Manufacturing
Accounts payable that closes itself
A $4B manufacturer processing 1.2 million supplier invoices a year across three ERPs, with a 26-person team and a month-end close that regularly ran past day ten.
Before and after
BeforeAfter$0.07
Cost per document, from $2.40
71%
Reduction in close cycle time
$2.6M
Annual run-rate saving
0
Headcount reductions — team redeployed
The challenge
What they were dealing with
Invoices arrived as PDFs, EDI feeds and scanned paper across three business units, each on a different ERP instance with different tolerance rules. Matching was manual, exceptions were emailed, and nobody could say at any given moment how much unposted liability was sitting in a shared mailbox.
Services involved
What we did
- 01
Measured the real baseline first: 1.2M documents, $2.40 average processing cost, 14% exception rate, 9.4-day average cycle
- 02
Built a single extraction and matching layer in front of all three ERPs rather than three separate automations
- 03
Gave agents authority to clear exceptions inside agreed price and quantity tolerances, with everything above threshold routed to a named approver
- 04
Ran twelve weeks in parallel with the manual process until reconciliation agreed to the cent
- 05
Handed the exception dashboard to the shared services team, who now tune tolerances themselves
The outcome
94.2% straight-through processing
Measured against the pre-engagement baseline and re-verified at the 90-day review.
- $0.07 — Cost per document, from $2.40
- 71% — Reduction in close cycle time
- $2.6M — Annual run-rate saving
- 0 — Headcount reductions — team redeployed
The number I care about is not the 94%. It is that we stopped having the same conversation about unposted liability every month.
More work
Other engagements worth reading.
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