Mind The Value engaged with a multinational manufacturing company analyzing its procurement flow through MyInvenio, the business process mining tool by IBM. The procurement flow was analized from purchase requisition to the good receipt and from invoice receipt to the vendor payment, enhancing the business processes and improving the performances.
An analysis on the procurement flow from from purchase requisition creation to the invoice recepit payment was performed. The necessary information were automatically collected and anlysed by IBM Process Mining tool. In analyzing invoices we focused on checking "on time" versus "delayed" payments by vendors. Analyzing late payments for a top vendor, it is notices that a manual block was part of the flow which is absent in the "on time" payment process. Due to this unexpected and manual activity, such invoices are not considere by the automated workflow for invoice payment and therefore are not processed unless someone will not manually remove the block. This finding was of particular interest in analyzing how external contractors manage invoice payments.
This outcome can give strategic insigths on vendors management an can be used to align the strategy of different procurement officies.
Analyzing orders (purchase requisitions and purchase orders), it is possible to have insights and analytics on the maverick buy including resources, vendors and amounts involved. Moreover, information about the saturation of resources workload can be obtained. In addition, by setting roles it is possible to have an overview on the executed activities and so make a deep analysis on the segregation of duties.
Leveraging on IBM Process Mining, Mind the Value provided analysis and solutions to optimize the complete procurement flow of the company, focusing on the activities connected to the source of products and purchase requisitions, the efficient management and recepit of the order and finally the production of the supplier invoice and account payable. It has been possible to underline and differentiate vendors who get paid in time and those who get paid in delay. In fact, a good vendor mangement strategy ensured that vendors are categorized indentifying key and strategic partnerships managing their level of commitment and strategic alignment with the organization targets.