ARDEM was approached by one of the largest automotive retailers in the US with over 200 locations across the country to provide customized back-office support for their internal operations.
The client required dependable back-office support and was seeking a partner who could take over and manage the back-office task of going to each dealer, downloading invoices and funding statements, and renaming around 600 invoices and funding statements daily.
Their challenge was finding a reliable partner to offload their back-office tasks as it would allow their team to refocus on more value-added tasks.
Driving Forward to Define the Scope of Work
The client came to us looking for someone who could take over and manage the back-office task of going to each dealer, downloading invoices, funding statements, and renaming around 600 invoices and funding statements daily.
They needed a partner who was experienced enough to provide complete back-office support and dexterous enough to arise to the challenges of untangling their complicated processes and execute them perfectly.
The full scope of work would entail the following:
- Our team has to reach out to each dealer individually and ask them for the invoices.
- The invoices received have to be downloaded along with the additional paperwork including funding statements, etc.
- Around 600 of these documents have to be downloaded daily. Additionally, both the invoices and funding statements have to renamed using a specific code.
- All invoices and funding statements had to be processed, completed and delivered within 24 hrs.
- Based on initial performance, the client was looking for someone who could later take on additional tasks and responsibilities as well.
Shifting Gears to Overcome Current Challenges
The task at hand for our team was to create a solution that would ensure accuracy and efficiency while meeting the client’s 24-hr turnaround deadline.
The task was made even more challenging by the fact that every retailer’s website varies in format and our team had to manage all these different invoices and funding statements from each retailer’s website, mapping out formats and renaming around 600 invoices individually as per a specified code per day.
This solution required a dedicated trained team of analysts who could quickly and accurately download and rename all invoices and funding statements while generating high-quality output in time.
Proposing a Clear Route to Efficiency
ARDEM’s team set down to work and our first task was to gain a complete picture of the client’s operating structure and their current workflow.
Our team established an effective chain of communication with the client and their management to study their existing operations. Once we had a clear idea of the existing workflow, our process engineers started devising a plan for an optimized workstream that would allow our team to meet daily/weekly/monthly objectives while ensuring a smooth transition for the client’s current process.
Our goal was to not only execute the current processes perfectly but also to create a good first impression that would allow us to collaborate with the client on additional tasks.
Here’s how ARDEM implemented an effective back-office support solution for the client:
- ARDEM set up a team to manage all invoices and funding statements from each retailer to ensure a 24-hour turnaround, i.e., working between 9 PM EST to 9 AM EST.
- We created separate work instructions are created for all retailers to guide and instruct our analysts.
- Each funding statement has to be named by the store number and bank code, our analysts have been trained to do the same with the aid of clear-set instructions and a specially created training program.
- Each invoice will be named with the last 8 numbers of the VIN number, all analysts working on the project were properly trained before being moved to the live project.
The client was impressed by our performance and decided to delegate additional tasks to us, this included:
- Statement Matching
- Bank Reconciliation
- Working Capital
Executing Strategies for Additional Efficiency
After successfully collaborating on their primary back-office function, the client decided to reach out to with us out to us for assistance with additional functionalities.
ARDEM built and executed a successful strategy for statement matching:
- All statement files come in PDF format for reconciliation.
- All invoices will be recorded to ensure that all statements have been received.
- The data extracted will be matched across 5 data points for verification.
Our team created an effective solution for swift and efficient bank reconciliation on behalf of the client:
- An average of 60-100 files are received by our team on a monthly basis.
- These documents have to be processed and completed by the 20th of each month.
- All data received is reconciled to the previous month’s GL postings in regards to:
- Corrections
- Reconciliations
- Checks
- Deposits
- One-to-one matches
- Matching to balance out transactions to zero
- Our team then reviews all remaining items after all matches have been made.
- Our team also conducts reviews for any outstanding bank transactions that do not have book postings or are slightly off. Everything thing is double-checked and submitted after a thorough investigation.
Here’s how ARDEM proposes to provide additional value by streamlining their working capital:
- Our team will input cash in the bank from financial statements.
- We will further enter the working capital and check to ensure all requirements have been made.
- Our team will also enter the profit/loss data for the last available month.
- Once all this is done, we will re-check and verify everything before uploading it into the client’s system.
In Conclusion
Trust, communication and performances, these are the hallmarks of a successful collaboration. At ARDEM, we believe in diving deep and truly understanding our clients. This enables us to engineer solutions that match their present and future goals for business growth and improvement.
As we move forward in our association and building a long-lasting relationship with our client, here’s how we propose to assist our client further:
- 10 more analysts will be added at the beginning of the new year for additional tasks.
- Over 60,000 invoices and statements have been processed and indexed so far, we plan to maintain and improve these numbers further.
- Scalability and industry experience to provide continuous value by outsourcing additional tasks.
Understanding our clients helps us better and empowers us to work smarter. If you want to learn more about how we can help your business grow via efficient back-office support, get in touch with our team for a free consultation today.
