In the fast-paced world of manufacturing, companies face numerous challenges in maintaining efficiency, compliance, and profitability, especially when it comes to mergers and acquisitions. One particular manufacturing company experienced significant disruptions following the acquisition of another business, highlighting the complexity of integrating two separate ERP systems—Microsoft Dynamics 365 and NetSuite. Initially, the company managed over 1,500 invoices per month efficiently using an AP automation tool embedded in Dynamics 365. The acquisition, however, introduced a new ERP system, leading to disjointed AP processes and obstructed profitability visibility.
The Problem: Disjointed AP Processes
Challenges of Integrating ERP Systems
After the acquisition, the core issue was the inability to merge the newly acquired business operations into the existing Microsoft Dynamics 365 ERP system seamlessly. When the new business introduced NetSuite, the AP processes became decentralized, causing compliance issues and difficulty maintaining strategic supplier management. This decentralization disrupted what had initially been a streamlined process when the company only used Dynamics 365.
The incompatibility between the two systems resulted in inefficiencies that made it nearly impossible to gain a unified view of monthly expenses and profitability. The complexity of managing two separate AP processes taxed the company’s resources significantly. Not only were the employees forced to juggle multiple platforms, but compliance enforcement also became erratic. This led to an increased risk of human error and delays in invoice processing. The company found it challenging to maintain accurate financial data, thus impacting decision-making capabilities.
Compliance and Visibility Issues
As compliance enforcement weakened due to the disjointed AP processes, regulatory risks increased. AP processes that were once centralized and automated became manual and fragmented. Compliance policies, such as implementing PO processes, unavoidably varied across the different business units, further complicating regulatory adherence. This inconsistency posed significant risks and inefficiencies, making audits a daunting task.
Additionally, there was a considerable loss of visibility across the organization’s financial health, obstructing strategic management of suppliers. Before the integration, the AP team could easily access real-time data via Dynamics 365. However, the introduction of a second ERP system prevented a holistic view of financial transactions, consequently affecting strategic decisions and supplier relationships. Accurate forecasting, budgeting, and reporting were hindered, causing a ripple effect through the supply chain and affecting overall operational efficiency.
The Solution: Rillion’s Integration Platform
Centralized AP Management
Rillion stepped in to offer an external integration platform capable of bridging both ERP systems, thereby providing a much-needed solution to the decentralized AP processes. With Rillion’s platform, the company could maintain separate AP processes and teams while achieving centralized AP management. This external integration did not require altering the existing ERP systems, allowing the company to preserve the integrity of both Dynamics 365 and NetSuite while synchronizing their functionalities.
Centralized visibility was restored, facilitating better strategic supplier management and consolidating financial data to ensure more accurate and timely reports. By implementing the Rillion integration platform, the organization could centralize financial oversight without requiring each business unit to surrender its operational autonomy. The centralized AP management ensured that invoice processing, methodical checks, and supplier payment schedules were streamlined efficiently.
Enhanced Compliance and Cost Efficiency
With centralized AP management in place, the company could standardize compliance policies across all business units, significantly reducing regulatory risks. The automation of routine processes minimized human error and improved the speed and accuracy of invoice processing. Enhanced compliance and cost efficiency translated into a more reliable and transparent financial system, streamlining operations and facilitating better decision-making.