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Peikko Group | Process transparency enhances functional efficiency

Esa Rusila, CFO, Peikko Group

We aimed at two things: transparency of costs and process efficiency.

Operating in the international marketplace, Peikko Group is a Finnish producer of fastening technology for concrete structures. Employing circa 700 people, the company has operations in 27 countries. Key target groups are construction companies and factories producing construction materials. Peikko uses Microsoft Dynamics AX in its operational management. Efima’s Invoice Workflow and Travel & Expenses solutions have been integrated into the system, delivering significant improvements in process efficiency and transparency. 

Clear intentions, clear solutions 

Previously, Peikko’s purchase invoice process had been completely manual. The approval process had been built during the past five years. Now the goal was to make the actual purchase behind the invoice visible to the invoice approvers through automation. Peikko wanted the capability to drill down to the costs of each cost centre through a clear user interface. The Group was also looking for an easy-to-use solution for its travel claims process. The clear intention was to achieve improvements in process efficiency. 

Identifying fit-for-purpose solutions 

Collaboration began with implementation of Efima’s 360°analysis. Peikko’s situation was viewed from different perspectives to identify the most fit-for-purpose and efficient solution that would support the company’s business strategy. Esa Rusila, CFO at Peikko Group, considered the analysis an excellent starting point for the project, proving Efima’s competence and establishing confidence in the partnership. ”Efima’s substance matter knowledge has been crucially important in the automation of the processes. It has brought us a lot of extra efficiencies, and now we know where to look for more – for instance, in reporting”, Rusila says. 

During the first phases of automating the invoice process, it became clear that the optimum solution for handling purchase invoices would be within the ERP (Enterprise Resource Planning) system. The Efima Invoice Workflow service, built on top of Microsoft Dynamics AX, was the natural solution. Automating finance processes requires deep knowledge of the process and its functions, as well as the capability to integrate the application with other solutions (such as the scanning service and e-invoicing). According to Rusila, it was Efima’s combination of understanding of financial processes allied to the capabilities of Microsoft Dynamics AX that made the company the right choice for Peikko. 

Rusila comments: ”We were looking for two things: transparency of costs starting from the actual invoice, and efficient throughput of the process. We wanted to have a clear view of our costs at the point where they are entered into the process.” Internal customer satisfaction – making the invoice approvers’ work easier – is also one of the key benefits of the new system. The management travels a lot and now they can, for example, utilise their time at airports to approve invoices with traveling no longer causing delays in invoice approval. 

Further areas for improved efficiency 

The project has also enabled the identification of further areas where improved efficiency can be achieved. These include implementing the Purchase Invoice and Travel & Expenses solutions across subsidiaries. Germany and Slovakia are first on the list. Since the ERP system is already in use in 12 countries, and the Purchase Invoice and Travel & Expenses processes have now been defined, the roll-out is expected to bring immediate benefits. The next step in Peikko’s and Efima’s cooperation is to automate the sales invoice process globally.