Introduction

I have written this proposal to offer a new system design for our invoicing process. Recently we switched to a new filing system for invoices. We used to keep all paper invoices and file them according to customer. At the end of the year, we pulled all the invoices, filed them into boxes, and moved them into storage. This system was very inefficient, so we decided to start scanning the invoices and corresponding documents and saving them to the server in a specific folder for invoices. Although we have benefitted greatly from no longer keeping paper invoices, we are still much disorganized, and we waste a great deal of time searching for invoices.

Customers will often call asking for a proof of delivery after we have already sent the invoice, but they have not yet received it. When this happens, we need to search through a file with often more than 50 invoices, and then send the customer a copy. Many customers would rather wait on hold or wait with you on the phone while you search for the file, instead of having you call them back. This process can take anywhere from 5 to 8 minutes, while the customer sits waiting on the phone. We go through this same process when a customer calls with a question on an invoice they have received. Customers sometimes get very agitated when you cannot find the information right away. There are also instances when our server is down and we cannot access information stored on the server, which is where the invoices are kept. I have found that customers do not like to hear that you cannot provide them with information they are requesting and that you will need to get back to them at a later time, whether it’s because the server is down or you cannot find the information.

Another issue with the current system is that processing takes more time than necessary. Because the process takes so much time, and we only have one person processing invoices, it sometimes take a couple days to get invoices out to customers once we’ve gotten all the necessary paperwork. When customers call inquiring about an invoice or proof of delivery, we first need to go into Frontline to find out if the load has been billed or not. If it has not yet been billed, we must then check to see if the load sheet is still in the driver’s box. If it is not in the driver’s box and it has not yet been invoiced, we then must search through the pile on the desk to see if the load sheet and bill of lading are in there. This process can sometimes take as long as 10 minutes. Again, customers often want to be put on hold while you search for the information, so they get agitated when it takes 10 minutes to find the information they are looking for. Many of our customers cannot get paid from their customers until they have a proof of delivery, which is why it’s important for us to get them their invoice with proof of delivery as soon as possible.

The final issue with our current system is that each customer is different and that makes it difficult to cross train someone as a backup for billing. We currently only have one person who handles billing and she knows, from doing it for so long, which customers get paper invoices, which get faxes, which get e-mails and what those addresses, fax numbers, and e-mails are. Because the process is so involved, it is currently too difficult to cross train someone. This means that billing gets put on hold when that one person is out of the office or on vacation. Again, this increases the time it takes to get the invoice sent out to the customer.

Current Process

As you can see from the process flow above diagram above, the bottleneck in our current system is Sue, who is currently the only person who handles billing. With the new system, we can reduce and possibly even eliminate this bottleneck.

System Design

I am proposing that we look into purchasing invoicing software as part of our new system design, as well as cross train someone for backup when Sue is not in the office. The new system would look like the process flow diagram below.

New Process

As you can see in the diagram above, we have eliminated one of the bottlenecks. This is because the invoicing program is so streamlined that Sue can process invoices much faster than before. If we were to cross train someone for when Sue is out of the office, we could also have the person assist her when a bottleneck occurs at the first point, after she matches the proof of deliveries and then does not have time to being processing the invoices. I would highly recommend the program Working Point. Not only is it completely online, you can store as many invoices and information about your invoices without saving such large files on your server like we are now. Something worth mentioning about this program is that you can search by customer, invoice number, and other variables. This makes finding invoices much easier than the current process.

Benefits

The benefits of the new system are not only that we are reducing our own processing time, but we are saving our customers’ time. We will be able to process more invoices in less time and get the invoices out quicker, and when a customer calls to ask questions about an invoice or a proof of delivery, we will be able to find that information in a much shorter time, which greatly reduces the time the customer spends on hold or waiting with you.

We will also benefit from not having to print out invoices anymore. Since the invoices are created through the new program, the invoice exists in the program, which eliminates having to use a different program for creating invoices and you don’t have so many pages to scan in. You will still need to scan in and save the proof of deliveries, however.

A benefit to purchasing Working Point would be that we would have the ability to cross train someone. Working Point allows you to save billing information about your customers. You can put notes in for each customer that will be there each time you create an invoice for that customer, and you can just click the button to e-mail them. If you need to fax the invoice, you can put that fax number right in the notes. This would eliminate having to remember how to bill each and every customer. Cross training is also a benefit if a customer were to call in and Sue was either busy, not in the office, or not at her desk, the person who is cross trained would be able to take the call instead of the customer waiting on hold or having to wait for a call back.

One of the benefits to us, not the customer, is going to be that Sue’s time is maximized. The less time Sue needs to spend doing invoices, the more time she has to get other things done. Since I currently handle Sue’s overflow work in addition to my own, it will also mean that I will have more time to do my own work. Since Sue is paid salary she does not get overtime pay, but I am hourly, so when I do not have enough time to get my own work done I am getting paid overtime in order to complete both my work and Sue’s. If she can spend less time on invoices, my overtime will likely be eliminated.

Implementation

Implementation of the new system design should be fairly easy, should we choose to go with Working Point. The Working Point program has a very user friendly interface. I did a test run with it and it only took me about 15 minutes to learn how the program works. Sue would need to be trained and I could be cross trained as her back up or we could choose someone else to cross train. The program requires a monthly payment and no installation since it’s an online program so there will be no setup or installation time involved.

Justification

My proposal will benefit the company in financial and non-financial terms. Non-financially we are going to be making customers happy with shorter hold times and getting them the information they need when they need it, Sue will not feel so overwhelmed which will make her happier at work, thus making her more productive at work, and increasing productivity. Financially we will be eliminating my overtime and again, increased productivity (which is both financial and non-financial). I average about 6 hours of overtime each week due to handling Sue’s overflow work. Those 6 hours cost the company $153 each week, or $612 a month. The new program only costs $19 per month (or if you purchase the entire year you get a discount, making the total cost for one year $190). The char below does not show what we gain from increased productivity, but it does show how much money is to be saved over the course of one year if we were to eliminate my overtime and purchase the new program.

Increased Revenue
Overtime eliminated ($153 a week X 52 weeks) $1836 Total Benefits $1836
Costs
Working Points Program $190 Total Costs $190

Balance $1646

Assessment

I will measure and evaluate the success of the new system design by setting a few goals, which are listed below.

1. My overtime will be eliminated.
a. This will be achieved by June 6th.
2. I will not spend more than an hour a day handling Sue’s overflow work.
a. This will be achieved by June 6th.
3. From the time a customer finishes explaining what it is they are looking for, and the time you are able to locate that information in the program will take less than 2 minutes.
a. This will be achieved by June 30th.

Summary

The new system design would create organization, reduce time spent searching for invoices, reduce hold times for customers searching for information regarding an invoice or proof of delivery, reduce the time it takes to get invoices sent out, reduce the time it takes to process invoices, eliminate mistakes that are typically made when invoicing, allow for easy cross training for someone who needs to be a backup for billing, increase productivity, and improve morale of the employees handling the billing.