How Kuehne+Nagel is Driving Continuous Improvement in P2P with Transparent

With over 81,000 employees across 1,300 locations in nearly 100 countries, the Kuehne+Nagel Group is among the top five logistics companies in the world. Managing purchase-to-pay (P2P) operations on this scale requires the highest level of excellence.

To achieve this, Kuehne+Nagel (K+N) has been partnering with Transparent for almost 15 years, focusing on key areas:

• Process validation: Transparent acts as an external set of eyes, thoroughly examining P2P processes and controls. This validation ensures that their systems and technology function as intended, and that their people work effectively.
• Financial accuracy: K+N processes millions of invoices yearly, but errors can occur. Transparent uncovers these errors, helping to protect the company’s bottom line.
• Continuous improvement: Every audit is an opportunity to strengthen controls and refine processes. Transparent provides insights into the root causes of overpayments, helping K+N proactively address challenges and improve operations.

“The low number of findings confirms the effectiveness of Kuehne+Nagel’s controls.”

— Samuel Tan, Corporate Working Capital Manager, Kuehne+Nagel

At Transparent, everything starts with data. We follow the steps of our Accounts Payable Recovery Audit, investigating transactional and vendor data for discrepancies and potential claims such as duplicate payments, missed VAT payments, unallocated payments, overpayments, open credits, and other claims.

We don’t just identify errors; we delve deep to understand their root causes. Using data discrepancies as markers, we pinpoint the origins of overpayments and inefficiencies in the process. By collaborating closely with vendors and the K+N team, we ensure every overpayment is verified and returned to the client.

Over the years, we have successfully supported K+N in several areas:

As technology changes quickly, companies want honest reviews of their systems. Samuel Tan, Corporate Working Capital Manager at Kuehne+Nagel, emphasizes the importance of using new technologies, especially with AI features. “We need to ensure that our processes use the most advanced technologies without creating new process risks,” he says.

Kuehne+Nagel values the neutrality and fresh perspective that Transparent provides.

“Although we have our own internal controls, it’s always good to have that external validation to test if the processes and systems we have set up are indeed robust.” — Samuel Tan

Growth starts with knowing your strengths and areas for improvement. Insights from Transparent revealed that K+N excels in managing double payments and VAT-related issues. However, the credit note registration process for non-trade businesses was identified as an area requiring process improvements.

Samuel Tan shares, “When Transparent audited the 2022 transactions, we noticed a surge in findings due to a specific project. This helped us understand that certain special projects might expose weaknesses in our current processes.”

Customization is crucial, but simplicity is key. According to Samuel Tan, you need a balanced approach to implementing changes without making the system more complex. Transparent offers guidance on impactful issues, helping streamline processes effectively.

“We received several recommendations, some of which we found useful and implemented in our processes. One key suggestion was to implement pop-ups to prompt users to review certain actions before proceeding. Since our financial system is in-house, it was relatively easy to customize based on Transparent’s recommendations. We always review these recommendations in detail to see how we can implement them effectively,” says Samuel Tan.

“As technology evolves, new challenges arise, but overall, Transparent’s recommendations are always addressed.”— Samuel Tan

Kuehne+Nagel constantly strives for excellence. But technological progress also brings new and unique challenges. The secret to staying ahead lies in recognizing and solving these issues quickly.

One notable example involved a supplier-related issue where Transparent uncovered previously unknown credits. These credits were resolved, and measures were taken to prevent future overpayments.

“It’s common for big companies like Kuehne+Nagel operating globally to encounter various unique issues. Transparent provides crucial insights and recoveries. Without Transparent, some issues might go unnoticed, leading to inefficiencies and higher costs”

—  Koen Selie, Lead Delivery Manager at Transparent

Getting vendors on board is essential for P2P process excellence, but it can be challenging. Transparent supports Kuehne+Nagel in aligning and communicating with vendors.

“Working with Transparent has strengthened our relationships with suppliers,” says Samuel Tan. “By understanding the details suppliers provide, we improved our reconciliation process which in turn helps us maintain positive relationships. Clear communication helps us get the information we need, avoiding unnecessary follow-ups.”

Samuel emphasizes the importance of openness when collaborating with Transparent to achieve optimal results.

Improving procure-to-pay processes means enhancing every aspect: process, people, technology, and data. At Transparent, we offer tailored services to meet your specific needs:

• Accounts Payable Recovery Audit: Stress test your controls, ensure compliance, gain end-to-end process visibility, and work more efficiently.
• Vendor Master Data Services: Cleanse, enrich, and update your vendor master data to elevate automation, streamline operations, and ensure timely payments.
• Procurement Performance Management Services: Identify and prevent overcharges, boost contract compliance, and reduce indirect spend.

It all starts with you and your goals. Book a call with our experts to find the best solution for you.