Video: Manufacturer Saves $1 Million Yearly in AP

BMHC
ECM Offering Saves Estimated $1 Million per Year
Saving an estimated $1 million annually versus reverting to paper-based processes, Building Materials Holding Corporation (BMHC) processes more than 600,000 invoices per year with 10 accounts payable (AP) personnel. Further leveraging its OnBase solution, BMHC uses OnBase enterprise-wide, including the human resources, legal and transportation departments.

A holding company providing capital, management and administrative resources, BMHC is a Fortune 1000 company with sales in excess of $2 billion. When a legacy imaging system required an extensive and costly upgrade, the company began looking for a new solution that required less custom coding to integrate systems and could automate business processes.

The new solution needed to support the workflows that already existed and drive new initiatives that the legacy system could not. BMHC chose Hyland Software's OnBase enterprise content management (ECM) suite because of its extensive native functionality. Because Hyland offers both premises-based and hosted document management and workflow solutions, BMHC was able to choose and implement the SysTrust®-certified hosted offering, OnBase OnLine. With the online option, the project could go forward despite the impending move of the company's data center, and it could easily accommodate every location.

AP Solution Connects 70 Locations and Eases Reconciliation Challenges
AP invoices are received centrally at BMHC's Administrative Service Center, while purchase orders (POs) are processed at each location, making reconciliation challenging. Automating the previous process, both paper and electronic invoices are imported into OnBase OnLine to its SAS 70-certified data center. Saving the data in OnBase also prompts an import of the invoice data into Oracle® Financials. A daily invoice report is published to the company's intranet and available to users in 70 locations for reconciliation of POs with the Oracle data. Users simply click a link in the report for an OnBase invoice image or to request a change should they find a discrepancy.

In total, the AP department processes an average of 2,000 invoices per day with only 10 personnel. In a worst-case scenario of going back to paper processing, BMHC estimates that the company would spend an extra $1 million a year.

Online Solution Indispensable Enterprise-wide
BMHC has leveraged its investment from OnBase Authorized Solution Provider Integra Information Technologies by implementing OnBase in Human Resources and the Transportation departments. OnBase is also being implemented in the Legal department so that contracts will be visible all over the country.