OBOS selected Pagero e-invoicing to enhance efficiency

With origins dating back to the late 1920s, OBOS has delivered over 150,000 homes and developed numerous neighborhoods in Norway and Sweden. The company operates three factories in the Småland region in Sweden and over 30 local offices across the country. In many respects, they resemble any other building development company, but with a significant difference: OBOS is owned by its 600,000 members.

"Most companies claim they are different, but our primary goal is not profit-driven; it's about building homes for our members. Of course, we remain focused on finances because that enables us to construct more houses. Still, our perspective is unusual, especially from an economist's standpoint," says Anders Fransson, CFO at OBOS.

OBOS processes approximately 150,000 accounts payable invoices annually, of which 67 percent are e-invoices managed through Pagero. Despite concerted efforts to boost this figure, the company has encountered challenges. A notable hurdle is that only 40 percent of their incoming invoices are based on purchase orders. This makes it hard to influence invoice formats beforehand, particularly from smaller contractors with shorter-term contracts.

"We aimed to surpass a 70 percent e-invoicing rate a few years ago. We had people calling our suppliers and pushing the subject. And we achieved the goal briefly before it dipped below 70 percent again. So, we consider our current rate reasonable, as almost all our regular suppliers now send e-invoices," Anders notes. "As more companies adopt modern ERP systems that alert suppliers to OBOS's preference for e-invoices, this rate will likely increase organically."  

Before working with Pagero, OBOS's financial team dealt with a daily influx of paper invoices, leading to significant challenges during absences due to vacation or illness. Today, the situation has drastically improved. The invoice processing is faster and approval only takes a few minutes instead of days or weeks.

"Mentally, it was very demanding to fall behind. After vacations, it could take a month to catch up with the backlog. It's a stark contrast not to feel overwhelmed by stacks of paper invoices and the constant pressure of trying to keep up," Anders explains. "Even if everyone would be away from work today, our system would automatically process 30% of all invoices. For someone who hasn't experienced the previous situation, it's hard to comprehend the difference," Anders adds.

OBOS has also collaborated extensively with Pagero to implement automated processes that further simplify invoice handling. This includes automatic corrections in the system, such as rectifying misspelled names or updating personnel details for projects. Given OBOS's extensive project management and the natural flow of new team members, these features significantly streamline financial operations.

"This has been a game-changer for us, saving considerable time. Previously, identifying individuals referenced on invoices was time-consuming, especially for new employees. A project will often get a new manager, and the wrong name may then appear on the invoice. Now, corrections are made automatically when that happens. The system also corrects misspellings, further simplifying our workflow," he says.

OBOS also uses Pagero partner Medius's data capturing services today to increase data quality even further. 

Another benefit of not having to register and handle as many invoices manually is that it's a tough job to recruit for. Most people who are apt for the job have higher ambitions since they are well-educated and overqualified.

"It's not been a very attractive job, and people who are good at it tend not to stay longer than a year. Digitalization makes it more interesting because you can do more than scan invoices," he says.

The ability to retain staff and offer job descriptions that are easier to recruit for are often overlooked benefits of digitalization. However, any manager with experience in recruitment knows how expensive and time-consuming it can be.

"It's easier for me as a manager to find people who want to do more advanced tasks rather than just handling invoices, especially today when the level of education and expectations are high." 

When OBOS sought to transition to e-invoicing, they evaluated several companies. For Anders Fransson, the choice fell on Pagero for reasons beyond functionality or offerings. Those aspects are naturally important, but he also highlights the personal connection and support level.

"Even though I'm an economist, softer values matter to me. It's crucial that the company feels right, and our interactions with Pagero have been highly satisfactory. All the people I've interacted with have been very knowledgeable and easy to work with," he says.

And what is his advice to other companies hesitating to take the leap to e-invoicing?

"You must make this move," he says. "It's essential for all companies, or they risk falling behind. And it's better to start today than to wait. Many people make the mistake of waiting for the next version or update of their ERP system, for example, but there are better strategies than this; you must act now. Otherwise, the change will be too significant to manage.”