TUIfly opted for a paperless office in the accounting division partnering with the Latvian specialist Lattelecom BPO.

In January 2010 TUIfly selected Lattelecom BPO (Latvia, Riga) to introduce a new generation of invoice handling  for TUIfly: a paperless office for all incoming invoices and combined with an electronic invoice checking system within their cost control solution airpas. An integrated workflow solution will ensure the release and confirmation process is handled properly.

Reinhold Heinz, Head of Accounting and Finance, described the motivation, expectations, decision and outcome of this project for the benefit of TUIfly:

Motivation
“Almost 200 people at TUIfly are involved in receiving, checking and confirming incoming invoices. Currently almost all invoices are handled in paper form - except electronic (EDI) invoices processed by airpas. Our goal is to streamline the process, increase transparency and reduce workload. The project will increase the quality of the overall process tremendously.”

Expectation
“Today information about the status of a paper invoice in the overall checking and approval process is not available when required. Furthermore, there is no guarantee for avoiding double payments.  If there was a workflow solution in place, similar to what we are implementing now with our partner Lattelecom BPO, double payments can be basically avoided.

One major requirement for the project was to utilize existing interfaces from source systems linked to our accounting system in order to avoid process changes, costs and additional risks, for example.”

Decision
“The decision to introduce the scanning process of handling incoming invoices at TUIfly was taken at a very early stage. Evaluating today’s market one will find that there are plenty of scanning solution providers, offering various services.

No other supplier is in a position to provide electronic data which can be used within airpas for automatic invoice checking and processing. The question arose as to whether there is a possibility to capture the flight-related information which is included in the annexes and appendices of paper invoices with the same technology. The answer is yes! As TUIfly has used airpas as invoice checking system for costs right from the start it was decided to carefully evaluate a process that  airBaltic  had introduced. This introduction included a partnership, starting in late 2008, where  Lattelecom BPO and Airpas Aviation developed a new model for paperless invoice checking. The unique data capture solution of Lattelecom BPO offers the ability to provide paper invoice information as IATA XML files to airpas. This gave Lattelecom an added value, which is, combined with airpas, a uniquely new solution to the market.

In conclusion, I would like to emphasize the fact that within a short period of time the added value of Lattelecom BPO has paid off. As of now, there are no specialized scanning services for our target group in the aviation market. The expertise and technical knowledge of Lattelecom BPO are invaluable to the airline industry. “

Outcome
“For the main benefits I would like to summarize the experience within the three target areas:

Cost reduction:-
Currently, most airlines are dependent on the electronic data provided by their suppliers. Now, if a supplier decides to make any changes to his electronic system, the airline customer must adopt their processes by amending the interface, resulting in additional expenses.

 
With the new scanning process implemented we are in the strong position to negotiate cost participation with the supplier as the airline is no longer dependent on the electronic data provided.

Time reduction:-
We have estimated 180-200 users are involved in and are affected by the new processes in their respective areas. In the future, an employee can display the invoice image on his screen whenever required. We can adhere to very short payment terms in order to more fully obtain discounts. This avoids unnecessary time and increases discount potential.

Avoid double payments:-
Double payments are not uncommon and airlines can easily identify a median range that averages in a 6-digits Euro amount for duplicate payments that have been paid just within a few years! Almost all of them can be avoided from the moment a workflow solution is in place. This result derived from the new solution and is key to what TUIfly is relying on.

In regard to the cost-effective scanning and workflow solution, besides the mentioned benefits in cost reduction, it is not just about expense cuts, but it encompasses a total quality project and management initiative, plain and simple.

TUIfly is ready for take-off!”