Clas Ohlson Automates AP with Palette
Hardware store chain Clas Ohlson struggled with an increasing volumes of supplier invoices to process as well as the matching of invoices, purchase orders and goods receipts. The company saw an opportunity to implement an AP automation solution when they changed their ERP to Microsoft Dynamics AX. It marked the beginning of an automation journey.
Jan Skarner, Head of Business Navigation at Clas Ohlson says:
“Palette’s AP automation is a timesaver for us and with the integration of Dynamics AX, we know with certainty that everything works as it is supposed to”
Clas Ohlson is one of Sweden’s most well known hardware store chains and has 200 stores in Sweden, Finland, Norway, Germany and England. The company has had an impressive growth rate driven in part by increased e-commerce revenue.
The company took a big step towards a more modern finance system by replacing its 30 year old ERP, but strong invoice management functionality was missing. Clas Ohlson was looking for a solution that would allow the company to automate new processes on the new ERP over time. After careful evaluation, Palette was selected.
” We had high expectations and they have certainly been met,” says Jan Skarner.
A gradual rollout produces best possible results
In 2016, Clas Ohlson began with a small-scale rollout of Palette in England. Lessons could be applied for even smoother implementation when Norway, Finland and Germany followed in 2017. The largest and most comprehensive part was done in May 2018 when Clas Ohlson linked to the Swedish company as well.
-Palette is an incredibly simple and user-friendly system, both to work in and to operate. You become “superuser” in no time. We started the project and planning together with Palette’s staff the first two months before we went live in England. The rest we have been able to handle on our own because the system is so easy to understand and user-friendly, ”says Jan Skarner.
Successful 3-way integration between Palette, procurement and Dynamics
Clas Ohlson uses Microsoft AX to procure the products that are directly linked to its business. This system includes a Palette integration for sending and receiving data. According to Jan Skarner, one of the biggest advantages of the entire automation journey is the seamless flow between systems.
“For the procurement invoices, we have an integration solution that is completely phenomenal and which makes it impossible to accidentally pay the wrong supplier or the wrong amount. It became even better than we could have imagined,” says Jan Skarner.
Matching of contracts and indirect procurement
In the spring of 2019, Clas Ohlson plans to expand its Palette functionality by optimizing the process for internal purchases.
Jan Skarner continues:
“The biggest benefit of automating these flows will be the improved structure among indirect procurements. Our highest priority is better control, and to be able to match contracts with purchase orders is the cherry on top.”
Clas Ohlson was founded in 1918 in Dalarna, Sweden and has over 200 stores in Sweden, Norway, Finland, Germany and England. The company has 5000 employees and revenues of SEK 8 billion.
Solutions & functions
Eliminate data entry, have visibility into invoice status, automate the matching of purchase orders, goods receipts and recurring contracts. Approve invoices with one click on desktop, tablet or smartphone.
Allow your agreement and contract management to become easier and more enjoyable. Match recurring invoices automatically and receive reminders when contracts are to be terminated or renewed.
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