Part 5 – Invitbox "Time Saved is Money Saved"
Part 5 – Invitbox – Data Entry “Time Saved is Money Saved”
Part 2 – Inventory Management
UC has almost 200 different suppliers of parts, about 20 of these are exporters from China. Items imported from China tend to be large, averaging almost 400 lines and entering them into the current system tends to be time consuming and also prone to error. Pricing discrepancies are usually not noticed or picked up at all, as the orders are so large. Further to this, the hold up in receiving stock into the system takes a very long time as well, which further stalls the sales process.
The vast bulk of the suppliers are local, and orders are made on a just in time basis as lead times are very short ie a day or two at the most. As such there is a lot of paperwork to input constantly into the system, and it takes 2 weeks’ worth of data entry per month or 24 weeks annually to get all the information into the system.
This does not include filing the information, and searching for documents. The filing system in general wasn’t the greatest, and was only compounded further by the mad rush to get all this data into the accounts, so that it could be paid on a timely basis.
Key reasons for change
Searching for a document tended to be very time consuming and frustrating. Further to this the data entry time, was very time consuming and tended to be associated with errors that were often not picked up, as the main focus was ensuring that the invoice was in the system, as opposed to checking for price discrepancies, delivery errors, and so on.
Invitbox as a solution, what does it do?
Invitbox is an accounts payable solution that scans PDF’s line by line and inputs it into your respective accounting system. It does this by assigning you a unique email address, which you can use to forward an invoice, or have suppliers email their invoices directly to you.
When the supplier invoice hits the system one of two things happens. One, if it is a new invoice, it will need to be mapped out so that in the future it will be automatically recognized and assigned to be approved.
If the supplier mapping is already in the system, Invitbox takes it through a workflow process of getting the invoice approved, signed off, filed and then finally exported to your accounting system. It also has a section for disputes and variances that are being investigated due to incorrect pricing, etc prior to approval.
This entire process happens almost instantaneously, as opposed to most other solutions in the same category. The reason it can do this is because the software reads the metadata of the pdf to complete its internal process, rather than needing to scan and OCR the document.
If you want to read a full review of a review of Invitbox, click here.
Problem Solved – Data Entry
The data entry was completed as part of the duties of 7 people in UC, in different branches of the organisation. With the introduction of invitbox, the task for data entry and filing is managed by one individual who spends about 8 hours a week, which equates to approximately 10 weeks or 56% reduction in data entry and checking.
Further improvements have come with price discrepancies being picked up by invitbox if suppliers are overcharging or have made errors from their end. UC user errors have completely been eradicated, which was quite problematic with the large imported orders from China. Searching and finding a document is amazingly simple and anyone in the organisation (with the proper authority), can now search and find any old invoice as needed.
Part of the workflow process in the past was to enter all the data and then express post the paperwork to the main branch in Sydney. Occasionally this paperwork would get lost and cause more problems, then the cumbersome task of chasing suppliers up to get reprints etc was quite the task.
It was worked out on average 600 documents were entered into the system per month and as such the best pricing option was to purchase a bulk lot of credits for the annual fee of $1679.00, which equates to approximately $140 a month.
To put that into perspective.
14 weeks of data entry costs (this is the time saved in data entry)
$27 per hour on average (including super, workers compensation)
38 hours per week X 14
That comes to a total of $14,364
Invitbox total cost per year – $1679
A bit of a no brainer really. This doesn’t take into account any efficiencies gained in using the system.
I don’t think I have to really give any further thoughts on this, the numbers and efficiencies mentioned above speak for themselves.