Visibility Translates to Profitability
No one enjoys tax season, but when you have to pull specific data only once a year for taxes, it can lead to more than displeasure. You could soon find yourself deep in the weeds. Leaders of a major valve manufacturing company in Texas were facing this situation on an annual basis. In order to meet state requirements, they had to work to pull transportation spend by what the company pays for and what their customers pay for at each business location. This was something the accounting team spent days manually compiling and, apart from being unenjoyable, it was extraordinarily time-consuming. Added to the mix were paper invoices, electronic invoices, and the complication of multiple locations.
The challenge
This particular company had several acquisitions and three different business units operating under two enterprise resource planning systems with data spread out over several systems in many locations. The purchasing and manufacturing plant were hundreds of miles apart and their supply chain was complicated with many moving parts. As a result, taxes and accounting — especially around transportation spend — involved difficult and time-consuming processes.
The solution
LynnCo experts performed a strategic business review and consolidated and automated all auditing and invoicing systems. Now the people, reports, system, expense coding, and general ledger coding are all in one place.
The results
The LynnCo supply chain performance management solution provided visibility into collections and commodity, which allowed for cost savings due to the new insight in knowing where collections needed to occur. Eliminating the need to manually assess what was paid, what needed to be paid, and where things were at in the process improved efficiency. In addition, the client was able to reduce overhead by knowing how much supply was needed — rather than overstocking based on problems. The icing on the cake was that new visibility allowed staff to recognize overcharge situations and create chargebacks accordingly.
What once took days is now as simple as putting in a location and pulling a report.
Even with the purchasing and manufacturing plant hundreds of miles apart, leaders of this company can always see where things are in the process. This allows them to control the process themselves, rather than having suppliers in charge.
In summary, this LynnCo client gained
- autonomy, visibility, and reduction of paperwork;
- an auditable trail;
- control over the entire process;
- cost savings; and
- one version of the truth.
Whether you need to improve performance in your supply chain or step up to gain greater business intelligence overall, LynnCo experts can help you with your supply chain management. Through our expertise in supply chain management, business intelligence, and the day-to-day challenges of having multiple locations with a complicated distribution system, we can help you simplify your business and make things easier and more efficient. The end result with be a positive impact on your bottom line.
[cta]For more information on how to put LynnCo solutions to work for your business, contact your Solutions Strategist, Jeanette Sefers at Jeanette.Sefers@lynnco-scs.com. [/cta]
