Global Fortune 500 Company Reduces Inaccurate Invoices By 94% With GLSS
Global
Finance
Sales
94%
PROJECT SUMMARY
- Business Case: Increase sales, increase productivity of the Invoice department, increase customer satisfaction, reduce financial cost
- Root Cause Analysis:
- The need to do it manually
- Only one had been trained
- Solutions Implemented:
- Create a system where customers may place directly their orders and avoid mistype errors (from customer and customer representatives)
- Train two sales team members to request and upload prices list timely (once a week)
- Train two member of the warehouse to request on time the payment for allowing using the bar code system and track the inventory online
- Change the invoice and dispatch processes to avoid redundancies
- Project Result:
- The process of invoicing is in control and between the limits required
- Customers are not complaining about late or defective invoices
- Lost sales had been reduced to zero
- The total lead time had been reduced by 40% since the creation of Web Customer Link
In the fast-paced world of financial services, ensuring accuracy and customer satisfaction is crucial. At this global Fortune 500 financial services company, a challenge arose in the Sales Department: reducing invoice defects. These errors not only wasted time but also led to dissatisfaction among customers. GLSS Green Belt Vicente Monasi recognized the need for change and embarked on a journey to reduce inaccurate invoices by at least 94%.
Reducing inaccurate invoices from 64 per month to less than 6 was no small feat. These errors caused disruptions, rework, and unhappy customers. Vicente understood that addressing this challenge required a focused effort and the right tools. To tackle this challenge, Vicente turned to Lean Six Sigma, specifically GLSS Green Belt Training & Certification. GLSS is known for effective training, ease of use, customer service, and most importantly, producing results.
With GLSS Green Belt Training under his belt, Vicente charted a course for success. He gained valuable insights by creating a project charter and employing process mapping and data collection techniques. It became clear that the current process needed more uniformity and was plagued by numerous errors.
Vicenteâs GLSS training facilitated a smooth understanding of the complex process making it easy to dig deeper to determine the true causes of the errors. GLSS training empowered Vicente to delve deeper into the root causes of the problem through methods like the Fishbone and 5 Whys. The root causes uncovered were:
- The need to do the work manually
- Only one person had been trained
- Prices list out of date
- Inventory levels are inaccurate
- Part serial number errors
Armed with this knowledge, Vicente was ready to create solutions using the Solution Selection Matrix. The team implemented the following solutions:
- Create a system where customers place orders directly and avoid mistype errors made when customer representatives take orders directly from the customer.
- Train sales members to upload the price list timelier, once per week.
- Train team members of the warehouse to request on-time payment from the bar code system and track inventory online.
- Change the invoice and dispatch process to avoid redundancies.
