ARTICLE
10 July 2024

Technology-Based Solution To Centralize The Accounts Payable Function

Nexdigm USA

Contributor

Nexdigm provides integrated, digitally driven solutions encompassing Business and Professional Services that help companies navigate challenges across all stages of their life-cycle. Through our direct operations in the USA, Poland, UAE, and India, we serve a diverse range of clients, spanning multinationals, listed companies, privately-owned companies, and family-owned businesses from over 50 countries. Nexdigm is an employee-owned, privately held, independent global organization that helps companies across geographies meet the needs of a dynamic business environment. Our focus on problem-solving, supported by our multifunctional expertise enables us to provide customized solutions for our clients.
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...
United States Finance and Banking

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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More