Low-touch Vendor Invoice Processing
A leading provider of "on demand" private aviation services faced significant inefficiencies in their accounts payable process. They were receiving over 3,000 invoices monthly in PDF format from their top five fuel vendors, with each invoice containing an average of 25000-line items per month that had to be manually fed into the system. The process was time consuming, and error-prone slowing down the entire workflow. Delays in invoice processing impacted vendor relationships and hindered the timely recharging of costs to respective aircraft owners. Recognizing their need for improvement, Nexdigm proposed a Low-Touch Process to automate this high-volume activity and streamline operations.
Challenges
- Delays in processing invoices affected vendor relationships and led to shadow credit for aircraft owners.
- Frequent errors and rework caused by the manual entry of complex invoice data, leading to inefficiencies.
- Significant manual effort in processing thousands of invoices daily limited overall efficiency and productivity.
- The high volume of invoices made it challenging to integrate data from multiple fuel vendors into a single, scalable process across the company.
Case Highlights
- Achieved a 35% reduction in FTEs
- 73% reduction in process time for invoice containing 200+ transactions
- Achieved ~ 100% accuracy
Solution
To address the challenges effectively, Nexdigm adopted a structured approach tailored to the client's specific needs:
- Issue Identification and Rule Development: Nexdigm conducted a brainstorming session with the client to identify and analyze the existing process and address the underlying issues. Following this analysis, we scrutinized all exceptions across various entities, gathering comprehensive rules and scenarios to guide our approach.
- Solution Development and Risk Mitigation: Once the framework was established, the team worked on developing the proposed solution while implementing risk analysis and mitigation strategies to anticipate and address potential challenges effectively.
- Data Analysis and Standardization: We collaborated closely with the client to analyze data from their top fuel vendors, utilizing spreadsheets to gain insights into their invoicing processes. We worked collectively to standardize the format of these spreadsheets across all different entities, ensuring consistency and ease of processing.
- Scalable Smart Rule Engine: Nexdigm proposed a scalable smart rule engine, supported by scripts for a flexible and scalable process. This approach ensured that the solution could adapt to varying needs and volumes across different entities.
- Exhaustive Testing and Validation: We designed an exhaustive testing checklist to cover all possible scenarios, ensuring thorough validation before going live across all entities.
- Seamless Implementation and Training: Following implementation, we worked closely with the client to facilitate the transition and address any teething issues. Comprehensive training sessions were conducted to equip team members with the necessary skills to operate effectively within the new framework.
- Continuous Optimization: As the solution went live, Nexdigm's team revisited benchmarks, releasing resources as needed to optimize efficiency further. This ongoing support ensured that the solution continued to operate at optimum performance, meeting all the client's objectives.
By adopting this structured and meticulous approach, Nexdigm successfully automated the AP process for the client, significantly enhancing efficiency, accuracy, and overall productivity.
Impact
Following the implementation of Nexdigm's solution, the client experienced a notable impact across various aspects of their operations:
- The overall payable process was simplified, resulting in 73 % reduction in time, reducing complexities, and enhancing ease of operation for the client.
- The scalable process enabled integrating any new vendors faster in the new automated model.
- The implementation resulted in substantial FTE savings, freeing up resources for other strategic initiatives.
- Accuracy levels were significantly enhanced, reducing errors and ensuring greater reliability in financial operations.
- By showcasing the effectiveness of automation in streamlining their processes, Nexdigm instilled confidence in the client, demonstrating the value of innovative solutions.
- Additionally, the client expressed satisfaction with the improvements made to their payable processes, which not only enhanced operational efficiency but also improved their vendor relationships.
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