Keeping American Airlines Light – Conquering the Paper Mountain
American Airlines had done a great deal of work to reduce paper in their Accounts Payable department. In fact, 83% of invoices were delivered electronically via EDI. But the last 17% proved too difficult to convert to EDI. Among the challenges:
Some vendors were too small to implement a technical solution like EDI.
EDI processes could not accommodate some internal business rules at American Airlines, such as special approvals or special invoice types, therefore, those invoices continued on paper.
Although EDI and automated matching processes reduced overall work, it still created a large number of burdensome match exceptions.
Since American Airlines enlisted the services of iPayables, they have stopped the expensive growth of their EDI support group, have dramatically reduced match exceptions through iPayables Purchase Order/Invoice validations, and are quickly converting the remaining 17% of paper to iPayables AP automation. American Airlines’ vendors, large and small, use the full range of iPayables tools, from manual entry or file uploads, to fully automated file transfers from large vendors with SAP. A recently added benefit, all vendors can see the status of their invoices whether the invoice was sent via iPayables, EDI, or paper.
iPayables has allowed American Airlines to continue dramatically reducing costs through the elimination of data entry and filing, and a large reduction in vendor phone calls, dispute resolution, matching exceptions and other manual tasks.
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