Subject: Recommendations for Optimizing Fi-Fintech's Accounts Payable Function

Project Scope Overview:

Fi-Fintech's AP function needs a transformative vision to bring it in line with industry-leading standards. The objective is to re-
engineer the AP processes, ensuring they are efficient, compliant, and capable of supporting Fi-Fintech’s ambitious growth plans.
This transformation includes the adoption of process and structural redesign involving automation with the help of artificial
intelligence to streamline routine tasks, allowing the AP team to focus on judgment-based activities. This memo provides a high-
level overview of suggested optimizations that could be implemented, based on the inefficiencies identified in Fi-Fintech’s AP
function.

Proposed scope of engagement:

Based on my analysis, we could undertake the following actions to optimize Fi-Fintech's AP function:
• Assess Current State: Conduct a comprehensive assessment of the current state of Fi-Fintech’s AP function – the inefficiencies
presented provide a helpful starting point for us to work from.
• Diagnose Core Inefficiencies: Through working sessions with Fi-Fintech, define Fi-Fintech’s target operating model and identify gaps
based on the current maturity of their existing AP processes and controls. This diagnosis is done by reference to benchmarking against
industry peers and Fi-Fintech’s target operating model.
• Recommend and Design To-Be Process: Recommend and design a future-state process that enhances efficiency and compliance based
on Fi-Fintech’s target operating model. Develop a high-level road map based on specific initiatives including:
o Leveraging tools such as automation, artificial intelligence, and Optical Character Recognition (OCR).
o Implementing a Minimum Viable Product (MVP) approach to implementing the proposed solution.
o Leveraging organizational change management (OCM) tools to support organizational re-design and adoption.
These solutions will be presented to key stakeholders in the business and we will conduct an engagement session to present and
validate the high-level road map.
• Deliver Solution: Once the road map has been formalized, we will work with key stakeholders to implement the solutions,
including through:
o Defining key steps for executing on each initiative
o Defining targets for implementation
o Developing documentation and project charters for each initiative
o Facilitating training with staff where relevant
 At the end of the engagement, a report will be presented outlining the total benefits realized based on comparison to initial budgeted
costs, expected benefits, and proposed timelines.

Suggested Optimizations:
Based on my analysis of the inefficiencies identified in the AP processes, I’ve proposed a high-level overview of optimizations that we
might suggest as part of the road map for Fi-Fintech.

Inefficiencies in AP Function identified by Fi-Fintech Potential Solutions / Optimizations

Invoice Receipt • Centralized Invoice Receipt: Establish a centralized
• Decentralized receipt channels make tracking invoices system or platform for receiving invoices from various
challenging. channels, making it easier to track and manage incoming
• A high percentage of paper invoices increases the risk of invoices. AI can automatically categorize invoices based
document loss and necessitates substantial sorting on their content, such as vendor, expense type, and
efforts. payment terms, making it easier to manage and
• The client deals with a significant number of low-volume prioritize invoices.
suppliers. • Digital Invoice Handling: Encourage suppliers to submit
invoices electronically, reducing the reliance on paper
invoices and the risk of document loss.
• Supplier Portal: Create a supplier portal for low-volume
suppliers to submit invoices electronically, streamlining
the invoicing process.

Data Extraction • High-Quality Scanning: Invest in high-quality scanning

• Poor scanning quality negatively impacts data capture equipment to improve the clarity and quality of scanned
rates. invoices, leading to higher data capture rates.
• Not all OCR technology can handle various languages • Multilingual OCR: Implement OCR technology capable
and alphabets. of handling various languages and alphabets to ensure
• Low OCR capture rates result in an increased manual accurate data extraction from invoices in different
workload. languages.
Invoice Processing • PO Improvement: Work on improving the quality of
• Poor-quality purchase orders (POs) hinder direct 2/3- purchase orders (POs) to facilitate easier matching with
way matching of invoices. invoices and reduce discrepancies.
• Buyers not registering goods receipts (GR) leads to • Goods Receipts (GR) Automation: Implement systems
delays in invoice posting. and AI processes to automate the registration of goods
• Multiple ERP systems require different Invoice-to-Pay receipts to expedite invoice posting.
(I2P) processes and interfaces. • Standardize I2P Processes: Streamline Invoice-to-Pay
• Issues stemming from poor master data quality, such as (I2P) processes across multiple ERP systems to reduce
duplicate postings/payments and incorrect rejections, complexity and improve efficiency.
hinder efficiency. • Master Data Quality: Address master data quality issues
• Ensuring legal compliance of invoices presents an to prevent duplicate postings/payments and incorrect
additional challenge. rejections. AI can flag duplicate invoices, reducing the
risk of overpayments and preventing errors caused by
manual oversight.
• Legal Compliance Checks: AI can be used to implement
automated checks to ensure the legal compliance of
invoices, reducing the risk of non-compliance.

Invoice Approval • Workflow Automation: Use workflow automation tools

• Limited workflow capabilities drive up cycle times and to create efficient approval processes, reducing cycle
reduce transparency in the approval process. times and improving transparency. AI can streamline the
• Low collector efficiency is observed due to a lack of approval process by routing invoices to the appropriate
prioritization in collection activities. individuals based on predefined rules, reducing delays
• Visibility into the actions of buyers/approvers during the and bottlenecks.
approval process is lacking. • Collector Prioritization: Leverage AI to implement
prioritization algorithms for collection activities to
improve collector efficiency.
 • Audit Trails: Establish systems to track and document
the actions of buyers and approvers during the approval
process, enhancing visibility and accountability.

Payments • Consolidate E-Banking Systems: Consider consolidating

• Managing multiple e-banking systems is resource- multiple e-banking systems into a single platform to
intensive. streamline payment management.
• Manual reviews of payment processes introduce delays • Automated Payment Reviews: Implement automated
and potential errors. reviews of payment processes to reduce manual efforts
• Obtaining a comprehensive status overview of payments and errors in the payment process.
is challenging. • Payment Dashboards: Create dashboards or reporting
tools that provide a comprehensive overview of
payment statuses, making it easier to track and manage
payments.