Construction Industry Solutions LtdCOINS BuildingThe Grove, SloughBerkshire, SL1 1QP

Tel: +44 1753 501000Fax: +44 1753 711010Web: www.coins-global.comEmail: salesinfo@coins-global.com

A COINS Case Study

Connaught Group reduces AP invoice handling costs with eInvoice services

DEFINING THE PROBLEM

The Connaught Group, like most Integrated Service providers, has a large supply

chain that includes a complex variety of 3,200 suppliers. Between them, these

suppliers submit over 792,000 purchase ledger invoices annually. The majority are

low-value invoices, with many being for regular and repeat products and services

from Connaught’s preferred suppliers.

Handling and clearing over 66,000 invoices each month presents Connaught with

a number of significant labour-intensive challenges; from opening and handling the

post, to invoice scanning and data input.

Connaught, in line with the majority of businesses operating in the public sector,

social housing and compliance markets, wants to manage down the Accounts

Payable (AP) process cost, whilst at the same time streamlining the process. Their

goal is to increase both efficiency and productivity.

Connaught’s objectives are to channel an increased share of the spend through

fewer suppliers, and to persuade these reduced number of suppliers to trade

electronically. The target is to place 80% of Connaught’s material, plant and services

spend through 30 to 40 of their top preferred suppliers. This proportion of spend

would also account for more than 80% of all business transactions.

To drive compliance with the approved procurement strategy and to ensure that

they remain one of Connaught’s preferred suppliers, the suppliers have to adopt

eInvoicing as the mandatory initial component of their eTrading strategy. As a quid

pro quo, and in part due to the relatively low value of deliveries, Connaught has

removed some 3-way matching and proof-of-delivery recording, in preference for

2-way matching and regular internal audit of deliveries.

Connaught estimates that processing eInvoices will result in a 3 minute saving for

each transaction handled electronically. This delivers a combined process time

saving of 845 man weeks of effort (based on 80% of 792,000 transactions at 3

minutes per transaction) with a process cost saving of £475k (80% of 792,000

transactions at 25p per transaction minute saved).

SOLUTION:

Connaught has adopted the COINS-etc eInvoice transaction delivery service

provided through the COINS-etc eTrading Hub. COINS-etc provides a secure end-

to-end eInvoice delivery and verification service as well as a managed supplier

adoption and on-boarding programme.

QUICK FACTS

3,200 suppliers

792,000 purchase ledger

invoices per year

80% handled electronically

3 minutes saved per

transaction

845 man weeks of effort saved

annually

£475,000 per year process

cost savings

Construction Industry Solutions LtdCOINS BuildingThe Grove, SloughBerkshire, SL1 1QP

Tel: +44 1753 501000Fax: +44 1753 711010Web: www.coins-global.comEmail: salesinfo@coins-global.com

eInvoices are presented to the Connaught AP team through

a eInvoice Workbench, where they have already been pre-

matched against the purchase order (PO). Where an eInvoice

matches the PO within agreed parameters (a 2-way match),

they are accepted by the AP team and the AP ledger and

Connaught’s document management system are updated.

Unacceptable errors and differences between the eInvoice

and the PO are flagged, and the eInvoice is held pending AP

staff intervention. The proportion of eInvoices automatically

cleared for payment the first time is directly related to

the underlying quality of the PO. Therefore, as PO quality

improves over time, so will the number of eInvoices that are

automatically cleared for payment.

The COINS-etc eInvoice transaction delivery service is the

most secure, efficient and cost effective mechanism to

deliver suppliers’ invoices directly into the Connaught COINS

application. Once the eInvoices have been produced by the

suppliers’ back office application, the invoice transmission

and delivery is checked, verified and completed in minutes.

The eInvoices are delivered directly to the Connaught

AP team’s desktop already auto-matched against the PO.

The Connaught AP team doesn’t need to do any invoice

registration data entry, eliminating the introduction of

clerical or transposition errors. Delivering the invoice

electronically saves all the costs associated with handling

paper invoices–folding, stuffing in envelopes and franking–

and also removes delivery-related delays associated with

postal delivery services. Electronic delivery of invoices also

considerably reduces processing cost and time for the selling

organisation, where it saves data entry time; reduces process

cost and time; and ensures complete invoice integrity and

accuracy for the Connaught organisation.

Process Connaught Business Benefit Supplier Business Benefit

Produce and deliver AP eInvoices

Faster production and delivery of invoice.

No stationery and postage costs.

Low to negligible cost of invoice delivery.

Delivery certainty with notification.

Increase opportunity to reduce Days Sales Outstanding (DSO).

Post handling and invoice scanning

No invoice post to open and sort and no envelopes to dispose of.

No invoice scanning and image quality checking.

Removes ALL paper handling and storage.

eInvoice data entry

No invoice registration data to be keyed-in.

Absolute accuracy and complete assurance that the invoice details on Connaughts AP ledger is exactly the same as in the suppliers Sales Ledger.

Improves throughput time and reduces invoice processing cost.

No risk of Connaught misinterpreting or wrongly inputting invoice details.

The fastest and most direct route for an invoice to get into the Connaught AP system for approval

eInvoice matching to PO

Drives improvements in PO timeliness and quality.

Increases the opportunity to auto-match invoice to PO (improving first-time match KPI).

BENEFITS SUMMARY

About Connaught

Connaught is the UK’s leading integrated services

provider, operating in the social housing, public

sector and compliance markets, with annual sales

in excess of £600 million and operating with

over 8,500 staff.