SUCCESS STORYFSNI North IslandIndustry• Retail/grocerySolutions• OpenText™ Vendor Invoice Management
for SAP Solutions• OpenText™ Invoice Capture Centerfor SAP Solutions• OpenText™ Document Accessfor SAP Solutions®

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Services• OpenText™ Professional Services

Results
Replaced manual vendor
invoice processing with adigitized process, achieving
up to 90% automation
Eliminated double handling andredistribution of paper invoices
Ensured a faster, more efficientand transparent supply chain
Created new opportunities forAccounts Payable employees

Foodstuffs North Island digitizes
invoice processing with OpenText todrive Accounts Payable efficiency
Nationwide grocery co-operative streamlines supply chain
and achieves cost savings with OpenText Suite for SAP“There is absolutely no way the team could handle
processing if the OpenText solution was not inplace. They would not be able to keep up with thevolume of work manually. We need the automatic
flow rate to stay where it is because we don’t evenhave to look at 90 percent of incoming documents.
We couldn’t pick up that volume overnight if thesystem went down, so we are highly dependent onit. It’s now a business-critical process.”
Sharn Gamman

Commercial operations process and training manager
FSNI

Foodstuffs North Island digitizes invoice processing with OpenText to drive Accounts Payable efficiency

Foodstuffs North Island is a grocery co-operative that is proudly
Kiwi-owned and operated, employing more than 30,000 people
nationwide and close to celebrating one hundred years in business.
Foodstuffs is made up of two regional co-operatives in the North andSouth Island. Foodstuffs North Island (FSNI) comprises 335 memberowned stores and a team of more than 1,900 support and distribution
center staff supporting its nationwide operations. With a strategic focus
on transparency, cost savings and efficiency, FSNI embarked on a digitaltransformation project with OpenText to move from a six-step manual
invoice management process to an automated paperless system.
At that time, two teams of approximately 18 staff each handled 2.5
million documents per year, including invoices from approximately 1,800suppliers. Today, the company receives a total of 4.5 million invoices
each year. The company operates under a charge through model,
with FSNI receiving and processing all invoices for vendors, which arethen charged to stores in a double-sided transaction. The goal was toreduce costs, improve accuracy and deliver a vastly improved service
to stores and vendors.
“Our stores are our stakeholders and we essentially provide aservice to them. When we recognized an opportunity to improve
accounts processing and positively impact store cash flow, wedecided to take action to digitize [processes] using OpenText,”
said Sharn Gamman, commercial operations process and training
manager at Foodstuffs.

With SAP already implemented within its support center, FSNI
chose OpenText Suite for SAP to ensure maximum process
efficiency from an integrated solution. At an operational level, thiswould allow Foodstuffs to combine its structured and unstructured
data to provide a meaningful user experience and transform key
business processes.
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Specifically, FSNI leverages OpenText™ Vendor Invoice Managementfor SAP Solutions, OpenText™ Invoice Capture Center for SAP
Solutions and OpenText™ Document Access for SAP Solutions.
The solutions enable the company to digitize the entire invoice
management process from document receipt through to payment.
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FSNI leveraged OpenText™ Professional Services to implement
the OpenText solutions. The team helped review and rationalize
processes and provide counsel on best practices based on theirexperience with other large-scale organizational transformations
around the world.
The OpenText solutions enabled FSNI to lower invoice processing
costs, reduce the need for physical storage space at stores,
decrease time retrieving documents when responding to store andvendor queries and avoid the redistribution of paper invoices backto stores via costly courier services.
It has also helped decrease errors in manual data capture andreduce lost and duplicate invoices. The digitization delivers
an improved service to stores and vendors and, with invoices
accessible at any time, FSNI can be more responsive. Importantly,
it also helps with tax and audit compliance by reducing the risks
associated with multiple storage approaches for tax invoices.

“All in all, by digitizing
a core part of ourbusiness with
OpenText, we’ve vastly
simplified processes tohandle bigger volumes
automatically. Thishas helped free up
our valued resources
to perform moremeaningful, rewarding
work with the goal of
creating value for ourowner operators.”
Sharn Gamman

Commercial operations process
and training manager
FSNI

Foodstuffs North Island digitizes invoice processing with OpenText to drive Accounts Payable efficiency“There is now a very strong focus on efficiency and cost savings,
and low-cost purchasing models in our support center. The
integrated OpenText Suite for SAP solution has helped us do thisand extract even more value from our SAP implementation. When
we started, there was an expectation that we would have costsavings from efficiency gains and shift staff to more value-added
tasks. This is definitely the case. In addition, with lower manual
processing effort we have been able to reinvest and focus on
working more closely with our vendors, continually improving
the quality of our processes and the success rate for automatedprocessing. We continue to absorb increased volumes with
reduced processing effort,” confirmed Gamman.
The benefits for FSNI span the tangible and intangible, tactical andstrategic, internal and external, amounting to significant changes tothe co-operative’s operational costs and service to its members.
OpenText has enabled FSNI to automate 90 percent of its incoming
documents, including 1.5 million scanned paper documents and three
million documents received via EDI transfer.

“There is absolutely no way the team could handle processing if theOpenText solutions were not in place. They would not be able tokeep up with the volume of work manually. We need the automatic
flow rate to stay where it is because we don’t even have to look at 90
percent of incoming documents. We couldn’t pick up that volume
overnight if the system went down, so we are highly dependent on it.
It’s now a business-critical process,” Gamman explained.
Foodstuff is on a continued drive to improve processes, as wellas training and documentation. By analyzing the root causes
of inefficiencies, it can make ongoing improvements and create
meaningful performance indicators to further showcase the return on
investment of the OpenText implementation. FSNI has also moved toan SAP HANA database and is working towards a HANA app-based
environment which OpenText will support.
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“All in all, by digitizing a core part of our business with OpenText,
we’ve vastly simplified processes to handle bigger volumes
automatically. This has helped free up our valued resources
to perform more meaningful, rewarding work with the goal of
creating value for our owner operators,” concluded Gamman.

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 aboutOpenText (NASDAQ: OTEX, TSX: OTEX)
visit opentext.com.
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