Centralization and Optimization of the Accounts Payable function of a consumer durables provider, across 50 retail outlets in the USA. To address a decline in the bottom-line, the client undertook strategic restructuring of key processes, to reduce costs. The project scope included:
- Centralization of the processes used in the Accounts Payable function
- Development and deployment of a Document Management Solution (DMS)
- Phased and remote solution implementation.
Challenges
- Decentralized structure, with 50 retail outlets following distinct, independently developed accounting processes
- Manually intensive process, without a central data repository, creating challenges to data control, security, and reporting
- Duplication of human resource costs and efforts across outlets
- Budget constraints on the transformation project, necessitating remote assessment and solution deployment.
Case Highlights
- 80% cost reduction in the Payables management process
- Minimized disruption with multi-phased approach
- 35% reduction in transition timeline, using remote implementation.
Case Study - A US-based home-exterior manufacturer
The Solution
Our solution design team, comprising of technology architects and accounting professionals (including CPAs) developed a comprehensive solution, spanning:
Process Design
- Used remote knowledge-sharing sessions, to understand the client's customized ERP
- Identified accounting sub-processes that could be automated to build a transition plan
- Drafted a comprehensive process manual that minutely defined the process, to ease implementation and training.
Technology Deployment
- Worked with the finance and IT teams in the US to develop a document management system (DMS) on the client's existing license on MS SharePoint
- Linked the DMS with the ERP and implemented strict data security provisions
- Conduced User Acceptance Testing to eliminate process errors before the go-live Change Management
- Conducted training across the 50 retail outlets
- Provided support for complete deployment of the solution.
Impact
- 80% cost reduction in the Payables management process
- Remote implementation, which helped carry out a speedy transition, reducing the timeline by over 35%.
- Managed and minimized operational disruption, by using a multi-phased approach
- The Document Management Solution allowed:
-
- Invoice storage and monitoring
- Real-time status on pending invoices
- Query management between the client and Nexdigm
- Implementation of process controls
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
