“Streamlining Processes” is a common buzz-word in all ERP discussions, and it deserves to, because it actually happens. If your ERP solution isn’t automating and streamlining your processes, then it isn’t working for you.
Although there is a lot of talk about why and how ERP systems streamline processes, rarely do we take the time to look back and see an actual before and after perspective on a particular process.
Well, that’s exactly what Tom Kelly, the CFO and CIO of T-Edwards Inc. gives us in his narrative essay, “Running a Business in the Cloud: A CFO’s/CIO’s Journey.” He breaks down the step-by-step process of something that every business deals with on a daily basis: cutting a check.
Before his organization implemented NetSuite cloud ERP, they went through 17 steps to manually cut a check:
- Enter a purchase order into the accounting system.
- Print the PO and put it in the open purchase order file. Await invoice and receiving documents.
- Receive invoice from vendor.
- Enter invoice into accounting system.
- Place invoice with PO in the open purchase order file.
- Receive purchased item and send receiving documents to the open purchase order file.
- Compare the invoice, PO and receiving documents to ensure order fulfillment and proper invoicing.
- Attach invoice and receiving documents to the PO and place in the “to be paid” file.
- Pick up batch from the “to be paid” file and enter receipt into the accounting system.
- Process accounts payable for those items that have been audited as accurate and are ready to be paid.
- Print out check with check voucher and submit all the paper to the CFO to review and approve.
- CFO approves and signs checks.
- Checks are separated from check voucher.
- Check vouchers are filed for document retention.
- Checks are placed into envelopes.
- Appropriate postage is placed on envelopes.
- Envelopes are mailed
However, after they started using NetSuite for their cloud ERP solution, the process could be completed in 5 easy steps:
- Enter purchase into NetSuite, order product.
- Receive invoice and items and enter receipt real-time into NetSuite. NetSuite automatically matches quantities and amounts.
- Review items to be paid via digitized documents online—no paper!
- Click on the items you want to pay.
- NetSuite processes payment and prints and mails the check for you.
How much time and cost could you save by eliminating 12 steps from a day-to-day process?
Discover some of the other benefits that you can experience with NetSuite by reading Tom Kelly’s complete article, “Running a Business in the Cloud: A CFO’s/CIO’s Journey.”