Friedman Steel Streamlines Payments with Automation Solution
Overview
Friedman Steel Products, Inc. is a company that processes, packages, and distributes flat-rolled steel products. Known for its commitment to quality and innovation, Friedman has been at the forefront of the industry for decades. Friedman Steel serves a diverse range of sectors, including automotive, construction, manufacturing, appliance, and HVAC industries.
Challenges
As Friedman Steel expanded, managing the increasing volume of invoices became a significant challenge. The company processed over 3,000 invoices monthly, and manual handling led to inefficiencies, errors, and delays. Friedman Steel needed a solution to streamline its payment processes, ensuring timely and accurate payments to vendors.
Solution: Payment Automation by Star Software
Friedman Steel partnered with Star Software to implement a Payment Automation solution. Initially using SAP systems, the solution was designed to automate the entire payment process, from invoice extraction to payment authorization.
Key Features:
- Automated Invoice Extraction: Using state-of-the-art OCR technology, Star extracts invoice details and feeds them into the ERP system.
- Voucher Creation: Creates vouchers from the fed data, matching it with vendor details in the ERP.
- Bank Integration: Sends payment information to the bank for authorization.
- Purchase Order Closure: Closes purchase orders once payments are completed.
Later, when Friedman Steel transitioned to Stratix ERP, Star Software provided the same robust solution, ensuring a seamless transition and continued efficiency.
Impact and Results
The implementation of the Payment Automation solution by Star Software brought significant improvements to Friedman Steel:
- Increased Efficiency: Automated processing of over 3,000 invoices monthly, reducing manual intervention and speeding up payment cycles.
- Error Reduction: Automated validation checks minimized errors, ensuring accurate payments.
- Improved Vendor Relationships: Timely and accurate payments strengthened vendor relationships, enhancing Friedman Steel’s reputation as a reliable partner.
- Cost Savings: Reduced operational costs associated with manual processing, including labor and administrative expenses.
- Scalability: The solution scaled effortlessly with Friedman Steel’s growth, supporting increased invoice volumes without additional strain on financial operations.
By implementing the Payment Automation solution from Star Software, Friedman Steel has streamlined its payment processes, reduced inefficiencies, and improved accuracy. This strategic move has fortified Friedman Steel’s position as an industry leader, demonstrating the critical role of automation in modern business operations and positioning the company for continued growth and success.