Context
A US company has implemented a new RPA system (Kofax) to automate the Procure-to-Pay (P2P) process and vendor invoice management. Six months post-implementation, noticeable improvements in invoice management efficiency have been observed. Despite these gains, the introduction of this automated process has significantly disrupted the entire Purchase to Pay cycle, affecting not only the Accounts Payable (AP) team but also the purchasing and receiving teams.
The finance leadership has initiated a post-implementation assessment with the objective of enhancing both the quality and efficiency of the process, for:
- A better relationship with Vendors: improved visibility, timely payments, reduced queries, and fewer statements,
- A better collaboration with Finance: facilitated monthly closings by minimizing the accruals process,
- A better alignment between the AP team and purchasing parties
- A streamlined process enabling the AP team to transition towards a more proactive role as business partners.
Accomplishment
Part 1 – Assessment. Penon Partners conducted a diagnosis to identify the weaknesses in the existing process and provide recommendations:
- Statistical Analysis: Performed detailed statistical analyses on the invoice pipeline.
- Team Interviews: Engaged with the AP team, Supply Chain, and IT departments to gather insights.
- Recommendation Report: presented 25 prioritized recommendations, categorized by implementation difficulty and potential value, including 5 points for immediate action.
Part 2 – Implementation. At the request of the client, Penon Partners led the change management effort:
- Reporting & KPIs: created reports and key performance indicators to monitor workload and performance.
- Training: Clarified rules, implemented SOPs and conducted training sessions, complemented by daily coaching for the manager.
- Expectations Clarification: Revised job descriptions to clearly define team roles and responsibilities.
- IT Collaboration: Led a collaborative project with the IT department to enhance system interfaces.
Outcome
In six months, invoice processing time improved by 55%. Team members were empowered, enhancing their collaboration with internal partners.