What are three issues with the current business process at JSM Manufacturing?
Slow payment processing, manual invoice verification, and a lack of real-time communication are three issues with the current business process at JSM Manufacturing.
Slow Payment Processing
Slow payment processing: Vendors often complain about the length of time it takes for JSM to pay their bills. This can create strain on the relationships with suppliers and impact the company's ability to acquire necessary materials in a timely manner.
Manual Invoice Verification
Manual invoice verification: The accounts payable clerk manually reviews invoices with purchase orders. This manual process is time-consuming and increases the likelihood of errors or discrepancies slipping through the cracks. Implementing an automated system for invoice verification could streamline the process and reduce the chance of errors.
Lack of Real-Time Communication
Lack of real-time communication: The accounts payable clerk meets with the purchasing and receiving departments weekly to review bills and verify received items. This lack of real-time communication causes delays in resolving discrepancies between invoices, purchase orders, and received items. Implementing a system for real-time communication, such as a shared online platform or software, could help speed up the reconciliation process and improve overall efficiency.
By addressing these three key issues in the current business process at JSM Manufacturing, the company can enhance operational efficiency, strengthen vendor relationships, and better meet the increased demand for its products during the CoVID-19 pandemic.