Case-Study 3
General Background :
Rework
Frustration
High Cost
Key Problems Identified
- Incorrect scanning logic, transmission failures and broken rescanning process
- Incomplete information on invoices
- Suppliers delay submission of invoices (part of their normal process)
- Service Entry related payments process broken
- Sites book-in goods after invoice is sent by AP
- Requisition and PO elements incorrectly updated at sites
- Bill to ship to issues
Key Improvements
- Correction of invoice sorting logic, IT code corrections for loss of invoices in system; VRS software implementation (for clear images); Controls introduced to identify and quickly resolve invoices failed in system
- Controls and logics introduced to identify and quickly resolve invoices failed in system
- New service entry invoice process
- Additional queue for urgent invoices
- Performance metrics linked to individual errors at Genpact
- Calls with Top late suppliers to improve Receipt TAT
Business Case
Yearly Volume of >50000 Invoices = £350 Million transaction value
Current POT of 52% is down to 40% for few Sites
Target – Rise in POT from 52% to 72
Drivers for Delay in Invoice payment
- Invoices lost in transit or within system
- Lack of controls for failed invoices / invoices which stop at any time during its life cycle
- Payment Terms too low
Business Impact
$0.65 MN Risk avoidance due to late payment charges and interest charges
5 FTE productivity benefit
52% to 82%
60% reduction in process Defect