Custom Procurement Reduces Annual Invoice Fees by $200,000

Company Profile

This company solves the world’s most critical problems for thriving cities and resilient environments. They provide operational advancement, scientific discovery, and cutting-edge manufacturing that turns abstract ideas into realities, transforming the world for good.

With a talented staff of over 52,000, this company provides a full spectrum of professional services including consulting, technical expertise, scientific discovery, and project delivery for the government and private sector. Specifically, one of the key services they perform is Facilities Maintenance and Construction.

Challenge

This company used Quickbase to fulfill Facilities Maintenance and Construction services at client sites. They also used the platform to manage the entire process from supplier onboarding, document collection, and purchase order issuance to invoicing and payment.

Their system manages over 5,000 purchase orders and over 40,000 invoices totally over $200,000,000 in value every year. And before hiring Quandary Consulting Group, the program’s average invoice turnaround was more than 60 days on average (from receipt to payment). Plus, 20-30% of invoices were paid late. This cost the company over $200,000 a year in late invoice fees.

Solution

Quandary Consulting Group identified the problem facing the client and went to work quickly. During our discovery, we mapped out their existing workflows and identified areas of improvement.

Our first task was to build a custom procurement and accounting system in Quickbase. This new system provided better reporting, app structure, and more streamlined procurement operations.

We also helped them expand their Quickbase usage beyond their primary application. Our team built additional apps that processed contract management, time tracking and billing, email-based workflows, and much more.

For contract management, the application we created provided additional visibility to capitalize on upwards of $75,000 in potential revenue.

Overall, these additional applications and workflows helped save significant time and resources as well as reducing human error across these operations. And we managed these improvements even as the client reduced staff.

Results

These were the benefits of our custom procurement and accounting system:

  • Over $200k in annual savings
  • Increased earnings
  • Decreased invoice turnaround time
  • Improved reporting and workflows
  • Reduced accounts receivable days from more than 60 days to less than 20 days
  • Less than 1% of invoices paid late (reduced from 20%-30%)
  • Increased revenue opportunities due to more visibility

In short, the average invoice turnaround has decreased to 20 days. And the percentage of invoices paid late has been decreased to less than 1%, saving over 95% of potential lost revenue within the first year.

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