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. […]
As companies transition from paper-based to electronic transactions for ordering and paying for goods and services, many have taken an end-to-end approach to reengineering the purchase-to-pay process by eliminating the need for an invoice entirely. With Evaluated Receipt Settlement (ERS), also referred to as a “two-way match”, the shipping notice or packing slip information is […]
In the Accounts Payable process, for many companies, the greatest effort (and cost) is directly tied to headcount that is focused on resolving discrepancies or fixing errors. Transactions that are “error-free” either require no manual intervention or are quick and easy (and low cost). While errors can occur in the ordering process, by the supplier, […]
With the consolidation of work activities for Accounts Payable into a few centers globally, it is increasingly common for companies to have the scale required to justify the elimination of work through automation. Unfortunately, the path to replace paper with electronic invoices has seen a proliferation of approaches that show promise, with no one clear […]
As a follow-up to the December 2013 research brief on the topic of “Mandating Electronic Payments to U.S. Suppliers”, this article takes a closer look at one of the process steps companies often follow when setting up a supplier for electronic payments. While no longer required, many companies create an Automated Clearing House (ACH) pre-notification […]