Distributor ALSO says it is now using Celonis Execution Management Systems (EMS) for Accounts Payable. The App aims optimise cash flow, maximizes cash discounts, minimizes late payment penalties and frees up working capital.
ALSO, which is active in 23 European countries with total net sales of nearly €11bn, processes millions of invoices from suppliers annually. The new Accounts Payable Execution App works by using AI to identify the causes of sub-optimal lead time in its invoice payment processes and then recommend or automate immediate remedial action, it says. The application aims to support the ALSO team in creating streamlined, automated operational expense management, optimized working capital and improved overall profitability.
The Celonis Execution App for Accounts Payable allows ALSO to take full advantage of valuable cash discounts offered by many suppliers for early payment. As well as maximizing these cash discounts, the Celonis application times invoice payments to match due dates. Eliminating late payment fees for overdue invoices and ensuring that invoices are paid on agreed dates frees up substantial amounts of liquidity for new business opportunities, it says.
Gustavo Möller-Hergt (pictured), CEO of ALSO explains: "Our supply business requires a great deal of precision to ensure profitability. The margins, particularly where hardware is concerned, can be very thin - and avoidable process errors quickly eat into profits. This is why closing any execution gaps in every area of our business is crucial to us. We have been working with Celonis since 2019 and appreciate the impact its software has on execution optimization. This latest step to apply the new Celonis Execution Application for Accounts Payable in our finance department helps us eradicate the occasions when something does not happen in time."