A defense products supplier was able to eliminate 75% of
their 50,000 invoices.
Direct Cost Savings:
Reduced the cost associated with invoice data input, manual re-keying, input errors, manual filing, misplaced paper invoices and the related storage requirements.
Indirect Cost Savings:
Eliminating the time and errors associated with paper invoices improved cycle times and created the opportunity to take advantage of vendor discounts for timely payment.
AP Department Transformation:
dramatic reduction in the time required for clerical tasks eliminated the need
to spend long hours inputting data. Some
of the AP staff was re-assigned to review statements from suppliers and
following-up on outstanding credits. In the first year, the company recovered
$350,000---money that went straight to the bottom line.
All of this translated into increased salaries and higher morale in the department.
Copyright © 2004 Ideal AP