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Navigating the demands of complex, multi-channel accounts payable operations
A global leader in pharmaceutical distribution and medical supplies, the client operates across multiple segments, serving biopharma companies, pharmacies, healthcare providers, and government entities. Their Accounts Payable (AP) teams process a high volume of invoices spanning channels like retail banner groups, dropship services, and carrier invoices. Legacy systems struggled to handle the complexity of these operations, creating a demand for a more advanced solution.

Overcoming unique challenges in high-volume, multi-format invoice handling
The client faced significant obstacles in their AP processes, including:

  • Complex Invoice Formats: Invoices arrived in varied formats like PDFs, Excel sheets, and multi-page documents, requiring labor-intensive manual data extraction.
  • Multi-Tiered Billing Structures: Diverse charges—such as base rates, surcharges, and discounts—added layers of complexity to reconciliation efforts.
  • Data Inconsistencies: Ambiguities in invoice details (e.g., “Miscellaneous charges”) and missing shipment specifics led to delays and manual clarifications.
  • Invoice Matching Challenges: Matching invoices with purchase orders and contracts frequently encountered discrepancies, causing payment errors.
  • Rate and Tariff Complexities: Rate calculations depended on shipment zones, weights, and seasonal variations, requiring real-time data integration.
  • Human Error and Fraud Risk: Manual handling exposed the process to higher risks of errors and fraudulent billing.

Transforming AP with Star Software’s AI-powered AP automation
Star Software’s AP automation solution revolutionized the client’s invoice processing by integrating seamlessly with SAP, mainframes, and Oracle Transport Management (OTM). The solution leveraged advanced AI for data extraction, validation, and matching, significantly reducing errors and processing time.

Key features of the solution included:

  • AI-Driven Document Extraction: Adaptive AI models processed diverse invoice formats, accurately extracting data from thousands of multi-page documents.
  • Intelligent Categorization: Automated splitting and categorization handled high-volume email attachments and consolidated invoices.
  • Advanced Validation and Matching: Algorithms matched invoice details with contracts and shipment data, ensuring compliance and accuracy.
  • Anomaly Detection: Machine learning flagged unusual billing patterns, preventing overcharges and identifying discrepancies.
  • Integration with Shipment Tracking: Automated cross-checking aligned billed services with actual shipment records.
  • Streamlined Exception Handling: Automated workflows resolved discrepancies faster, reducing payment delays.
  • Detailed Audit Trails: Comprehensive reporting enabled better error tracking and cost control.

Improved efficiency across logistics channels

  • Retail Banner Group Channel: Processing 500,000+ invoices annually, automation achieved 85% straight-through processing, saving $750K annually.
  • Dropship Channel: AI integration reduced errors for 200,000 invoices annually, achieving $200K in productivity savings.
  • Carrier Channel: Automated line-item processing improved fraud prevention and saved $250K annually across 200,000 invoices.

Driving Results
Star Software’s AP automation enabled up to 90% straight-through processing, yielding $1.2 million in annual savings. Real-time visibility improved decision-making, transforming the client’s labor-intensive AP operations into an efficient, automated system.

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