Case Study: ConAgra Foods

Starting with the adoption of SAP as its ERP (Enterprise Resource Planning) tool, the company selected Kofax MarkView for AP due to its integration with SAP and its proven track record of implementing best practices for end-to-end processes. Kofax's extensive experience in finance automation, its robust out-of-the-box functionality, and its validation by third-party experts such as Gartner Group and Hackett Group were also key factors in the adoption of Kofax MarkView for AP at ConAgra Foods.

A gradual, multifaceted, multi-year approach that had as a key element the establishment of a business shared services center in Omaha, Nebraska for accounting transactions, including accounts payable, accounting, time and expenses, inventory, payroll, and accounts receivable. Initially, ConAgra Foods processed 250,000 invoices annually and expected the volume to grow to more than one million annually.

The challenge

At the beginning of this multi-year process, ConAgra Foods' operations were distributed and managed plant by plant or function by function, involving multiple systems and processes for accounts payable, as well as various sets of controls, audit processes, reporting processes, and storage systems.

Invoices were received on paper at each plant and handled using plant-specific processes and technologies. Invoices were saved using P8 after scanning and storage, or in printed form. It was difficult to collect business metrics for analytical purposes across these distributed systems, and there was a lack of precision in tracking the number of invoices, the cost of each, early payment discounts, and the impact on key suppliers. In addition, there was insufficient visibility into the invoice approval process, as well as limited procurement efficiency and complicated manual controls.

The solution

ConAgra Foods worked with Kofax to implement SupplierExpres with MarkView workflows. “Kofax has created two custom workflows for our team. One for non-SAP Marketing invoices, and one for Freight Pay invoices. These custom workflows have helped us convert the marketing department and freight pay to our standard ERP process. Invoices that enter the system, whether via email, fax, or mail, are scanned into the system and then move to our standard workflow queue,“ explains Pam Russavage, Financial Manager of Accounts Payable and Document Management. “Some are distributed for approval, while others are applied against a purchase order. It has been a huge advantage for us to have the invoice details within the system. This has really improved our processing.”.

The adoption of Kofax MarkView for AP significantly simplified the invoicing process for ConAgra Foods by eliminating the receipt of invoices in multiple locations and establishing the immediate capture of invoices received via fax, email, and EDI (Electronic Data Interchange) at a central location. Invoices are now immediately captured in SAP, and a streamlined workflow handles exception management, coding, approval, and payment, ensuring greater efficiency.

The Results

ConAgra Foods AP Group has eliminated 40 percent of its supplier calls through the implementation of Kofax SupplierExpress, which improved the efficiency of the accounts payable department. Russavage explained, “most suppliers have become adept at using the tool after one or two sessions in the system. Since SupplierExpress is intuitive and flexible, they can get the information they are looking for quickly. We have eliminated 40 percent of the calls we receive, including a large number of repetitive ones. That was the goal.

As the volume of processed invoices has increased and support calls have decreased, ConAgra Foods was able to reduce staff and save up to 25 percent of your traditional labor costs in the accounts payable department. ConAgra Foods has also extracted great value from its ability to gain visibility into invoices within the company, from the accounts payable team to the purchasing and receiving of equipment across various plants in order to resolve discrepancies.

When measuring return on investment, ConAgra Foods looks at the reduction in the entire workflow, the reduction in support calls, and the number of invoices paid in compliance with terms. “We wouldn't be anywhere near where we are without the comprehensive capabilities that MarkView and SupplierExpress have given us,” said Russavage.

“When we started this process three years ago, 55 percent of the invoices were overdue when they came in. Today, 93 percent of the invoices are paid according to terms. That is a massive turnaround”.

Moving forward, ConAgra Foods believes its Kofax solutions can help in two major ways: by using SupplierExpress to enable suppliers to obtain up-to-date shipping information electronically, and by leveraging the information captured in queues and using MarkView's analytical tools to complete a root cause analysis.