|Emmen, Switzerland, Munich, Germany, and New York City, USA, 20. October 2020
|JOINT MEDIA RELEASE
ALSO goes live with AI-enhanced Celonis Execution Application for Accounts Payable
Celonis, the global leader in Execution Management Systems (EMS) and the Swiss-headquartered technology provider ALSO today announced the successful go live of the Celonis Execution Application for Accounts Payable. The App optimizes cash flow, maximizes cash discounts, minimizes late payment penalties and frees up working capital. It is part of the new Celonis Execution Management System, enabling businesses to optimize execution capacity and close execution gaps.
ALSO, which is active in 23 European countries with total net sales of nearly 11 billion euros, processes millions of invoices from suppliers annually. The new Accounts Payable Execution App from Celonis enables ALSO to optimize its financial performance 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. The application supports 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.
Gustavo Möller-Hergt, CEO of ALSO Holding AG (SIX: ALSN), 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."
Optimizing execution capacity, eliminating execution gaps
Most organizations suffer from under-performance in their execution capacity, the optimum level of performance they can achieve with available time and resources. This difference between optimal execution capacity and average achievement occurs because business processes are forced to run across rigid and fragmented IT landscapes, resulting in execution gaps - errors, inefficiencies, and delays that constrain performance.
Celonis' Execution Management System helps companies in every industry maximize execution capacity. The system leverages process mining technology to extract data in real-time from source systems and identify the most impactful execution gaps. Celonis Execution Applications are role-based apps for specific lines of business that apply machine learning and best-practice knowledge to recommend the right course of action to close gaps. They prioritize work by automating steps across systems and deploying the right people to remove gaps, according to strategic outcomes determined by business management.
A smarter way to approach Accounts Payable execution
At ALSO, the Celonis Execution Application for Accounts Payable enables finance leadership to plan, set and operate a strategy for the daily processing of invoices. Automatic prioritization of invoices and prescriptive guidance on the next best actions empower employees to achieve key business objectives.
The Application leverages Celonis' know-how from more than 2,000 deployments. It collects data from multiple systems that the accounts payable team works with and gives everyone a common baseline. The Celonis software is constantly on the look-out for potential issues and recommends ways to accelerate invoice processing. In addition, it enables ALSO's Accounts Payable team to work more productively and smartly by prioritizing payments instead of working through invoices in sequence and recommending actions according to business impact. By harmonizing strategy and execution as well as importing data from multiple systems to give everyone a common baseline, the entire finance team works off the same data and can make collective decisions.
ALSO is deploying the Celonis Accounts Payable app for specific use cases to automate and optimize its SAP-based processes, which have been jointly developed by ALSO and Celonis experts. For example, Celonis automatically analyzes all the invoices due, compares the due date and the next payment run, and flags invoices to be paid in time to qualify for any discount. Another action is to optimize the payment date of invoices: they are still paid on time but paying a week earlier than necessary reduces working capital potentially available for other business opportunities. For companies operating on very tight margins, both approaches offer significant advantages and provide valuable cash-at-hand liquidity.
Hala Zeine, Chief Product Officer at Celonis, commented: "ALSO's ambitions to achieve process excellence are a perfect match for Celonis' new Accounts Payable Execution Application, with each optimization recommendation by the app impacting the bottom line in an immediate and purpose-driven way. And this applies to any other business environment where there is a high volume of purchases from suppliers. Typically, automation in Accounts Payable teams lacks the granularity necessary to remove execution gaps. The systems in place just cannot see the interdependencies with enough detail to spot problems ahead, let alone recommend ways to avoid them. Celonis' new Execution App for Accounts Payable sees the interdependencies, automates smarter actions, or recommends manual intervention when that's the best way to optimize cash flow. This is a great example of what we mean when we talk about closing execution gaps."
Direct link to media release: https://www2.also.com/press/20201020en.pdf
Contact person ALSO Holding AG:
Senior Vice President Communication
Telefon: +49 151 61266047
E-Mail: [email protected]
ALSO Holding AG (ALSN.SW) (Emmen/Switzerland) brings providers and buyers of the ICT industry together. ALSO offer more than 660 vendors of hardware, software and IT-services access to over 110 000 buyers, who can call a broad spectrum of other customized services in the logistics, finance, and IT services sectors, as well as traditional distribution services. From the development of complex IT landscapes, the provision and maintenance of hardware and software, right through to the return, reconditioning and remarketing of IT hardware, ALSO offers all services as a one-stop shop. ALSO is represented in 23 European countries and generates total net sales of approximately 10.7 billion euros with around 4 000 employees in the fiscal year 2019. The principal shareholder of ALSO Holding AG is the Droege Group, Düsseldorf, Germany. Further information is available at https://also.com
Droege Group (founded in 1988) is an independent advisory and investment company under full family ownership. The company acts as a specialist for tailor-made transformation programs aiming to enhance corporate value. Droege Group combines its corporate family-run structure and capital strength into a family- equity business model. The group carries out direct investments with its own equity in corporate spin-offs and medium-sized companies in «special situations». With the guiding principle «execution - following the rules of art», the group is a pioneer in execution-oriented corporate development. Droege Group follows a focused investment strategy based on current megatrends (knowledge, connectivity, prevention, demography, specialization, future work, shopping 4.0). Enthusiasm for quality, innovation and speed determines the company's actions. In recent years Droege Group has successfully positioned itself in domestic and international markets and operates in 30 countries. More information: https://droege-group.com
Celonis believes that every company can unlock their full execution capacity. Powered by its market-leading process mining core, the Celonis Execution Management System provides a set of instruments, applications, and developer studio, and platform capabilities for business executives and users. The Celonis EMS offerings help companies manage every facet of execution management from analytics, to strategy and planning, management, actions and automations. Celonis has thousands of customers including ABB, AstraZeneca, Bosch, Coca Cola, Citibank, Dell, GSK, John Deere, L'Oreal, Siemens, Uber, Vodafone and Whirlpool. Celonis is headquartered in Munich, Germany and New York City, USA and has 15 offices worldwide.