Continuous Process Improvement
Business Analysis, Process Re-Engineering, Change Management
About The Client
Oil & Gas company
Project Overview
- Improve suppler on time payment
- Reduce new invoice holds by 50 % (Avg. New holds 462)
- Reduced the number of invoices in hold status – by $ 5 million
- IT enhancements to trigger or eliminate NVA hold status
Challenges
- Low First pass yield for invoice processing – 20%
- Multiple systems – PO and Payment system different from invoice processing system
- No process in place for invoice resolution
- No auto triggers for invoice on holds
- 100% Quality inspection – additional layer for invoice
Solution
- End to End process assessment and redesign from PO to Receiving to invoice processing
- Buyer action workouts to clean up backlog of invoice holds
- Built Customized workflow tools to trigger new invoice holds for buyer to action
- Implemented a change management process
Business Impact
- Weekly average of new holds reduced by 65%
- Sourcing clean up activity: Cleared/fixed = $4 M M
- Moved from 4 way match to 3 way match
