Thursday Sep 13, 2012

WebCenter Customer Spotlight: Texas Industries, Inc.

Author: Peter Reiser - Social Business Evangelist, Oracle WebCenter

 Solution Summary

Texas Industries, Inc. (TXI) is a leading supplier of cement, aggregate, and consumer product building materials for residential, commercial, and public works projects. TXI is based in Dallas and employs around 2,000 employees.

The customer had the challenge of decentralized and manual processes for entering 180,000 vendor invoices annually.  Invoice entry was a time- and resource-intensive process that entailed significant personnel requirements.

TXI implemented a centralized solution leveraging Oracle WebCenter Imaging, a smart routing solution that enables users to capture invoices electronically with Oracle WebCenter Capture and Oracle WebCenter Forms Recognition to send  the invoices through to Oracle Financials for approvals and processing. 

TXI significantly lowered resource needs for payable processing,  increase productivity by 80% and reduce invoice processing cycle times by 84%—from 20 to 30 days to just 3 to 5 days, on average.




Company Overview
Texas Industries, Inc. (TXI) is a leading supplier of cement, aggregate, and consumer product building materials for residential, commercial, and public works projects. With operating subsidiaries in six states, TXI is the largest producer of cement in Texas and a major producer in California. TXI is a major supplier of stone, sand, gravel, and expanded shale and clay products, and one of the largest producers of bagged cement and concrete  products in the Southwest.

Business Challenges
TXI had the challenge of decentralized and manual processes for entering 180,000 vendor invoices annually.  Invoice entry was a time- and resource-intensive process that entailed significant personnel requirements.

Their business objectives were:

  • Increase the efficiency of core business processes, such as invoice processing, to support the organization’s desire to maintain its role as the Southwest’s leader in delivering high-quality, low-cost products to the construction industry
  • Meet the audit and regulatory requirements for achieving Sarbanes-Oxley (SOX) compliance
  • Streamline entry of 180,000 invoices annually to accelerate processing, reduce errors, cut invoice storage and routing costs, and increase visibility into payables liabilities
Solution Deployed
TXI replaced a resource-intensive, paper-based, decentralized process for invoice entry with a centralized solution leveraging Oracle WebCenter Imaging 11g. They worked with the Oracle Partner Keste LLC to develop a smart routing solution that enables users to capture invoices electronically with Oracle WebCenter Capture and then uses Oracle WebCenter Forms Recognition and the Oracle WebCenter Imaging workflow to send the invoices through to Oracle Financials for approvals and processing.

Business Results

  • Significantly lowered resource needs for payable processing through centralization and improved efficiency 
  • Enabled the company to process invoices faster and pay bills earlier, allowing it to take advantage of additional vendor discounts
  • Tracked to increase productivity by 80% and reduce invoice processing cycle times by 84%—from 20 to 30 days to just 3 to 5 days, on average
  • Achieved a 25% reduction in paper invoice storage costs now that invoices are captured digitally, and enabled a 50% reduction in shipping costs, as the company no longer has to send paper invoices between headquarters and production facilities for approvals

“Entering and manually processing more than 180,000 vendor invoices annually was time and labor intensive. With Oracle Imaging and Process Management, we have automated and centralized invoice entry and processing at our corporate office, improving productivity by 80% and reducing invoice processing cycle times by 84%—a very important efficiency gain.”

Terry Marshall, Vice President of Information Services, Texas Industries, Inc.


Additional Information

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The Social Business Thought Leaders - Steve Denning

How is the average organization doing? Not very well according to a number of recent books and reports. A few indicators provide quite a gloomy picture:
  • Return on assets and invested capitals dropped to 25% of its value in 1965 in the entire US market (see The Shift Index by John Hagel)
  • Firms are dying faster and faster with the average lifespan of companies listed in the S&P 500 index gone from 67 years in the 1920s to 15 years today (see Creative Disruption by Richard Foster)
  • Employee engagement ratio, a high level indicator of an organization’s health proved to affect performance outcomes, does not exceed on average 20%-30% (see Employee Engagement, Gallup or The Engagement Gap, Towers Perrin)

In one of the most enjoyable keynotes of the Social Business Forum 2012, Steve Denning (Author of Radical Management and Independent Management Consultant) explained why this is happening and especially what leaders should do to reverse the worrying trends. In this Social Business Thought Leaders series, we asked Steve to collapse some key suggestions in a 2 minutes video that we strongly recommend.

Steve discusses traditional management - that set of principles and practices born in the early 20th century and largely inspired by thinkers such as Frederick Taylor and Henry Ford - as the main responsible for the declining performance of modern organizations. While so many things have changed in the last 100 or so years, most companies are in fact still primarily focused on maximizing profits and efficiency, cutting costs, coordinating individuals top-down through command and control. The issue is, in a knowledge intensive, customer centred, turbulent market like the one we are experiencing, similar concepts are not just alienating employees' passion but also destroying the last source of competitive differentiation left: creativity and the innovative potential.

According to Steve Denning, in a phase change from old industrial to a creative, collaborative, knowledge economy, the answer is hidden in a whole new business ecosystem that puts the individual (both the employee and the customer) at the center of the organization. He calls this new paradigm Radical Management and in the video interview he articulates the huge challenges and amazing rewards our enterprises are facing during this inevitable transition.

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