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A JOURNEY LED BY VISION, SOLD ON ANALYSIS AND BELIEFS. EXECUTED WITH TECHNOLOGY AND CULTURAL CHANGE

Lory Troche - CEO Founder
Jun 25, 2016
2 min read

THE JOURNEY

In 2007, one of our customers worked with ICG to develop a Technology vision that would focus on using data, process automation and systems integration as a competitive advantage. This competitive advantage would drive improved productivity and accountability, better control, provide transparency and enhance communication between departments thus enabling effective decision-making and sustainable growth. It had the added advantages that it drove returns and could be implemented over a long or short term depending on capital availability or appetite. One of the first projects was the Accounts Payable automation.

2007 - MANUAL PROCESS, 80,000 INVOICES ESTIMATED, 1144 INVOICES SAMPLED

“84% of the invoices processed had errors”

“93% of these invoices were paid outside term”

“Primary reason due to routing issues, incorrect coding, incorrect approvers”

“Annual processing costs for a single invoice were estimated at $58.00”

2014 – AUTOMATED PROCESS, 73,930 INVOICES, FACTS BASED ON POPULATION

“Cost per electronic invoice $2.16” – Better than Best in Class

“Estimated annual cost savings is $3.4 MM”

“NPV $30 MM”

ADDED BENEFITS - 2014

“No duplicate invoice payments - $16MM rejected duplicate invoices”

“Accuracy – charging costs to proper locations”

“900+ suppliers on-ramped”

"0 late payment penalties"

“No interruption of critical services to the business due to past due balances”

“Credits collected - $400K in 2014”

“Six Sigma root cause analysis performed on all known errors”

“Ability to take advantage of discounts opportunities”

“Standard – lean processes”

“Process compliance, variance, accuracy Exception Handling vs. traditional AP data entry activities”

“Dedicated resources - Customer focused – 97% SLA compliant”

“All communication tracked 3930 Phone calls, 32000 e mails”

"3700 Supplier statement reconciliation"

ROAD AHEAD

We continue to focus on the vision and P2P roadmap. Key areas of focus remain:

Conversion of remaining OCR invoices to full electronic.
Electronic Receipt Settlement
Strategic Sourcing Initiative
Contract Management System
Mobile assist – ability to initiate RFX, RFI, RFP – Purchase Order by taking a picture with a cell phone
Project Management – time tracking – automatic timesheet and invoice generator
ALTO Xpend expense reports and cheque requests
Procure to Pay Data Mart – KPI reporting. Scorecard Dashboards
Manage an additional 65,000 potential invoices based on the new acquisitions. Continuous GAP analysis and process improvements applying the Six Sigma methodology