Case Study
90% Faster Invoice Processing and cost saving: How Intelligent Automation CoE Transformed Lattice Semiconductor's AP and AR Processes
Download Case StudyLattice Semiconductor, a leading manufacturer of Field-Programmable Gate Arrays (FPGAs), grappled with manual processes in accounts payable (AP) and accounts receivable (AR). Manually managing a staggering 35,000 invoices annually and over 800 vendors across its supply chain created operational bottlenecks, errors, and limited financial visibility. This hindered their ability to make informed decisions and achieve optimal cash flow. Seeking a solution, Lattice Semiconductor partnered with Jade Global, a global leader in intelligent automation services. Jade implemented solutions powered by intelligent technologies like RPA (Robotic Process Automation), OCR (Optical Character Recognition) and Machine Learning. With 95% of invoices processed by bots, there's a remarkable 90% reduction in the invoice processing cycle — from 20 minutes down to just 2 minutes. This streamlined process operates 24/7, ensuring continuous efficiency gains. As a result, Lattice Semiconductor realized substantial savings, amounting to approximately $120,000.
Client: Lattice Semiconductor
Industry: Semiconductor
Key Technologies: UiPath, Oracle EBS
About the Client
Lattice Semiconductor Corporation is an American semiconductor company specializing in the design and manufacturing of low power field-programmable gate arrays. Headquartered in the Silicon Forest area of Hillsboro, Oregon, the company also has operations in San Jose, Calif, Shanghai, Manila, Penang, and Singapore.
Business Challenges
Lattice Semiconductor previously faced several significant challenges in its accounts payable (AP) and accounts receivable (AR) processes, hindering overall financial efficiency. Here's a breakdown of the issues:
- Manual Invoice Processing: Handling a staggering ~35000 invoices per year from suppliers across the globe through a third-party vendor was leading to delays, missed discounts, and inaccurate financial records.
- Large Vendor Pool: Managing over 800+ vendors across its supply chain created complexity for accounts payable (AP).
- High Operational Costs: Reliance on manual tasks for data entry and reconciliation inflated costs and limited scalability.
- Manual Data Extraction: Manually extracting data from invoices for entry into Oracle EBS creates inefficiencies, errors, and compliance risks.
- Cash Flow Bottleneck: Reconciling payments against a high volume of invoices was slow and error-prone, impacting settlements and cash flow.
Business Requirements
Bogged down by the aforementioned challenges, Lattice Semiconductor partnered with Jade Global to implement a comprehensive intelligent automation strategy. This strategic partnership focused on achieving the following key business requirements:
- Data Extraction from Digital and Scanned Invoices Automatically extract structured and unstructured data from both digital and scanned invoice formats for seamless integration into Oracle EBS.
- 3-Way and 2-Way Matching Perform automated matching between purchase orders, invoices, and receipts (3-way matching) as well as between invoices and purchase orders/receipts (2-way matching) to ensure accuracy and compliance.
- Insert Non-PO Invoices Enable automated processing and insertion of non-purchase order (Non-PO) invoices into Oracle EBS, adhering to predefined business rules and validations.
- Business Validations Apply configurable business rules and validations to ensure invoice data accuracy, completeness, and adherence to financial policies and regulations.
- Anomaly Detection and Notification Automatically identify anomalies, discrepancies, or exceptions in invoice data and promptly notify the finance team via email notifications, facilitating timely resolution and compliance.
- Reporting Generate comprehensive reports on processed invoices, matching outcomes, exceptions, and other relevant metrics to support decision-making and audit requirements.
Our Approach and Solutions
Jade Global partnered with Lattice Semiconductor to address their challenges by implementing a robust automation solution.
- Invoice Document Data Extraction
- Receipt of Invoices: Digital and scanned invoices arrive directly in the AP team mailbox for processing
- OCR Data Extraction: Our bots utilize OCR to extract data from scanned invoices. The extracted data is interpreted using Supplier Template definitions and Kanverse AI for accuracy.
- Automated Invoice Data Entry
- Value Checks and Exceptions: Bots perform mandatory value checks and flag exceptions for manual validation as needed.
- Integration with Oracle EBS: Post-extraction and validation, bots seamlessly insert invoice data into Oracle EBS via a custom package API.
Business Benefits and Outcome
Jade Global's automation solutions delivered significant benefits and positive outcomes for Lattice Semiconductor:
- 90% Reduction in Invoice Processing Cycle Time Processing invoices became significantly faster from 20 mins to 2mins, leading to faster payments, improved vendor relations, and potential early payment discounts.
- 95% Bot-Processed Invoices Successfully reduced manual workload and minimised human error, ensuring consistent and accurate invoice processing.
- Enabled 24×7 Invoice Processing Capability Successfully enabled continuous operation, enhancing responsiveness to suppliers and optimising financial workflows.
- Realised Approximately 120,000 USD Savings Achieved substantial annual cost savings through streamlined processes and reduced operational expenses.
- Reduced Manual Errors By minimising manual data entry, the automation solutions significantly reduced operational errors, leading to increased accuracy and improved financial reporting.
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