Basware: Tools for Our Times - Jari Tavi

Efficient invoice processes can help companies save money and give them the transparency to improve their decision-making. Jari Tavi, CTO of Basware Corp, tells FDE that invoice automation and e-invoicing are becoming more popular as corporates seek efficiency, security and visibility.

The many capable vendors of electronic invoice presentment and payment (EIPP) solutions have long known the value of their products but the message is now starting to filter through to forward-thinking corporates. As companies wrestle with uncertainty in the global economy and the financial markets they are looking to invest to improve efficiency and visibility.

Corporates are familiar with the concept of EIPP and are digging beyond the surface to see how invoice automation can cut cost and boost process efficiency.

‘We have demonstrated that our tools can help companies fight the recession. We enable them to trust in the high quality of information on their payment pipeline,’ says Jari Tavi, CTO of Basware Corp.

Analysts at Forrester rate Basware as the leading accounts payable EIPP vendor in a strong field, thanks to the functionality of its invoice management solutions, extensive invoice networks and strong strategic vision. Its commitment to interoperability with other networks through a service-oriented architecture and the continued development of its EIPP product also set it apart.

Basware’s e-invoicing solution offers senders a data-rich and more accurate alternative to paper invoices, enabling companies to improve their payment timetable, minimise their customers’ manual workload, and greatly reduce printing and mailing costs.

Receivers of invoices can automate their accounts payable process to accelerate invoice acceptance and matching. Supplier activation reduces the lead time to production by providing a more rapid increase in invoice volumes. The solution also verifies each sender, further enhancing security built on encryption.

Basware’s invoice automation solution includes invoice processing, contract matching, order matching and data capture with advanced OCR and learning capabilities. Together, these modules help organisations achieve full transparency and control throughout the accounts payable process, and cut invoice processing workload by 60% or more. Basware solutions integrate with over 200 different ERP systems, extracting value from them and enabling companies to better leverage their existing ERP investment.

‘The recession is a catalyst and the return on investment is very fast. The benefits keep growing as companies see how they can use the visibility to improve operational excellence,’ says Tavi.

From impetus to action

Corporates’ approaches to EIPP vary greatly, as does the effectiveness of solutions on the market.

‘Many large companies don’t understand that the level of performance improvement varies greatly depending on the tools you use. There is a difference between using ERP workflow and invoice automation. Many companies are missing out on e-invoicing and huge savings,’ says Tavi.

He notes that automation of the invoicing process is 40-50% with ERP workflow solutions, but up to 93% with EIPP. ‘Companies need to understand how the tools work together. We target excellence in working capital management, so we are improving the platform and developing a centre of excellence. We are moving towards integrated shared services. Finance and procurement need to work more closely together on the payment value chain,’ he explains.

Many more large companies are starting to adopt this holistic, forward-thinking attitude towards payments. For instance, Basware Order Matching automatically matches over 90% of incoming electronic order-related invoices at a leading brewery.

From his own experience, Tavi urges corporates to consider carefully how they lead an EIPP project.

‘IT focuses on the tools. The business side of an organisation looks at process improvement,’ he explains. ‘A project is always more successful when the business brains are influencing the IT. I’ve been in IT for 22 years, and this is the first time I have come across a situation where the finance department could do the implementation without help from the IT people, though they should be kept in the loop.’

Invoice automation is rooted in the finance department, so with a clear blueprint, a commitment to process improvement and – crucially – the right vendor, many corporates could make a swift transition to a more efficient operating environment.