General Background :



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