Improving first pass matching accuracy
A global supplier of tools and engineered solutions.
The client was in need of standardizing disparate processes running on multiple systems, which were creating numerous exceptions and requiring heavy manual interventions.
- Invoice processing
- Vendor master maintenance
- Vendor reconciliation
- Helpdesk and expectation management
Due to expansions over the years, the company found itself operating with more than 50 technology systems – including 19 discreet ERP systems – for its accounts payables process. This resuted in several exceptions and required heavy manual interventions. Other concerns include:.
- An average of 30% of all electronic invoices resulting in exceptions.
- No standard process or best practices across business units.
- Lack of visibility into status of invoices due to inadequate reporting functionality in the payables system.
- Manual process with no metrics for measurement of vendor inquiries.
The client needed a flexible, nimble F&A partner to help standardize, implement and maintain the payables process.
- Standardizing the payables process
- Reductions in invoices lying in exception >70%
- Improvement in first pass match rate of invoices 80%
- $1.6 million Annual cost savings
- Reduction in vendor inquiries 55%
Standardizing the payables process
EXL transformed payables by releasing working capital and improving visiblity for more proactive decision-making. The solution included:
- Implementing a standard workflow solution across more than 1,500 users, resulting in better visibility to exceptions and approvals.
- Completely converting to a paperless environment with central mailroom, scanning and indexing functions.
- Developing standard operating and exception management procedures for all major systems.
- Implementing a reverse indexing process to reduce the number of touch points and improve efficiency.
- Reduced touch points and cycle time and improved accuracy through the introduction of the reverse indexing process.
- ‘Affiliate Vouching’ policy amended by defining acceptable tolerance limits.