Case Study: Accounts Payable Automation Results In Productivity Gains Of More Than 20 PercentSource: KeyMark Inc.
When an off-site relocation of the corporate Accounts Payable department of Gulfstream Aerospace Corporate threatened to cause further inefficiencies and increase costs, Gulfstream professionals knew they had to take action. As an organization dedicated to continuous improvement, Gulfstream operates under a lean environment, frequently implementing best practice and Six Sigma efforts. So Gulfstream management approved improving and consolidating Gulfstream's Accounts Payable operations as a lean initiative.
Gulfstream, a wholly owned subsidiary of General Dynamics (NYSE: GD), designs, develops, manufactures, markets, services and supports the world's most technologically advanced business-jet aircraft. Gulfstream has produced some 1,800 aircraft for customers around the world since 1958. The company also offers aircraft ownership services via Gulfstream Financial Services Division and Gulfstream Pre-Owned Aircraft Sales®. More than 9,000 people are employed by Gulfstream.
Prior to the implementation of the accounts payable automation project, incoming invoices were processed at seven different Gulfstream and General Dynamics Aviation Services locations strategically located throughout the United States. Each location received incoming invoices from suppliers and vendors, and manually processed them by entering the invoices into the organization's accounting systems — Corridor®, an aviation service software provider, and Consolidated Application System (CAS). Invoices were then manually matched to purchase orders, routed for approvals and problem resolution, and for four sites, sent to the corporate Accounts Payable department in Savannah, Ga., for check processing and check auditing.