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The accounts payable (AP) department for a global consumer goods manufacturer had new leadership who discovered they lacked visibility into key metrics for managing their teams’ performance. They sought our assistance to support them in making a successful leadership transition by helping them gain access to better, more real-time information to monitor the effectiveness of AP operations, especially considering they were making ongoing acquisitions at a fast pace. In addition, they needed the ability to identify bottlenecks in daily operations to optimize throughput, while simultaneously reducing risks and driving efficiencies.
We designed and developed a formal metrics dashboard in the form of a visual tool that presents key performance indicators (KPIs) and other relevant AP process data in a centralized and easily digestible format. The metrics dashboard tool provided the automation to generate specific KPIs that measure performance and provide nearly real-time visibility into the AP process. This allowed stakeholders to monitor the status of invoices, payments and outstanding liabilities, and identify bottlenecks and areas for improvement.
The KPIs tracked included a mix of leading and lagging indicators based on predictive and historical metrics to provide a comprehensive view of AP performance. The leading indicators help identify potential issues before they escalate, while the lagging indicators measure past performance.
The KPI dashboard met the client’s needs, allowing AP leaders to gain visibility into their operations. This enabled them to streamline workflows and reduce invoice processing times, which also reduced late payment penalties and improved team performance. This, in turn, led to improved relationships with vendors and predictable payment schedules.