Zappos' Unified Procure-to-Pay Landscape
Building on an existing VIM foundation, Auritas enhanced end-to-end P2P automation for Zappos through Intelligent Capture for SAP, a bespoke SAP Invoice Management by OpenText implementation for advanced invoice and down-payment processing, OpenText archiving for system rightsizing, and SAP Taulia for supply chain financing.
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Generating $2 Million Yearly
$2 million annuity generated YoY with dynamic discounting.
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400k+ Invoices Processed
VIM currently processes 75%+ of the invoice volume.
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Automated Invoice Processing
Automated down payment handling and invoice clearing.
About Zappos
Zappos is a major American online retailer known for selling shoes, clothing, and accessories, but it's equally famous for its legendary customer service and unique, employee-focused company culture.
Founded in 1999, the company was later acquired by Amazon and has a yearly revenue of $2 billion.
About Zappos
Zappos is a major American online retailer known for selling shoes, clothing, and accessories, but it's equally famous for its legendary customer service and unique, employee-focused company culture.
Founded in 1999, the company was later acquired by Amazon and has a yearly revenue of $2 billion.
The Challenge
Zappos operates in a high-volume, fast-paced retail environment with complex financial and procurement processes that support both indirect and direct spend. In 2013, the company implemented OpenText Vendor Invoice Management (VIM) along with ADA and OCR, primarily to manage its indirect invoice volumes. This allowed them to streamline their AP processes and exception management around Indirect spend and related finance processes, resulting in a dramatic reduction in Invoice cycle time while having greater control and visibility to indirect spend and related finance processes.
Following this, Zappos implemented Taulia in 2014–2015 to enhance supplier collaboration to help optimize cash flow and relationships.
In parallel, Zappos continued to operate highly customized, homegrown procurement and invoicing processes for its merchandised goods (direct spend), designed to support the complexity and scale of its retail operations. With many environments for finance and spend, the company wanted better integration and automation across its processes.
Challenges:
• Highly customized procurement processes with limited standardization and scalability
• Lack of end-to-end automation across procurement, invoicing, and accounts payable processes
• Gaps in integration between procurement, finance, and invoice management tools reduced visibility and efficiency
The Solution
To address the complexity of Zappos’ procure-to-pay (P2P) processes and unlock greater automation, Zappos engaged Auritas to design and implement a highly integrated solution leveraging best-in-class SAP and OpenText technologies.
Auritas led the architecture and implementation of an end-to-end P2P automation framework that aligned with Zappos’ unique business processes while improving efficiency, scalability, and financial control. Key components of the solution included:
• Intelligent Capture for SAP: Zappos upgraded to Intelligent Capture for SAP to take advantage of advanced capture and machine learning capabilities, significantly increasing automation rates for complex, non-standard invoices and reducing manual data entry.
• SAP Invoice Management by OpenText (VIM): Auritas delivered a bespoke VIM implementation tailored to Zappos’ requirements, including automated handling of down payments and auto-clearing of invoices against down payments, streamlining exception management and improving invoice accuracy.
• OpenText Archiving and Document Access: Implemented to support system rightsizing and long-term data accessibility, enabling performance optimization while maintaining compliance and audit readiness.
SAP Taulia Supply Chain Financing: Integrated to extend early payment and dynamic discounting opportunities, helping Zappos optimize cash flow while strengthening supplier relationships.
Results & Benefits
By tightly integrating these solutions into a unified P2P landscape, Auritas enabled Zappos to increase automation, improve visibility across processes, and support both indirect and complex merchandise-related spend within a scalable, future-ready architecture.