KLP: Switched to Rydoo Accounts Payable, saving time and improveing invoice processes

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

The challenge

KLP's existing invoice management system was convoluted. But as Norway's largest pension company, it 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," explains Olav Bye, Head of Group Purchasing and Invoicing at KLP.

"We also set high standards for user-friendliness. Although KLP only receives around 15,000 invoices a year, many of our approximately 1,000 employees need to process invoices occasionally. Since the invoice team in our finance department can't spend a lot of time on user support, the system must offer all the necessary functionality and be easy to use," he continues.

"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."
— Olav Bye, Head of Group Purchasing and Invoicing, KLP

Easier with a Norwegian supplier

The Rydoo Accounts Payable AI platform not only met KLP's requirements for security and user-friendliness, but was also easy to integrate with SAP. Bye, who has followed the solution since its pilot phase, says its flexibility and the smooth cooperation also contributed to KLP's decision.

"We saw that Rydoo Accounts Payable was on the right track right from our first meetings, and the team has 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," says Bye.

"Having a supplier based in Norway is an advantage in terms of development and problem-solving. Rydoo Accounts Payable isn't governed by external priorities, as is sometimes the case with large international suppliers," he adds.

Bye also highlights future possibilities: "We already use Power BI, and with the open API, we'll be able to drill down in the long term and easily identify where the costs are. For example, we can see whether one supplier has higher prices, how much a supplier's prices increase over time, and so on. We see great potential here, and Rydoo Accounts Payable seems to be at the forefront in this area."

Driven by demanding customers

"It's satisfying to see that our system meets the strict requirements that KLP and similar financial institutions must follow," says Daniel Karlsen, Former Chief Commercial Officer at Rydoo Accounts Payable.

"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.

Karlsen gives an example. KLP needed a flexible approval structure, where an invoice reference, possibly supplemented by supplier-specific learning, determines where an invoice is first sent for approval. There, the cost centre proposed by Rydoo Accounts Payable's AI is approved and, whether it's a department or a project, the workflow routes the invoice to the person with approval authority. This has now been implemented.

"KLP has many costs that cross units or are split across multiple units. The fact that invoices are automatically allocated to the right decision-maker has given us a major boost, increasing both flexibility and efficiency," says Bye.

"The fact that invoices are automatically allocated to the right decision-maker has given us a major boost, increasing both flexibility and efficiency."
— Olav Bye, Head of Group Purchasing and Invoicing, KLP

Essential SAP integration

KLP uses SAP as its financial system. Rydoo Accounts Payable has invested heavily in reliable, flexible APIs that work with both small financial systems and large, complex ERP solutions.

"We have a state-of-the-art cloud connector between SAP and Rydoo Accounts Payable 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's visible in Rydoo Accounts Payable right away," says Bye.

According to Karlsen, this is important for many other financial institutions too: "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 want the kind of functionality Rydoo Accounts Payable can offer."

"For SAP projects, including at KLP, Sopra Steria has been an outstanding integration partner and now also provides standard management for most SAP integrations with Rydoo Accounts Payable. These integrations are also certified on the SAP marketplace, making them official standard integrations. This gives our customers peace of mind and predictability," he adds.

Automated invoice processing

The AI that Rydoo Accounts Payable brings to the invoicing process is highly valued by customers who want a high degree of automation — even full automation — in their AP workflow.

For now, KLP only uses the solution to suggest invoice postings and distribute invoices, as it wants to give approvers the opportunity to add a description of what each invoice relates to.

"We have conservatively estimated savings of NOK 250,000 per year, but the undocumented, indirect savings are higher. Today, just under 70% of postings are done automatically," says Bye.

KLP isn't currently planning to implement full automation, but it's good to know the option exists if it eventually wants to use it for selected suppliers or specific types of invoices. Bye also notes that the new processes and system save KLP time and provide better documentation, as communication between users takes place within Rydoo Accounts Payable.

"There have been times when users asked us why the 'approve' button wasn't working, and it turned out they hadn't selected their cost centre for one of the lines. This can happen when the AI can't predict the posting with sufficient certainty, and the user has to choose from the posting options Rydoo Accounts Payable provides. The fact that some users have become so used to the automation that they forget their own department is proof that Rydoo Accounts Payable does the work for them most of the time," Bye concludes.