KLP: Switched to SEMINE - saved time and improved invoice processes

KLP wanted an efficient and secure accounts payable (AP) automation system that was easy to use and integrated seamlessly with SAP. SEMINE provided them with artificial intelligence (AI), automated invoice processing, and a more streamlined and secure AP workflow – resulting in at least a quarter of a million Norwegian kroner in savings.

KLP faced a challenge: Their existing invoice management system was convoluted. However, as Norway’s largest pension company, they couldn’t choose just any IT system – particularly when it came to cloud-based solutions.

– As a financial institution, we are subject to strict regulations. We must perform controls and provide documentation on numerous aspects such as security, privacy, and subcontractors, says Olav Bye, Head of Group Purchasing and Invoicing at KLP.

– Additionally, we set high standards for user-friendliness. Although KLP only receives around 15,000 invoices annually, many of our approximately one thousand employees need to process invoices occasionally.

– Since our invoice team in the finance department cannot spend a lot of time on user support, the system must offer all the necessary functionality and be easy to use, continues Bye.

Easier with a Norwegian supplier

The AI-platform SEMINE not only met the requirements for security and user-friendliness, it was also easy to integrate the platform with SAP (more on this later). However, Bye, who has followed Semine since it was still in the pilot phase, says that the flexibility and smooth cooperation also contributed to KLP landing on SEMINE. 

–  We saw that Semine was on the right track right from our first meetings, and they have always been receptive to input. We also have a good relationship with our account manager and the customer service team. That’s very helpful if something goes wrong, he says.

–  Having a Norwegian supplier based in Norway is an advantage in terms of development and problem-solving. Semine is not governed by external priorities, as is sometimes the case with large international suppliers, says Bye.

–  We already use PowerBI, and with the open API, we will be able to drill down in the long term and easily identify where the costs are. For example, we can see if one supplier has higher prices, how much a supplier’s prices increase over time, and so on. We see great potential here, and Semine seem to be at the forefront in this area.

Stimulated by demanding customers

– For oss i Semine er det tilfredsstillende å se at løsningen innfrir de strenge kravene som KLP og tilsvarende finansinstitusjoner er underlagt, sier Daniel Karlsen, kommersielle direktør i Semine.

– It’s satisfying to see that our system meets the strict requirements that KLP and similar financial institutions must follow, says Daniel Karlsen, Chief Commercial Officer at Semine.

–  We’ve been working with KLP for a long time now, and they have always provided a wealth of specific suggestions that have challenged us to rethink the functionality of our product, he continues.

As an example, Karlsen explains that KLP needed a flexible approval structure where an invoice reference, possibly supplemented by supplier-specific learning, determines where invoices are first sent for approval. There, the cost centre proposed by SEMINE’s artificial intelligence is approved, and regardless of whether it is a department or a project, the workflow directs the invoice to the person who has approval authority. This has now been implemented.

KLP has many costs that cross units or are distributed across multiple units. The fact that the invoice is automatically allocated to the right decision-maker has given us a major boost that has increased both flexibility and efficiency,” says Bye.

Essential SAP integration

KLP uses SAP as its financial system. Semine has invested heavily in reliable and flexible APIs that work with both small financial systems and large, complicated ERP solutions, and Bye is very pleased with how well the systems communicate with each other and how quickly everything fell into place:

–  We have a state-of-the-art cloud connector between SAP and SEMINE that works very well, everything flows seamlessly and updates happen instantly.

For example, if we make a change to a supplier in the financial system or set up a new cost centre, it will be visible in SEMINE right away,” says Bye.

Karlsen has noticed that this was also an important factor for many other financial institutions that have chosen SEMINE.

–  We now have several implementation partners who can deliver robust integration solutions, and we see that this is of paramount importance for many customers who request solutions that have the kind of functionality Semine can offer,” says Karlsen.

–  For SAP projects, including at KLP, Sopra Steria has been an outstanding integration partner that now also delivers standard management for most SAP integrations with SEMINE. 

–  These integrations are also certified on the SAP marketplace, making them official standard integrations. This provides our customers with peace of mind and predictability, he says.

READ MORE: Easy integration with the leading financial systems

Automated Invoice Processing

The AI that SEMINE brings to the invoicing process is highly valued among many of SEMINE’s customers who want a high degree of automation – even full automation – in their AP workflow. Bye says that KLP has so far achieved a high level of automation, although they have not yet taken advantage of all the possibilities the system offers.

Currently, they only use the solution to suggest invoice posting and distribute invoices, as they want to give invoice approvers the opportunity to add a description of what the invoice pertains to.

- We have conservatively estimated savings of 250,000 kroner per year, but undocumented, indirect savings are higher. Today, just under 70% of the posting is done automatically, says Bye.

KLP is not currently planning to implement full automation, but Bye says it is good to know that the opportunity exists if they eventually want to use it for selected suppliers or specific types of invoices. He also notes that the processes and the new system save KLP time and provide better documentation by allowing communication between users to take place within SEMINE.

READ MORE: Here’s why AI can make finance departments even more efficient

– There have been times when we received inquiries from users who wondered why the ‘approve’ button wasn’t working, and it turned out that they hadn’t selected their cost center for one of the lines. This can happen when the AI is unable to predict the posting with sufficient certainty, and the user must actively choose from the posting options provided by SEMINE. The fact that some users have become so accustomed to the automation that they forget their own department is proof that SEMINE does the work for them most of the time, concludes Bye.