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QX Automating the purchase order process

CASE STUDY:

Automating the purchase order process of a leading student accommodation business

Overview

The client is one of the leading student accommodation providers in the UK.  Their properties have varying stock requirements and are managed by both permanent and temporary staff.  They have numerous vendors supplying different items and services for sites and also for specific events. Each site has its own chart of accounts and purchase ledgers.

Business Challenges

  • Difficulty in managing the outgoing payments and tracking orders as there was no linked system in place to co-ordinate the process.
  • Staff would contact their group finance team via email to order stocks, who would in turn raise a PO and record it in an Excel spreadsheet.
  • Delays in ordering using this manual process were leading them to last-minute purchases from non-preferred suppliers at a higher cost.
  • Receiving invoices without accompanying paperwork and duplication of orders was a regular occurrence

In order to streamline and speed up the process, the client was looking for a tailor-made purchase order system with the capability to track orders, control budgets and reduce expenses.

How QX helped

QX Software Services mapped out and proposed a bespoke solution in the form of a Purchase Order (PO) System.  We provided them with a secure web-based portal, which did not require capital investments in hardware, software or labour costs by the client. The system design and implementation focused on a number of areas:

  • Mapping of all accounting related activities specially for purchases and expenses
  • Purchase order automation for better allocation of budget and resources
  • Complete tracking of order from source to fulfillment for better invoicing
  • Site-wise material management and advance payment options to authorised users
  • Created new tools for accurate reporting and payment process management
  • Defined roles and expense amounts to each user to manage budget allocation for purchases
  • Improved strategic decisions by providing purchase and expense reports

Benefits delivered

  • 100% order confirmation as both vendor and employee receive copies for the order cycle
  • 100% quality check of orders which guarantees 99.5% accuracy of processing
  • 0% invoice discrepancy and duplicate orders reduced to only 3 in first six months of implementation
  • Secure internet-based application with auto back up facility
  • Automatic calculation of VAT and other taxes
  • Over 60% savings on overhead costs by automating Purchase Order process
  • Finance team spent fewer hours on purchase approval and reconciliation

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