AMERICAN PHARMACEUTICAL COMPANY

The Challenge:

INCONSISTENCIES AND RANDOM INSTABILITY IN PROCURE-TO-PAY PROCESS

The Procurement team desired to uphold CSR standards through times of crisis, and needed to visualize errors and delays throughout the entire process in real time.

Every Procure-to-Pay (P2P) process has inconsistencies and random instability. Over time, this company’s process eroded and complications caused suppliers to be paid late with greater frequency. Global disruptions added even more stress and their P2P process slowed considerably from requisition blocks, checks, erroneous data entries and supplier changes.

The Solution:

QAD PROCESS INTELLIGENCE ENABLES INCREASED ON-TIME PAYMENTS FROM VISUALIZED PROCURE-TO-PAY

By connecting QAD Process Intelligence to the ERP, this customer was able to monitor their entire P2P process. Having a global and detailed view allowed this enterprise to identify all the choke points that led to missed deadlines: blockages, cancellations, controls, manual updates, etc.

QAD Process Intelligence allowed users to visualize all these flows and to calculate the “fluidity of the process.” Paying suppliers on time was obviously the highest priority, and they gained additional value in simplicity and fluidity — important criteria to building a stable and flawless process.

QAD Process Intelligence identified three axes of analysis in its complete solution:

1. Process analysis with the identification of nonconforming steps (invoices without purchase orders, loops, bottlenecks, etc.)

2. Temporal analysis: slow approvals, late receipts, missed discounts

3. Dimensional analysis: benchmark by supplier, deviation by country, type of invoice, etc.

The Benefits:

REDUCED DOUBLE ACTIONS, CONTACTLESS PAYMENTS SIGNIFICANTLY INCREASED AND AUTOMATION AREAS IDENTIFIED

QAD Process Intelligence was able to improve the payment time on more than 800,000 invoices per year in a dozen countries. It was also able to provide the list of invoices per supplier and to identify the list of late products on specific stages.

Furthermore, QAD Process Intelligence highlighted POs outside EDI, payments that were made too early, and differences in payment conditions, which led to an improvement in cash flow in all countries.

Finally, the benchmark between countries allowed the enterprise to make the processes more fluid for each unit and reduce the differences between subsidiaries. In addition to saving $300K over  six months, they realized:

• A 12% increase in the rate of invoices paid on time
• Double payment rate down 5 points
• Contactless payment rate up significantly
• Identification of areas to be automated