Achieving success in Accounts Payable is all about eliminating process exceptions. Perfection happens when invoice details match exactly with purchase order and receipt details, without any intervention or rework required. The metric used to measure the rate at which this error-free event happens is called the First Pass Match Rate, and the goal of every […]
Continuous process improvement, reengineering, challenging the status quo, and delighting the customer are concepts that the world’s best companies both embrace and pursue vigorously. For the Purchase-to-Pay process, and specifically for Accounts Payable, navigating the achievement of these objectives is complicated when it comes to the right approach for resolving invoices with obvious errors, including […]
Every Purchase-to-Pay organization is likely familiar with working with the Treasury Department to set the appropriate discount terms with suppliers for early payment – with a rigid set of rules for when discounts can be taken, and the constant pressure to collect paper invoices, complete the matching process, and enter invoice details to ready invoices […]
The word “petty” is defined as something that is relatively worthless or unimportant, with a secondary definition of a person who gets caught up in the small details. The word “cash” however, takes on a whole other meaning, with an emphasis at most companies on proper business use, tracking, and detailed record keeping. While some […]
Developing a culture of Continuous Improvement requires much more than sending employees to formal quality management training. Any culture is a reflection of management and therefore needs to start at the top. Management must embrace Continuous Improvement, be an example, and get people excited about the contributions that they can make. While not a simple […]
Making step-change improvements to Accounts Payable processes requires a rigorous approach that considers the end-to-end process that spans order initiation, order receipt and fulfillment from the supplier, receipt of goods or performance of services, and finally completed with payment to the supplier with the resolution of any discrepancies, rebates or refunds. For processing, many small […]
The benefits of using a global process owner for any major process area include increased process standardization, better leveraging the use of technology, and more consistent policies, to name just a few. For the major technology company that was recently featured on a Peeriosity PeercastTM, utilizing Business Process Management (BPM) in conjunction with the global […]
When designing a performance measurement system for Accounts Payable, it is important to understand the reasons to measure and the outcomes desired as a result of completing the measurement process. While it’s true that change begins with measurement, it is equally true that understanding the “what and why” for measurement is an important first step […]
Simplifying the Purchase-to-Pay process from order initiation to payment can result in improvement and efficiencies across the functional areas that touch the transaction, in addition to easing the burden on the internal customer who is the ultimate recipient of the goods or services. Online e-Catalogs have proven to be an important tool for end-to-end improvement […]
The Lean Daily Management System (LDMS) is a powerful Lean and continuous improvement tool that is becoming increasingly popular. LDMS is a management approach and a tool set to help organizations improve their process areas. Places where LDMS can help include: Simplifying communication between workgroups, customers, and suppliers Focusing on identifying and solving problems vs. […]