Success story
Mydin Mohamed Holdings BerhadIndustry• Retail & WholesaleSolutions• OpenText™ Vendor Invoice Management forSAP® Solutions• OpenText™ Invoice Capture Center

Partner Support• Delaware ConsultingResults
Reached 95% invoiceprocessing automation
Required 50% fewer staff for invoiceprocessing role
Saved 36,000 hours per year tospend on more value-added tasks
Reduced staff turnover

Leading Malaysian retail chain digitallytransforms accounts payable operations

Mydin Mohamed Holdings Berhad (MYDIN) leverages OpenText for significant
time savings and efficiencies by automating 95% of invoicing workflow“The powerful combination of OpenText Vendor Invoice
Management for SAP Solutions and OpenText Invoice Capture
Center has effectively transformed MYDIN’s entire invoiceprocess supply chain and our supplier relationship management.
The number of staff required to manage invoice processing is50 percent lower.”
Malik Murad Ali

IT Director
MYDIN

Leading Malaysian retail chain digitally transforms accounts payable operations

With 78 retail stores in Malaysia, including malls and hypermarkets,
emporiums, convenience stores, franchised outlets, high-end
groceries, a deli restaurant and a recent foray into online shopping,
MYDIN is a household name.
In the face of an increasingly tough retail environment, including
domestic retail spending conditions and international competition, thecompany looked at ways technology could help it drive efficiency andlower costs to achieve better margins.
When it turned to OpenText to address a specific requirement to digitize
and reduce the cost of its existing manual vendor invoice management
process, it gained more than originally anticipated.
MYDIN receives around 2,000 invoices per day and well over half amillion per year. Previously, these invoices were received at the storesand then couriered to their headquarters in Subang Jaya for processing.
These invoices were sorted manually by payment dates and terms, thenprocessed before being filed and stored. When there were queries
about certain invoices, employees had to refer to this manual filingsystem. All of this was completed by approximately 125 people processing invoices, entering data and managing the paperwork pertaining
to Accounts Payable.
“With a reliance on human input and so many duplicate touchpoints,we understandably experienced a lot of errors despite the skilled
and attentive nature of our finance professionals. Not to mention
how mundane this work was for our skilled professionals and costly
for our business,” explained Malik Murad Ali, IT director at MYDIN.

With MYDIN’s plans to keep growing, this problem was only going toincrease. They would already soon run out of office space with paper
everywhere, especially when its head of finance estimated they wouldneed seven new people to manage the invoices for each new hypermarket opened.
Malik was tasked with finding a solution that would support the businessto grow at scale. He reviewed Accounts Payable automation solutions
available in the market and as an SAP® customer, sought to find a truly
integrated solution that would transform the process from end-to-end.
He identified OpenText, a long-standing SAP partner, which offered acombined and unique solution, OpenText™ Vendor Invoice Management(VIM) for SAP® Solutions and OpenText™ Invoice Capture Center (ICC).
For the implementation of the OpenText solutions, MYDIN leveraged
OpenText implementation partner, Delaware Consulting. The project wascompleted in eleven months and led to a complete end-to-end digital
approach to invoice processing.
OpenText VIM enables MYDIN to process vendor invoices quickly,accurately and efficiently, and enhances worker productivity, cash
flow and vendor relations. The solution optimizes and simplifies theprocess of receiving, managing, routing and monitoring invoices andrelated documentation.
Many of MYDIN’s suppliers do not transact electronically and it is thisfactor that drove the implementation of the ICC solution to automate
manual invoice capture. Invoices received in paper form or as a PDF
attached to an email, benefit from the ICC solution where the deep integration into SAP fully automates the data extraction and eliminates
manual data entry.

“The time savings we’regiving back to ouremployees is invaluablefor our business. Each of
our store managers acrossour 78 stores used tospend about an hour a day
acknowledging invoices.
This equates to over 36,000
hours per year that is given
back to our managers
and it enables them tofocus their time insteadon the front-end customer
experience, which in retail isreally important.”
Malik Murad AliIT Director
MYDIN

Leading Malaysian retail chain digitally transforms accounts payable operations

Now, MYDIN has a process where most of its invoices that come in do not
require any human intervention unless there is an issue. The OpenText
solution auto-matches at least 95 percent of invoices received, which
vastly reduces the chance for errors to occur in the process.
“The powerful combination of OpenText Vendor Invoice Managementfor SAP Solutions and OpenText Invoice Capture Center has effectively transformed MYDIN’s entire invoice process supply chain andour supplier relationship management. The number of staff required
to manage invoice processing is 50 percent lower. It has even
improved our staff retention unexpectedly. We now have trained accountants doing high value work instead of mundane administrative
processing. It is a better use of their time, they are more engaged,
staff churn is down while our productivity is going through the roof,”
said MalikThe company now has full visibility into the status of all invoices, soresponding to queries has been vastly simplified—compared to theprevious system of manually retrieving the paper invoice from physicalstorage files.
Approval on invoices is almost immediate, compared to previously being
handled four times before being accepted for payment. This has led toan opportunity for MYDIN, which is looking to leverage discounts from its
suppliers for the fast turnaround of invoice payments. By being among
the first to go entirely digital, it is transforming its supplier relationshipmanagement chain and encouraging its ecosystem to adapt by offeringfavorable terms to those who transact with them digitally.

“The time savings we’re giving back to our employees is invaluablefor our business. Each of our store managers across our 78 storesused to spend about an hour a day acknowledging invoices. Thisequates to over 36,000 hours per year that is given back to ourmanagers and it enables them to focus their time on the front-end
customer experience, which in retail is really important,” said Malik.
As MYDIN has grown, the OpenText solution has scaled easily without
the need to hire additional finance professionals.
“We are an established and mature brand but we still foster an innovative culture from the top down. It is this approach that keeps us
competitive and growing, even in tough retail conditions,” said Malik.
“Working with OpenText has delivered outcomes even more impactfulthan originally anticipated, enabling us to stay ahead and search for
new ways to disrupt our own processes for continued success.”

About Delaware Consulting

Delaware delivers advanced solutions and services to organizations andguides them through their business transformation, applying technologies of SAP, OpenText and Microsoft. Delaware employs 1,800 professionals across 27 regional offices across the globe. www.delaware.pro

About OpenText

OpenText, The Information Company™,
enables organizations to gain insight
through market leading information
management solutions, on-premises orin the cloud. For more information about
OpenText (NASDAQ: OTEX, TSX: OTEX)
visit opentext.com.
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