Optimizing the decision-making process in a manufacturing company
We shortened the invoice approval time from 4 days to 1.5 days. We introduced a new document circulation system that eliminated bottlenecks in accounting.
TechMetal Lublin struggled with a chronic cost authorization process. Together, we developed a new document flow model that relieved the accounting department without the need for expensive investments in new software.
The challenge
The main problem was a decentralized decision-making structure. Invoices went to too many people, which meant the payment deadline often passed before final document acceptance. On average, 47 invoices per month were paid late, which generated unnecessary reminders from suppliers.
The situation was difficult because management lost on average 3.2 hours per week just manually signing paper copies. The lack of centralized insight into costs made it impossible to react quickly to deviations in the production budget.
Our approach
The Senat Biznesu team started with an information flow audit. We identified 3 key points where documents stuck on the desks of decision-makers. Instead of implementing complex ERP systems, we opted for simplifying procedures and assigning responsibility to specific managers.
We introduced the principle of so-called tacit acceptance for small amounts and a centralized verification point. For the first month, we closely monitored every document, catching any inconsistencies in the process.
The solution
We implemented a clear electronic register that replaced paper flow. Every invoice now receives a status visible to authorized persons, and in the absence of a reaction within 24h, the system automatically sends a reminder to the decision-maker.
We trained 9 employees on the new acceptance protocol. Thanks to this, everyone on the team knows exactly what scope of costs they are responsible for and by when they must make a decision. No beating around the bush – it worked.
Results
We reduced the time from invoice receipt to approval by more than half, which allowed for better financial discipline and better relations with key suppliers.
Timeline
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January 2024Audit of invoice flow path at TechMetal
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February 2024Workshops with management staff and implementation of new rules
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March 2024Test period and final performance report
"I was skeptical about changes in procedures, but now the process takes 1.5 days instead of 4. This is real savings of nerves and time for the entire department."