Intelligent Invoice Processing System

Streamlining Operations with Advanced WIP Tracking

Executive Summary

A leading enterprise partnered with Xylity to transform their invoice processing system using Microsoft Fabric service. This case study demonstrates how we revolutionized their work-in-progress (WIP) tracking system, eliminating manual processes and creating a real-time, automated solution that significantly improved operational efficiency.

Client name:

Professional Services

Surface Area:

Mid-market enterprise with national presence

Value:

50,000+ invoices annually

Category:

Finance, Operations, Procurement, Accounts Payable

Business Challenges

The client faced multiple critical challenges in their invoice processing system:

Operational Inefficiencies:

Manual tracking of 4,000+ monthly invoices
Average processing time of 15-20 days per invoice
8+ FTEs dedicated to invoice processing
Multiple handoffs between departments
No centralized tracking system

Visibility Issues:

Lack of real-time status updates
No clear view of bottlenecks
Difficulty in priority management
Limited tracking across departments
Inconsistent status reporting

Process Management:

High error rates in manual entry (15-20%)
Duplicate payments and processing
Delayed vendor payments
Poor audit trail maintenance
Limited performance metrics

Solution Overview

Strategic Approach

Xylity implemented a comprehensive WIP Tracking solution in three phases:

Phase 1: Analysis and Design (6 weeks)

Documented current process flows
Identified bottlenecks and pain points
Designed new workflow architecture
Established KPIs and success metrics

Phase 2: Development (16 weeks)

Built Microsoft Fabric infrastructure
Developed tracking system
Created automated workflows
Implemented reporting dashboards

Phase 3: Deployment (8 weeks)

Conducted user training
Performed parallel processing
Refined workflows
Established monitoring systems

Technology Stack Details

Microsoft Fabric Components:

OneLake for data storage
Data Factory for workflows
Power BI for reporting
Dataflow for processing

Additional Technologies:

SQL Server for transactional data
Power Apps for user interface
Power Automate for workflows
Custom APIs for integration

Technical Architecture

Data Layer:

Centralized data repository in OneLake
Real-time data processing pipeline
Automated data validation
Secure document storage

Processing Layer:

Automated invoice ingestion
Smart routing algorithms
Status tracking system
Exception handling framework

Presentation Layer:

Interactive dashboards
Real-time status updates
Mobile-friendly interface
Role-based access control

Implementation Approach

Process Automation:

Automated invoice capture and routing
Real-time status tracking
Intelligent workflow management
Exception handling system

Tracking Capabilities:

End-to-end visibility
Real-time bottleneck identification
SLA monitoring
Performance analytics

Integration Features:

ERP system integration
Email notification system
Mobile app access
Vendor portal integration

Business Impact

Quantitative Results:

Reduced processing time from 15-20 days to 6 days
Decreased error rates from 15% to 1.5%
Improved on-time payments by 85%
Reduced processing costs by 60%
Increased throughput by 40%

Qualitative Improvements:

Enhanced vendor relationships
Improved team productivity
Better cash flow management
Increased process transparency
Stronger compliance controls

Financial Benefits:

Annual savings of $500,000+ in processing costs
Early payment discounts captured: $150,000
Reduced late payment penalties by 95%
ROI achieved within 8 months

Future Roadmap

Planned enhancements include:

AI-powered invoice processing
Advanced analytics capabilities
Vendor performance scoring
Mobile app enhancements
Predictive analytics integration

Lessons Learned

Thorough process mapping is essential
User training is critical for adoption
Phased rollout reduces disruption
Regular stakeholder communication is vital
Continuous monitoring enables optimization

Best Practices Established

Standardized invoice processing workflows
Clear escalation procedures
Regular performance monitoring
Documented exception handling
Continuous improvement process