Portfolio - Companies with Annual Revenues Greater
than $100M, 13 of 17
A Managed Services Company
Directive
This customer was getting notified that they were not paying their vendors as contractually agreed upon whether it was a one time cost or a recurring annual cost.
They needed me to review the list of complaints and issues, figure out what the problem was, and fix the process.
Remarks
Invoices were not being paid on-time, incurring late fees.
They had an incompetent employee in charge of paying bills.
They were paying for maintenance on equipment no longer in service. They had no process for updating the contract when equipment reached its life expectancy.
They were occasionally paying another division's invoices by mistake.
They were paying for employee purchases not approved by management.
They could not easily distinguish between costs that were project related and those that were operational.
They had disparate contracts that had not been appropriately bundled together which could otherwise obtain significant cost savings.
Results
The net savings the first year was approximately $80,000.
Efficiency improved 20% and accuracy increased from about 60% to about 95%.
I bundled multiple contracts together for a given vendor, which produced automatic savings.
The ROI was under 5 months.