Free Case Study: How Tiendamia achieved an average approval and accounting time for purchase invoices of 2 hours (operating in 5 countries)

With manual processes hampering the speed and fluidity of invoice approvals, Tiendamia identified the need for an innovative solution to optimize their workflow and free their team from repetitive tasks. This led them to implement Xtract, an advanced AI-powered automation tool that not only revolutionized their approval system but also significantly enhanced their operational efficiency.

Background

Tiendamia, a leading cross-border e-commerce company, faces the challenge of processing between 1,000 and 1,650 invoices monthly. In an operation of this scale, where efficiency and accuracy are critical, each invoice requires approval by at least two people to meet the company's internal control policies.

As the volume of invoices increased, the manual review and approval process became a considerable burden. The finance and administration team had to ensure that each document went through the proper controls, a workflow that often extended beyond the desired timeframe, impacting the organization’s agility and financial visibility. Recognizing these challenges, Tiendamia adopted Xtract, an advanced AI-driven process automation solution.

Implementation of Xtract at Tiendamia

Xtract was integrated into Tiendamia's systems to automate the invoice approval flow from receipt to final authorization. A key feature of this integration was Xtract’s intelligent reading technology, which stands out for its accuracy of over 97% and its ability to set customizable approval rules based on specific criteria such as invoice amount, currency, vendor, and other relevant data.

Thanks to these capabilities, the system automatically assigns each invoice to the appropriate approver immediately. This automation allows documents to move seamlessly from one review level to another without manual intervention, preventing bottlenecks and speeding up communication among the various approvers.

Multiple levels of approval

One of Tiendamia’s specific requirements was the ability to incorporate multiple levels of approval into the workflow, ensuring that each invoice met the required authorization levels. With Xtract, they configured an approval flow in which the team leader can give final approval only after team members have reviewed and validated the invoice. This staged approach ensures that the process flows smoothly and that every document is thoroughly reviewed before being recorded.

Results: Time savings and efficiency

Approval time is measured from when the supplier sends the invoice to Tiendamia's supplier email until it is approved by all collaborators involved. Since implementing Xtract, Tiendamia has achieved an average invoice approval time of just 2 hours. This represents a radical improvement compared to previous times, which could extend much longer due to manual processing and the lack of automation in routing and approving invoices.

With a monthly volume of 1,000 to 1,650 invoices, Tiendamia has seen how Xtract not only speeds up the team’s response time but also reduces operational effort by 70%, freeing collaborators from manual tasks to focus on strategic functions. This level of optimization equates to significant cost savings and a notable improvement in expense visibility and financial control.

Results achieved

The average invoice authorization time was reduced to just 2 hours, compared to up to 20 hours or more previously. Additionally, automating the entry of invoices into the ERP significantly saved the accounting team’s time.

Below is a table detailing the time and cost savings achieved:


Calculation of Savings in USD:

• Average monthly salary of an accounting assistant: $1,800 (160 working hours).
• Hourly cost: $11.25.
• Accounting assistants required for manual processing: 1 per 700 invoices.
• Savings in USD: Total hours saved × $11.25.

Conclusion

Tiendamia's success with Xtract is a testament to the power of intelligent automation in managing complex financial workflows. Operating in multiple countries with diverse accounting regulations and requirements, Xtract’s solution proved essential in maintaining Tiendamia’s agility in a competitive market. Similar companies can draw inspiration from this case to enhance their processes and gain a competitive edge.

By implementing a solution tailored to their needs, Tiendamia has optimized their approval workflow, reduced the average authorization time, and maintained rigorous control over every transaction. This experience demonstrates how Xtract’s technology can transform administrative processes for companies of any size, providing efficiency, transparency, and control.

For companies looking to improve their operations and allocate resources to strategic areas, Tiendamia’s experience serves as an inspiring example of the impact a solution like Xtract can have.
 

Want to know how to implement Xtract in your company?
Schedule a meeting with our team and get a 20% discount on the monthly service fee:

Schedule a meeting here