Our client, a burgeoning manufacturing firm, was dealing with an increasingly unwieldy accounts payable process. Despite their growing operations and a steady influx of invoices, they were still utilizing individual email inboxes for invoice reception and vendor communications. This method, while sufficient during their infancy, had become a significant bottleneck. Invoices were getting misplaced, tracking communications was becoming a challenge, and the risk of overdue payments was increasing.
The Challenge
The client needed a comprehensive, efficient solution to manage their burgeoning accounts payable communications and transactions, and it needed to be implemented swiftly to mitigate the risk of vendor relationship strains or financial discrepancies. The solution needed to centralize invoice reception, enhance transparency, and facilitate easy tracking and management of payables.
The Solution
DeMar Consulting Group proposed the establishment of a dedicated accounts payable (AP) inbox. This approach involved creating a centralized email inbox solely for vendor communications and invoice reception. All vendor emails would be directed to this inbox, ensuring a single point of entry for invoices and related communications.
The creation of the AP inbox was followed by a meticulous process of informing all vendors about the change in the invoice submission process. DeMar Consulting Group drafted an informative communication outlining the new process, which the client dispatched to all vendors. This step was crucial in ensuring a seamless transition and avoiding any confusion or miscommunications.
In addition to setting up the inbox, DeMar Consulting Group developed a systematic process for managing the AP inbox. This involved daily monitoring of the inbox, categorizing incoming emails, promptly inputting invoices into the accounting system, and ensuring all queries or issues were quickly resolved.
DeMar Consulting Group trained the client’s accounts payable team on how to manage the new inbox effectively. The training focused on how to categorize and prioritize emails, input invoices into the system, handle vendor queries, and use the inbox to track invoice status efficiently.
The Results
With the dedicated AP inbox in place, the client experienced an immediate improvement in their accounts payable process. Invoices were no longer misplaced or overlooked, and the transparency of the process was significantly enhanced. The AP team could now easily track the status of invoices and vendor communications, and executives had clear visibility into payable statuses, enhancing cash flow management.
The centralization of vendor communications also improved the efficiency of vendor interactions. The AP team could swiftly address queries or concerns, and the record of communications facilitated easy reference. As a result, the company’s relationships with vendors were strengthened.
The establishment of the AP inbox also mitigated the risk of overdue payments, as invoices were now immediately visible and could be inputted into the accounting system promptly. This not only ensured timely vendor payments but also enhanced the accuracy of the company’s financial reporting.
Conclusion
Creating a dedicated AP inbox for the client proved to be a game-changer in managing their growing volume of invoices and vendor communications. By centralizing invoice reception and facilitating efficient management of vendor communications, the client could now handle their accounts payable process with improved efficiency, transparency, and control. This case serves as a testament to how seemingly simple solutions can have a profound impact on business operations.
