The company has radically transformed its operations by employing artificial intelligence (AI) and robotic process automation (RPA), achieving a fourfold reduction in processing costs and cutting payment times by 60%.
31 Jan 2025 | 21444 Views | By Shahkar Abidi
In the automotive industry, where speed and precision are paramount, an efficient billing process can mean the difference between a seamless supply chain and costly delays. For Ashok Leyland, one of India’s leading commercial vehicle manufacturers, the daily challenge of processing nearly 10,000 invoices from around 1,000 suppliers used to ...
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In the automotive industry, where speed and precision are paramount, an efficient billing process can mean the difference between a seamless supply chain and costly delays. For Ashok Leyland, one of India’s leading commercial vehicle manufacturers, the daily challenge of processing nearly 10,000 invoices from around 1,000 suppliers used to be a resource-intensive operation. Today, the company has radically transformed its operations by employing artificial intelligence (AI) and robotic process automation (RPA), achieving a fourfold reduction in processing costs and cutting payment times by 60%.
Vinod G., Chief Information Officer at Ashok Leyland, explains the significance of the shift. “All our supplier invoices are processed using the bots. And we have made it simple,” he says. Suppliers, who are critical to the company's supply chain, now benefit from a system that minimizes delays and manual errors while promoting transparency.
Reinventing invoice management
Previously, Ashok Leyland's invoicing workflow demanded extensive human effort to verify purchase orders, goods receipt notes, and payment data. The process relied on a dedicated team to manage the enormous volume of paperwork generated daily. But with the introduction of RPA, the system now operates autonomously. Suppliers email their invoices—without needing to follow specific templates—and AI-powered bots handle the rest.
The bots extract data, verify compliance with purchase orders and tax regulations, and process the invoices directly into the payment system. “Physically, nobody sees it because it goes into the computer server. The bot runs over there. The bot opens the mailbox,” Vinod explains. This near-seamless automation also accommodates minor discrepancies, like rounding errors, within a pre-approved tolerance range, ensuring that the process remains robust even with minor variances. In the rare event of an error—occurring in fewer than 0.5% of cases—the invoice is flagged for manual review.
The advantages extend beyond convenience. The paperless system has eliminated the need for suppliers to print, sign, and mail invoices, reducing administrative overhead. AI further enhances accuracy by extracting critical information directly from tamper-proof PDFs.
For suppliers, the benefits are clear: faster payments and fewer rejected invoices. For Ashok Leyland, the system ensures compliance and reduces the risk of delays that could ripple across its tightly orchestrated supply chain.
Manufacturing with AI-powered automation and computer vision
Ashok Leyland’s use of AI and automation is not limited to billing. The company has also implemented a manufacturing process assurance system, introducing computer vision and automated mobile robots (AMRs) into its factory operations. This strategy reflects a broader trend in the automotive industry toward end-to-end digitalization, which helps manufacturers meet rising consumer expectations for quality and speed.
At assembly lines and inspection stations, AI-powered cameras monitor products in real time, ensuring defects are identified and resolved immediately. “It is not that it is just getting recorded and inspected at every point, but an instant feedback mechanism is available for ensuring the quality of the vehicle,” says Vinod. By deploying these systems across multiple factories, Ashok Leyland has improved scalability and maintained consistent quality standards.
The company has also automated assembly-line tasks that require precision. Modular manufacturing, which handles parts that vary subtly across vehicle models, now benefits from sensor-driven systems that ensure the right components are selected and installed. For example, during bolt-tightening processes, automated torque systems confirm that each connection meets the required specifications, avoiding assembly errors that could compromise vehicle safety.
Material handling has also been overhauled. AMRs navigate factory floors autonomously, delivering parts to assembly lines exactly when needed. By minimizing human intervention and delays, the robots help maintain an uninterrupted flow of production.
The above AI-driven automation comes in addition to a similar system adopted in sales, marketing, after sales and other areas of operations, the top executive continued.
A win-win situation for OEMs and suppliers
Adoption of AI and robotic process automation by the likes of Ashok Leyland indicates how cutting-edge technology can address longstanding inefficiencies in the automotive supply chain. By automating its supplier billing process, the company has not only reduced costs and accelerated payment cycles but also strengthened its partnerships with suppliers through greater accuracy.