The latest issue of insiderPROFILES is up online, and has an interesting story about TransMontaigne, a fuel product distributor that had serious issues with its accounts payable process. Due to the heavily manual processes that logged it down the 600-employee company was paying 90% of its invoices late, and at an unacceptable price.
My colleague Dave Hannon has the benefits it realized by automating the processes in its SAP ERP 5.0 system.
By centralizing and automating its invoicing system, TransMontaigne has:
- Decreased the average invoice turnaround time from 32 days to 6 days
- Reduced the average cost per transaction from $30 to less than $7
- Increased the accounts payable department’s productivity due to less “paper pushing”
- Improved its Dun & Bradstreet credit score by 20 points
- Dramatically reduced the number of duplicate payments by nearly 90%
- Cut the percentage of paper checks down from 95% to 40%, with 60% of vendor payments now being done electronically
- Increased volume-based vendor discounts enough to cover the cost of the new technology
Read the whole article for more of the details behind the transformation, as well as the project manager's biggest recommendation for how you can a
chieve similar results.
As I said, the issue is online, but the print version of insiderPROFILES is well laid out and easy to take on the go. If you don't already subscribe, go sign up -- it's free.