SAP Innovation Awards 2024 - 4313 - Western Sugar Cooperative

With 2100+ suppliers, and an ever-increasing invoice and payment volume, Western Sugar Cooperative (Grower Owned) processes were manual and proved to be too time consuming for the staff. The leadership team prioritized better visibility to all invoices in one simple work list, and assurance that the Accounts Payable and Finance team could dramatically improve operational efficiencies. They selected SAP Ariba Central Invoice Management with inbound processing for SAP S/4HANA Cloud, public edition to automate the processing of incoming supplier invoices. Western Sugar achieved a more automated streamlined invoice management process, reduced costs, improved accuracy, enhanced visibility ensuring compliance, and strengthened supplier relationships. Download the Document

PUBLICEntry Pitch DeckWestern Sugar Cooperative (Grower Owned)Richard CaluoriAgribusinessSweet Success Streamlining theInvoice Process
COMPANY NAME:HEADQUARTERS:INDUSTRY:WEBSITE:NUMBER OF EMPLOYEES:Company Information© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2Western Sugar CooperativeDenver, Colorado, USAAgribusinesswww.westernsugar.com1,000+Western Sugar Cooperative, founded in 1901, is made up of over 850 growers and shareholderswho take pride in having a long family history in beet sugar. Some are 4th, or even 5th, generationgrowers who were born and raised around sugar beets. The lifestyle of hard work and long daysinvolved in sugar beet growing has been passed down for the 100+ years Western Sugar hasexisted.We are proud to be made in America by American farmers. Sugar produced by Western Sugarfacilities is found in all 50 states in the United States. We are committed to furthering the well-beingof our growers, employees, customers and the communities we operate in.Environmental best practices help our farmers achieve the following: 37% less water 47% less fossil fuel 80% less herbicide 85% of the farmers in Nebraska and Colorado use conservation tillage, which protects the soiland microbial health Farmers have cut greenhouse gas emissions over 80%, and reduced environment impact ofchemical applications by over 99%
CHALLENGE: SOLUTION: OUTCOME:Sweet Success Streamlining the Invoice Process© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3Faster cycle time and cost savingsbased on $1.33 cost per invoice before, $1.00 after,which will grow over time.33 hours of processingtime saved per month2000 invoices processedefficiently per month25%Western Sugar Cooperative (Grower Owned)332000With 2100+ suppliers, and an ever increasing invoiceand payment volume, processes were manual andproved to be too time consuming for the staff.The processes had no exception or error detecting“system” requiring more time for issues to be fixed.With 40% of the invoices paper-based, the approachwas not only inefficient, but also unsustainable.The leadership team prioritized better visibility to allinvoices in one simple work list, and assurance thatthe Accounts Payable and Finance team coulddramatically improve operational efficiencies, so thatthey could focus on other strategic priorities.SAP Ariba Central Invoice Management with inboundprocessing for SAP S/4HANA Cloud, public edition View all invoices across all channels Automate the processing of incoming supplier invoicesto extract relevant data from scanned or digital invoicedocuments using Optical Character Recognition (OCR) Transform the use of Artificial intelligence (AI) byautomating manual tasks, improving data extractionand validation, and enable actionable decision-making. Drive repetitive and rule-based tasks using SAPIntelligent Robotic Process Automation (SAP iRPA)by designing BOTs and automating.Western Sugar achieved a streamlined invoicemanagement process, reduced costs, improvedaccuracy, enhanced visibility ensuring compliance,and strengthened supplier relationships. Automating tasks including invoice data entry,matching, and approval workflows dramaticallyreducing the time and effort to process invoices. Reduced costs from manual data entry, paper-based processes, and error corrections. Faster invoice turnaround times using SAP AribaCentral Invoice Management + SAP S/4HANACloud to provide integrated financial processesand central control.
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 4With the centralization of the accountspayable on one platform, we are able toconsolidate the payable process at ourdifferent plants. This capability enables theaccounts payable managers at the plantsto track, manage, and pay invoices acrossdifferent plants. This is huge!Richard CaluoriDirector of Corporate Controlling
GLOBAL CHALLENGES BUSINESS CHALLENGESChallenges and Objectives 1 of 2© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5Western Sugar Cooperative works with 2100+ suppliers in its operation, to deliverproducts to local and global businesses utilizing sugar as an ingredient for theirproducts. These customers range from food and beverage manufacturers, toconfectionery companies, and other industries reliant on sugar as a staplecomponent.With suppliers, who are a critical part of the value chain, there are a numberof local and global challenges: Compliance with local regulations and requirements related to invoicing andtax compliance. SAP Ariba Central Invoice Management ensures that invoicingprocesses align with these regulations. Integration with existing Western Sugar systems ensuring seamless dataflow and synchronization between systems is crucial for efficient invoicemanagement. Managing invoices from a diverse set of suppliers across differentgeographical locations can be challenging. SAP Ariba Central InvoiceManagement provides efficient supplier onboarding processes to streamlinecommunication and help resolve any invoicing issues effectively. Data security and privacy to ensure that the invoice management processescomply with local and global data protection regulations, such as the GeneralData Protection Regulation (GDPR). Scalability and performance to address the volume of invoices. SAP AribaCentral Invoice Management can handle large volumes of invoices efficientlyand provide high-performance capabilities.Western Sugar Cooperative business challenges related to invoice managementinclude: Managing and organizing large volumes of invoice data, ensuring data integrity,and implementing robust record-keeping practices in an automated system:SAP Ariba Central Invoice Management and SAP S/4HANA Cloud. Leverage AI to enable historic data (e.g., location, cost center) and recommendhow the information will be coded.o Addressing BOTs capabilities including extracting relevant data, validatingand matching, and tracking status. Ensuring that invoices are accurate, complete, and consistent with theapplicable regulations.o Collecting all required information such as tax identification numbers,product descriptions, quantities, prices, and applicable taxes, which aremanaged and controlled Addressing complex tax regulations requiring compliance and reporting. Inaccurate, inconsistent, or paper invoices can lead to delays in paymentprocessing, which reduces suppliers’ satisfaction and performance.
PROJECT OBJECTIVES WHY SAPChallenges and Objectives 2 of 2© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6The Western Sugar project team deliver an innovative, automated(AI enabled) digital invoice solution based on clear objectives:1. Manage inbound invoices centrally, natively, and seamlessly.2. View all invoices across all channels in one simple work list.3. Reduce payment processing costs both on a per invoice basisand overall.4. Reduce exceptions leading to reduced payment errors.5. Handle increased invoice volume processed efficiently allowingAccounts Payable and Finance staff to be more strategic.6. Address change management including training and keystakeholder contributions throughout the implementation.7. Timely responses and access to the best subject matterexperts to ensure a successful outcome.8. Improve Accounts Payable staff morale by achieving lessmanual clerical work, which helps with employee retention,skills development, and satisfaction.Western Sugar has been working with SAP and 3rd party solutionsfor many years.From experiences the leadership team has worked with a variety ofproducts across different businesses and continents.One of the advantages of SAP Ariba Central Invoice Managementwith inbound processing for SAP S/4HANA Cloud is the drill downand up functions, the integrity of the data as a whole is better thanwhat other 3rd party solutions can offer.The integration capabilities of SAP Ariba Central InvoiceManagement are outstanding, because Western Sugar only has towork with one supplier, which is SAP, and not with two supplierswhich often results in: “that is not what we can solve, please talk tothe other supplier.”The public cloud version makes sure Western Sugar keeps a clearcore, which includes clean master data, clean processes, and cleanintegrations.Also, the team co-innovates directly with the SAP product team toprovide insights and suggests related to the current experience androadmap.