Case Study: Accounts Payable

Context:
A prominent global consumer goods firm was faced with supply chain shutdowns, litigation, and fines due to an out-of-control software deployment for an accounts payable automation platform. Key suppliers were flagging unpaid invoices and personnel were complaining about a lack of key features. A backlog of over 8,000 invoices globally had built up.

Issue:

The depth of the problem had yet to be acknowledged and project management yet to be established. The widespread invoice processing backlog prevented payment of key suppliers and other vendors. The drivers of the crisis included a lack of training, attrition in the offshore services department, and technical issues.

Solution:

1. Solaris established recurring meetings with the software vendor, implementation partner, and key internal stakeholders.
2. Solaris ensured that these meetings were focused on driving quick wins and actioning a long-term strategy to put the crisis to an end.
3. Solaris worked with the client’s Supply Chain and Finance function to prioritize payment of invoices that put production and delivery of goods to end consumers at risk.
4. Solaris provided management with an evaluation of the workforce depletion in the offshore services in comparison to the yet-to-be-reaped automation benefits promised by the software. Solaris put together a business case for bringing on additional temporary resources to reduce the backlog.
5. Solaris compiled a list of technical issues within the ERP and AP System that were driving the backlog and worked with vendors and the client’s internal IT team to resolve them in order of priority.

Results:

The client was initially faced with a slew of complaints, litigation, and threats to shut down key supply sources, all driven by unpaid invoices. Solaris set to work partnering with management, vendors, and suppliers alike to resolve the crisis. Within four months, Solaris had worked with Management to reduce the invoice backlog from 4x its pre-implementation backlog to 50% of its pre-implementation backlog. Solaris and its client were able to avoid any shutdowns in production and supply, and only incurred nominal fines and penalties in certain jurisdictions for delayed invoice payments.