Leggett & Platt Named ACE Award Finalist for Automating AP & AR Processes
Leggett & Platt is a diversified manufacturer that conceives, designs, and produces a broad variety of engineered components and products for customers worldwide. The AnyDoc solution provides Leggett & Platt the ability to capture data from invoices and remittances without manual keying or the use of templates. It also allows them to increase the speed of processing and overall throughput and simultaneously, reduce costs. The solution seamlessly integrates with their existing PeopleSoft and GEAC mainframe applications.
"With AnyDocINVOICE and AnyDocREMIT, we have achieved a return on investment (ROI) in just over 10 months for the combined AP and AR implementations," said Mike Robertson, Staff Vice President of Corporate Shared Services for Leggett & Platt. "Automation allowed us to shorten invoice cycle time to just hours. The results speak volumes: the average number of invoices processed in 2010 is nearly 220% higher than 2008with the same staffing levels at our Corporate office."
Leggett & Platt has reduced its per invoice cost by 46% in one year, and reduced the number of staff anticipated by more than 40%. In addition to slashing $1.5 million in labor costs annually, they have cut their office supplies budget by 73% with the reduction of files, file boxes, and paper. Automation has also helped them reduce their environmental impact by saving more than 250 reams of paper annually, equating to 15 trees per year.
Automation in the AR department has also resulted in an increase of 67% automatic cash application rate, shortening total cash application cycle time to just half a day, compared to a previous average of 3 to 4 days (a decrease of 87%). Additionally, Leggett & Platt slashed $100,000 in labor costs annually in the AR department, and significantly decreased the number of misapplied checks. AR automation also reduces the amount of paper usage, toner expense, and the need for equipment maintenance.
Prior to implementing the AnyDoc solution, Leggett & Platt's AP department manually processed $3 billion invoices with more than 120 AP personnel located at 250 locations in the United States and Canada. From more than 55,000 unique vendors, the invoices arrived via mail, email, or fax. All data from the stacks of paper was manually keyed into their ERP and transferred into a mainframe application for payment.
In the AR department, a similarly tedious manual process was in place to process $3.6 billion of checks received at the corporate office. Previously, more than 95% of their payments, or roughly 350,000 a year, needed to be applied manually. When a question arose on a cash application, the entire paper package consisting of copies of the checks, envelopes, remittance statements, and cash worksheets from the AR system needed to be sent to the credit management staff for guidance.
Now, the automation achieved with AnyDocINVOICE and AnyDocREMIT provides a total savings of $1.6 million annually, and generated an ROI in just over 10 months. A reduced staff is able to easily handle more than twice the volume prior to automation while simultaneously decreasing cycle time up to 87%.
"We are truly delighted to spotlight Leggett & Platt as a finalist for this esteemed ACE award recognition," said Samuel Schrage, President of AnyDoc Software. "The solutions they pursued and their obvious success makes their implementation an 'ace' in anyone's book."
About Leggett & Platt
Leggett & Platt is North America's leading independent manufacturer of the following: a) components for residential furniture and bedding; b) components for office furniture; c) drawn steel wire; d) automotive seat support and lumbar systems; e) carpet underlay; f) adjustable beds; and g) bedding industry machinery. For more information, visit www.leggett.com.
Über die AnyDoc Software GmbH
AnyDoc Software has been developing awardwinning document, data capture, and classification solutions since 1989. More than 3,000 clients and 70,000 users worldwide in 45 countries rely on AnyDoc solutions to eliminate millions of hours of manual data entry while improving their productivity and data accuracy. Any paper form or document including insurance notices, claims, invoices, remittances, and checks can be automatically processed with full data capture without the need for manual keying. Clients include: Fastenal Company, Sony Pictures Entertainment, BlueCross BlueShield, the U.S. Census, LeasePlan, Coop, and more. For additional information, please visit www.AnyDocSoftware.com.