel embraces next level AP automation

Industriehof Scherenbostel automated and streamlined their entire accounts payable process to save valuable time and to improve control and quality of the invoice processing. MediusFlow in the cloud is the AP platform that the Germany-based global company relies on.

Industriehof Scherenbostel is one of Europe's leading suppliers of agricultural machinery parts. The German company has been delivering spare and wearing parts, as well as components, since 1975. The business has grown both organically and through mergers and acquisitions. Its portfolio encompasses more than 23,000 parts including 3,000 specialized custom-made components.

These parts are stored on a surface of over 15,000 square meters (161,458 sq. feet), ensuring a high availability and fast delivery. On top of that, the company has a highly advanced department for product and design development in order to fulfill the increasing customer demands. This way, Industriehof Scherenbostel connects a customer-centric approach with a comprehensive portfolio and an outstanding operational excellence.

Industriehof Scherenbostel product image

Complex invoices – to say the least!

To support all the finance and operations processes, Industriehof Scherenbostel uses Iptor’s ERP system DC1. However, an area that still needed attention, to say the least, was the accounts payable process. Industriehof Scherenbostel is dealing with very complex - mainly paper based - invoices that are matched with highly customized orders. Nuts and bolts are available in numerous variations. Large quantities mean a discount of a few percent, but if a special metal or a specific coating is used a surcharge is applied. Next to that, every supplier uses a different invoice template and some templates - especially those from Asian companies - tend to be very hard to understand. Further complexity lies in the payment agreements; an early payment means a considerable discount.

In the end, the standard manual way of handling incoming invoices was considered too time consuming, error prone and delivered little possibilities for control methods and analytics.

The process prior to MediusFlow included:

  • Scanning of paper invoices
  • Check in at the accounting department
  • Handover to the purchase department (if the invoice was order-based) for checking and approval
  • Return to accounting for booking and payment

Less time, less errors

What we needed was an integrated and highly automated accounts payable (AP) solution that would speed up the whole process of invoice handling in order to gain more time for other accounting tasks, like reporting and controlling”, describes project manager Sven Slowak of Industriehof Scherenbostel.

After a profound market research, the company selected the AP automation solution MediusFlow, which provided numerous advantages. First of all, MediusFlow enables full visibility of the accounts payable process for complete control of outstanding invoices, process bottlenecks and efficiency performance indicators.

Secondly, MediusFlow offers the AP team at Industriehof Scherenbostel automation capabilities to streamline their process and accelerate invoice processing. They can focus their AP resources on the strategic and value adding tasks that really matter. Errors has been more or less eliminated, which boosts business activities and eases the burden of customer service in relation to AP.

Furthermore, MediusFlow offers seamless connectivity with Industriehof Scherenbostel’s ERP system, Iptor DC1, which extends the automation of invoice processing through all levels. The matching of invoices and purchase orders used to be a time-consuming process, but now, order data is synchronized with the ERP and the matching is done automatically as soon as the invoice is recognized in MediusFlow. Less time, less errors.

Great expectations of the cloud

Recently, Industriehof Scherenbostel decided to switch to the MediusFlow cloud solution.

The main reason to migrate to the cloud solution was the fact that we don’t need our own servers and that we don’t need to take care of program updates. On top of that, we are always sure to work with the latest updates and program enhancements. So we benefit directly from all the innovations that Medius develops,” says project manager Sven Slowak.

The team at Industriehof Scherenbostel works closely with Medius’ AP automation experts to implement best practice workflows that help increase the speed and quality of their AP process. The migration to the cloud was an important step in this process performance acceleration.

I’m happy to see that our AP colleagues are fond of the Medius workshops and they get a lot of energy working with the new solution. I expect great results regarding processing times and analysis & control features. We will be able to automate the processing of a lot more invoices, leaving us more time to handle the exceptionally complex ones.”