A Food Manufacturer engaged Liberty Advisor Group to identify procurement process gaps and improvements. The areas of opportunity had resulted in an over-inflated procurement organization, missed discounts due to late payments and vendors threatening credit hold.
The Business Problem
The company had grown via acquisition, failing to consolidate processes in the procure-to-pay space across business units. The firm had five unique ERP systems and was unable to holistically view open accounts payable items. The finance and supply chain departments operated in silos, causing issues with procure-to-pay efficiency and resulting in missed discounts and vendor holds.
Liberty rapidly created a consolidated open accounts payable (AP) dashboard across all five ERP systems. Utilizing this dashboard, we implemented process changes to prioritize AP processers’ invoices, reducing the number of vendors threatening a credit hold, and targeting upcoming discounts. This amplified visibility and the prioritization increased discount collection by ~20% and decreased the vendors on-hold list by 40%. The increase in discount collection alone would drive roughly $2M annually in savings, based on current negotiated discount payment terms.
Liberty also implemented additional reporting solutions that will enable:
- Productivity reporting of AP processors (i.e. invoices/day metrics and monitoring)
- Freight tolerance analytics (drive systematic changes for exception fallout)
- Payment term audit reporting (improve working capital by fixing term accuracy)
Liberty Data & Analytics
We address the frustrations of implementing large-scale data and reporting solutions by identifying actionable critical data and provide measurable impact to our client’s bottom line. Clients call us when:
- Building out data analytics capabilities
- Attempting to build enterprise reporting
- Having issues with application integration and master data
- Implementing complex new software, such as enterprise resource planning (ERP)
To learn how Liberty can support your Data & Analytics and process optimization efforts, contact Jason Juds, Principal at Liberty Advisor Group ( email@example.com ).