INVOICE MANAGEMENT AND LITIGATION
The Enterprise Concept Invoice Management Solution provided the client with a simplified and automated tool for monitoring, managing, verifying and routing invoices for payment or correction.
The solution started with the understanding the entire lifecycle of an invoice inside the company’s financial processes. The analysis highlighted the segments of the existing process that needed to be revised and improved. It aimed to achieve a high level of automation concerning human based activities. The departments involved in the processes were: Merchandising, Compensation Department, Financial and the Stores.
PHASES - APPROACH
Defining business concept and creating the application involved the following steps:
- Business Analysis;
- Implementing and integrating systems;
- User Acceptance Testing;
- User trainings;
- Go Live support;
- 24/7 Maintenance.
- Proven reduction in billing processing time by up to 90% in the first month after implementation;
- Productivity increase of 35% in terms of invoices processed;
- Time to register an invoice reduced by up to 40 days;
- Cost savings; Reduction of errors and elimination of paper leads to lower operating costs;
- Performance Monitoring and Management;
- KPI monitoring, effective workload balancing;
- Invoice lifecycle monitoring and management.
ROI 4 months after GO-LIVE
- 5,000 invoices introduced in the system – daily;
- 800 suppliers receive daily e-mail reports on the status of payments;
- 30% of suppliers NOW use the system to send electronic invoices;
- 80% – the level of automation in the business process;
- 1.5 minutes – average Invoice Processing time;
- 200 invoice-related tasks are handled daily to classify errors of price and quality;
- 4000 Order-Invoice cases are completed daily and integrated within the company;
- 30% – the level of improvement achieved during the year in cases of litigation.
- Resolved litigations value – Store: 4,323,000 EUR
- FTE Reduction (Full Time Equivalent): 9500 FTE = 237.500 EUR. (Avg. Salary = 500 EUR\
- COST of processing 1 invoice: 2,35 EUR;
- Clearing orders team: 40 people;
- TIME for processing an incorrect invoice: 40 days;
- TIME for processing a correct invoice: 3 days.
- COST of processing 1 invoice:0,75 EUR;
- Clearing orders supervisors: 2 people;
- TIME for processing an incorrect invoice: 3 days;
- TIME for processing a correct invoice: 1.5 minutes.
- Maximized early-payment discounts by accelerating the retailer’s supplier invoice management;
- The Client now benefits from earlier and more accurate knowledge of current invoices for each store;
- Minimized administrative tasks for field managers.