Accounting
Resolving Accounts Payables Process Disarray for a NASDAQ Listed CPG Enterprise
XYZ (name withheld for confidentiality) is a US-based CPG company. It was struggling with poor payment ratios that were driving vendors away, jeopardizing the supply chain.
EA’s team stepped in to streamline XYZ’s accounts payable process, ensuring vendors were paid on time and kept informed about payment schedules. By improving bill tracking and payment management, XYZ not only enhanced vendor trust but also safeguarded its production cycle.
XYZ (name withheld for confidentiality) is a US-based CPG company. It was struggling with poor payment ratios that were driving vendors away, jeopardizing the supply chain.
EA’s team stepped in to streamline XYZ’s accounts payable process, ensuring vendors were paid on time and kept informed about payment schedules. By improving bill tracking and payment management, XYZ not only enhanced vendor trust but also safeguarded its production cycle.
A key outcome was the company’s ability to identify vendors, those whose delayed payments could halt production, allowing them to prioritize timely payments and maintain seamless operations.
Challenges
This is how our EA team solved their accounts payables challenges:
- Uncategorized and untraceable mailbox.
- Backlog in invoice processing across multiple categories.
- Inability to trace inventory figures.
- Inconsistencies in sensitive reports, such as the Inventory Availability Report.
- Delays in resolving AP bill queries within the company
- Difficulty in retrieving inventory data from multiple 3PL portals
- Challenges in identifying exact numbers for accrual booking at month-end Maintained an ongoing tracker for unprocessed invoices, enabling the client to record accruals accurately.
- Overwhelming workload preventing timely sharing of remittance details with vendors.
Solutions
Our accounting services team developed a tailored solution to address the client’s issues and streamline their financial operations. The approach involved:
- Created a dedicated mailbox for the EA team to categorize and trace sensitive emails and vendor bills effectively.
- Delegated bill processing within the team based on categories to expedite and smooth out the process.
- Prepared an inventory rollout plan for the client to trace inventory figures accurately at month-ends.
- Assigned a dedicated team member with a backup to ensure that sensitive reports are delivered to the client on time without errors.
- Developed an ongoing tracker for the client, detailing who the email was sent to, when it was sent, and when the last follow-up occurred.
- Assisted the client in fetching data from multiple 3PL portals by automating email forwarding and directly extracting data from the 3PL portals.
- Maintained an ongoing tracker for unprocessed invoices, enabling the client to record accruals accurately.
- Ensured the confidentiality of email contacts for client vendors, specifically for sharing remittance or other sensitive correspondences.
Results
Enabling a Powerful, More Efficient AP Process
Our client experienced a transformation in their Accounts Payable processes, with improved efficiency, accuracy, and control.
The implementation of structured tracking systems, automated workflows, and dedicated reporting mechanisms resulted in faster invoice processing, reduced errors, and enhanced vendor relationships.
The client now benefits from a streamlined AP operation, improved cash flow visibility, and greater compliance with financial controls.
Through analysis and strategic implementation, our team at Expertise Accelerated successfully addressed and resolved a multitude of Accounts Payable challenges for our client.
The tailored solutions not only eliminated processing bottlenecks but also established sustainable practices for efficient AP management. Our client now operates with confidence in their financial processes, focusing on strategic growth and operational excellence.
We are your partners in growth through high-quality outsourcing and staff augmentation solutions in accounting, finance, and supply chain roles in the CPG industry, helping you save payroll costs and enhance efficiency.
Struggling with accounts payable inefficiencies? Let EA streamline your AP process, improve cash flow visibility, and enhance vendor relationships.
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