Case Study

Wholesale & Retail

Financial Shared Services Center of YUM China
Reaches a New Level with ABBYY FlexiCapture®
Customer Overview

Name
YUM! Restaurants (China)

Location
Shanghai, China

Industry

YUM! Restaurants (China) is the Shanghai-based Chinese division of theinternational company YUM! Brands, Inc. It is the leading retail developerin the country, with more than 7,100 restaurants in over 1,100 cities —chief among them company-owned KFCs and Pizza Huts. KFC® was thefirst quick-service restaurant chain to enter China in 1987, and is currentlythe number one Western QSR brand in China; Pizza Hut® introduced pizza
and Western-style dining to China, and is nowadays the leading Westerncasual dining brand in the country. The growth of YUM brands in China isdriven by their highly experienced local team, a country-wide distribution
system and ultimate dedication to innovation and product quality thatprovides the basis of the brands’ strategy.

Wholesale & Retail

Challenge

WebAs a large enterprise, YUM faces the issue of extensive document flow on a daily basis. The
processed documents are chiefly made up of invoices, including VAT and shipping invoices.

yum.com

Challenge
Process more than 20,000 invoices ofdifferent types per day

Solution
Implementation of a solution based on
ABBYY FlexiCapture Distributed.

Results• The volume of invoices processed
per day increased by 4 times.
• The workforce involved decreased by
9 times.
• Significant improvement in thequality and accuracy of extracted
data.

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Previously, all the papers used to be processed manually by financial department employees
in various YUM offices all over China. The entered data were matched to a contract inthe ERP system, which determined whether the payment had been made. Manual input
caused numerous mistakes; moreover, due to the large quantities of invoices from different
providers the company could remit payments only after manually matching invoices andcontracts; this obviously lowered the speed of document processing.
To reduce the amount of manual work and raise efficiency and accuracy, the company
made the decision to centralize their financial processes and automate the extraction of
information from invoices by using data capture technologies.

SolutionLike the majority of modern companies with a wide network of branch offices and a large
number of separate divisions, YUM opted to switch to the Financial Shared Service Center(FSSC) model. Delegating support processes to a centralized back office allows to cut
operational costs while increasing the quality of results. For automating business processes
at the FSSC, YUM decided to implement a data capture solution.

ABBYY Solution PartnerຟӔ

After trying out several data capture solutions, YUM chose ABBYY FlexiCapture, presentedby ABBYY country partner in China — Shanghai Taibi Information Technology LTD. The
project was implemented within 1 year, which included template development and testing,integration with financial system, the POC stage for small batch processing and, finally,full-cycle processing.
Today, the documents are scanned in branch offices with flatbed or high-speed portablescanners, and the resulting images are transferred through FTP into ABBYY FlexiCapture
deployed in FSSC. The software automatically classifies the scanned invoices (VAT orshipping type) and applies corresponding templates to them. The relevant data are extractedand exported to the custom financial system developed by the company (ERP) with the helpof a special module. At the same time the invoice’s PO number is matched to a contract
in the YUM ERP system, allowing the financial department to double-check the payments.

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ABBYY FlexiCapture has made this step faster and more reliable, with automatic recognition
quality being higher than manual data entry. To increase the accuracy for critical data fields
even further, YUM collaborated with Taibi Information Technology technical consultants tointroduce automatic validation rules and additional methods of verifying and matching data.
YUM found the FSSC model of workflow organization to be the most efficient. ABBYY
FlexiCapture collects and automatically sends the data to the joint processing center, whereoperators perform the verification. Thus, the FSSC not only helps to streamline the working
process, but also saves time for documents delivery and minimizes mistakes thanks to thestandardization and simplification of invoice processing.
At the first stage after the launch the quantity of documents processed by the system was
5,000–8,000 per day, later the volume grew to more than 20,000 per day. In the long term
the company plans to scale the system to process even larger volumes.

“A rise in workforce expenses and data accuracy requirements
made us switch to new technologies. However, having tried out
different data recognition solutions, we found out that there wasno opportunity to achieve the necessary accuracy level while
using them. Then we opted for the international brand ABBYY
and its data capture solution.
Now, almost a year after the project’s deployment andoptimization the quantity of invoices that are processed on afully automatic basis (that is, there are no mistakes in data
recognition, and invoices do not go through a verification stage
involving an operator) has risen to almost 70%. The results haveexceeded all our expectations. At the present moment we arecompletely satisfied with the stability of the software and thehigh efficiency of recognition. ”YUM Project Manager John Zhou

About ABBYY
ABBYY is a leading global providerof technologies and solutions that
help businesses effectively action
information.

ABBYY 3A
Asia, Baltic, Middle East, South America, Africa
P.O. Box #32, Moscow, 127273, Russia
Phone: +7 (495) 783 3700
Fax: +7 (495) 783 2663
sales_3a@abbyy.com

Results
Before the project was launched, there had been 16 offices around China, and more than
900 people had been engaged in document processing and data input. Since ABBYY
FlexiCapture was deployed, the same amount of work has been done by less than 100
people in the FSSC.
Moreover, ABBYY software has enabled the company to release the workforce, significantly
improve the quality and accuracy of the extracted data and raise the effectiveness ofbusiness processes.

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Other product and company names mentioned herein may be trademarks and/or registered trademarks of their respective owners
and are hereby recognized. Part#7838e

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