In a large organization like Arjo, with more than 5,900 employees operating in 60 countries, cost management is not only a complex problem but also a key factor in ensuring operational efficiency. By modernizing its cost management process, Arjo has succeeded in saving time, increasing financial transparency and improving operational efficiency. Let’s explore Arjo’s impressive cost management digitalization journey.
1. About Arjo
Arjo is one of the world's leading companies providing solutions that improve the quality of healthcare. Arjo products, from hospital beds to lifting equipment, support healthcare professionals in improving the safety and humanity of patient care.
With a turnover of around SEK 8 billion in 2016, Arjo has established itself in the global healthcare industry, becoming a key partner to many healthcare organisations, including the UK National Health Service (NHS). However, rapid expansion has also posed challenges in managing costs, especially when in the UK alone, Arjo has to process up to 3,000 monthly expenses from 400 employees.
2. Challenge: Manual process is time consuming
Before switching to a digital platform, the system cost management Arjo's is largely paper-based, which leads to many problems:
Too much manual work
Employees must print invoices, attach them to paper forms, and send them directly to the finance department. This process is not only time-consuming but also prone to processing errors.
Lost invoice
Storing invoices on paper makes them susceptible to loss or mismatch with actual expenses, making reconciliation and auditing difficult.
Lack of transparency
Paper systems do not provide detailed information about spending, making financial reporting and budget tracking complicated and time-consuming.
Chris Walker, Cost Manager at Arjo, shares:
“The old system was not only time-consuming, but also left us with no clear control over expenses.”
3. Solution: Modernize cost management process
To thoroughly solve the above problems, Arjo decided to convert the entire cost management system to a digital platform. This is a big step to help the company optimize operations and improve financial efficiency.
Outstanding features of the new system
- Centralized management: Employees can submit expenses and track approval status online, completely eliminating paperwork.
- Speed up approval: The approval process is automated, ensuring compliance with company policies and reducing processing time.
- Improved transparency: Detailed reports help categorize expenses by category and keep a tight control on cash flow.
- User friendly: Intuitive, easy-to-use interface that requires no specialized training helps employees quickly get familiar with the new system.
4. Implementation process: Fast and efficient
Role of project management: Chris Walker led the implementation of the new system, working with departments to collect key information such as cost category codes, HR data and required regulations.
Main steps:
- Data Integration: The new expense management system is connected to existing financial tools, ensuring accuracy and seamless data flow.
- Step by step support: The project team provides detailed documentation and hands-on support to help employees easily get acquainted with the new process.
- Group testing: A small group is selected to test and evaluate effectiveness before rolling it out across the entire organization.
5. Results: Immediate positive impact
Save time and increase efficiency
- Employees can submit expenses via mobile app, saving time and focusing on core work.
- It takes only a few minutes for the finance department to check and process the charges.
Financial transparency
- Detailed reporting helps track expenses by category, ensure policy compliance, and better control cash flow.
- Expenses are paid on time, minimizing over-budget or irregular spending.
Chris Walker reviews:
“The new system not only saves us time, but also significantly improves transparency and accuracy in cost management.”
The success of modernizing its cost management process is a stepping stone for Arjo to continue improving operational efficiency. The company is researching and applying more advanced technologies such as artificial intelligence (AI) and advanced data analytics to automate more financial processes.
Arjo’s journey to digitize its expense management is a clear demonstration of the importance of process modernization. Adopting digital solutions not only saves time and costs, but also improves financial efficiency, creating a solid foundation for sustainable growth in the digital age.
6. Cost management lessons for businesses in Vietnam
To achieve similar results, Vietnamese businesses can refer to modern cost management software solutions, such as Bizzi Expense. Bizzi Expense is one of the leading expense management software solutions, trusted by large enterprises such as Masan Group, Mondelez International, Pierre Fabre,... thanks to its superior automation power and integration capabilities.
Outstanding features of Bizzi Expense:
Control costs strictly according to policies and budget
- Complete and valid invoices and documents
- Prepare budgets by department, project and spending category
- Warning when costs and payment requests do not/do exceed the budget
- Display quick reports of spending information, updates on estimated spending - actual spending in focus
- Dashboard for intuitive, multi-dimensional cost management in real time across multiple platforms
Simplify the process of collecting invoices – creating expenses
- Reduce invoice receipt and verification time – initiate expenses in just 2 taps
- Proactive mass expense reporting helps streamline processes
- Automatically navigate the browsing flow according to established units, regulations, and decentralization
Approve documents conveniently and transparently
- Approve anytime, anywhere cross-platform
- Approval reminders to keep work from getting delayed
- Understand clearly the status of compliance with regulations and budget before making decisions
- Record approval/rejection history with valid reasons
Sign up for a trial now to experience Bizzi Expense and modernize your business's expense management process: https://bizzi.vn/bizzi-expense-promotion?utm_source=ads&utm_arjo-case-study
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