August 2018 - IntelliChief

Reduce Your Lead Time: 8 Strategies to Process Orders Faster, Increase Customer Satisfaction, and Improve Your Cash Flow

August 31, 2018

Your customers expect to receive their orders quickly — no matter how they’re placed or how much customization is involved. If you take too long, you’re less likely to earn their repeat business, and you can forget about a word-of-mouth recommendation. The bottom line: Your lead time is important, and reducing it can have a major impact on your business.

Of course, that tends to be easier said than done, but with a few strategic changes you’ll be able to reduce your lead time and optimize your entire supply chain, leading to more satisfied customers and a stronger competitive advantage.

Before you start to make changes, you’ll need to set realistic goals for improvement that take into account your current performance and the nuances of your particular industry. For example, if you manufacture made-to-order products, your lead times may be several weeks longer than a company that has a standard product line.

If you want to grow your business, you’re going to need to reduce your lead time. Here’s how:

1. Remove Unreliable Suppliers From Your Supply Chain

Do you routinely receive late shipments from certain suppliers? Keeping them in your supply chain could be costing you more than finding a different vendor.

A study performed by NC State University suggests that supplier evaluation almost always has a positive impact on a company’s financial performance — even when taking into account the potential cost of a transition.

However, if you do change suppliers to reduce your lead time, make sure you’re stocked up with enough inventory to last you through the changeover. Furthermore, ensure that your new supplier is prepared to start sending you products right away.

2. Choose Vendors That Are Closer to Your Warehouse

In today’s global marketplace, you have access to more vendors than ever before. Unfortunately, while chasing the best prices across the globe, you may end up waiting weeks for products to be shipped overseas. This not only makes your lead time longer but it also complicates the process of returning faulty or unwanted products.

One of the easiest lead time reduction strategies for suppliers is to give priority to vendors that are located close to your warehouse or manufacturing plant. And if you can’t find a local supplier that can compete on price, consider placing larger (but less frequent) orders from international vendors and keeping a larger inventory on hand.

3. Share Your Demand Forecasts With Your Suppliers

If you’re in an industry that naturally fluctuates, your orders may change from month to month. In order to keep your suppliers prepared for larger-than-normal orders, let them know that you’re expecting an increase in demand as early as possible. This helps to ensure that they’re not only prepared to handle an exceedingly large order but also prepared to do so as quickly as possible.

4. Bring External Processes In-House

Do you handle most but not all of your production processes in-house? Consider increasing your own capabilities so you don’t have to send your products out to a third party for completion. This requires a significant investment upfront, but the long-term savings (and the permanent reduction in lead times) generally make this a financially feasible option. Plus, you’ll be establishing your infrastructure for growth, allowing you to scale with ease once your profits start to trend upwards.

5. Automate Your Order Processing Workflows

Once you have your raw materials and are ready to start production, make sure that your own internal processes are up to par as well. Consider:

How long it takes you to get customer purchase orders into your system
How long it takes you to move engineering change orders through production and QA
How often the process gets held up as a result of internal miscommunication
How often orders get lost entirely

If your performance is poor in any of these areas, your lead times are likely suffering as a result. Automating your order processing workflows can help you get your finished products out the door more quickly.

6. Complete Multiple Processes at the Same Time

Certain processes have to be completed before others can be started – and there’s just no way around it. But, if you’re able to identify processes that different individuals can complete at the same time, you can increase productivity and reduce your lead time even further.

7. Improve Internal Communications

Order processing is an “all hands on deck” process. If you’re not collaborating well internally, you may be creating unnecessary delays.

Let’s use order entry as an example. If there are multiple steps in your process that require input from several people, you could be spending extra time you don’t have to. This is especially true if you’re dealing with paper, which can’t be tracked. Paper-based projects left sitting on someone’s desk increases your lead time, as well as the likelihood of lost documents.

Even though poor communication is a major challenge to solve (and often a symptom of other, deeper issues), manufacturers have several options for eliminating bottlenecks. One option? A workflow system that immediately routes order-related documents from one department or user to the next, while immediately notifying users that a project requires their attention.

8. Communicate More Effectively With Your Customers

So this doesn’t technically help you reduce your lead time, but it does help you keep your customers up-to-date while they wait for their orders. Since studies have repeatedly found that communication is a strong predictor of customer loyalty, it’s an important aspect to consider.

If you’re not sending out order notifications, consider investing in a system that’ll do exactly that. (Automation is a major time-saver here as well, with plenty of technologies that handle notifications automatically.) It’s a simple – and nearly effortless – way to set expectations and increase satisfaction.

Let IntelliChief Help You Reduce Your Lead Time

At IntelliChief, we understand how critical it is for you to keep your business running smoothly – and we’re here to help.

We’ve provided hundreds of companies with the tools they need to automate their sales order-processing procedures. The result? Less time wasted on redundant back-office administration, and more time to devote to sales and product development. Some of our customers have even reduced their lead times by up to 50 percent.

To learn more, contact us today, or visit our Resource Library to see the ways that other manufacturers and distributors have started working smarter with IntelliChief.

Automation vs. Robotics: Choosing the Right Technology for Your Business

August 29, 2018

With more than 80 percent of enterprises already using AI – and 30 percent planning on increasing their investment over the next three years – companies that aren’t already using automation to their advantage may be feeling the pressure to catch up. But there are so many options to consider that it can be difficult to decide where to focus your attention. Automation? Robotics? Machine learning? What’s the right technology for your business?

The Difference Between Automation and Robotics

The terms “automation” and “robotics” are sometimes used interchangeably, but there are minor differences between the two.

Automation is the process of using technology to complete human tasks.
Robotics is the process of developing robots to carry out a particular function.

Not all types of automation use robots – and not all robots are designed for process automation. That said, most robots are used for that specific reason – especially in the context of industrial use.

Traditional robots have sensors – like audio and visual sensors – that allow them to carry out complex physical processes without (or with very minimal) assistance from a human. (An example: a robot that travels around a warehouse, collecting items for orders.)

However, there’s also such a thing as a “software robot”, which refers to a computer program. Software robots – which can also be referred to as desktop automation or robotic process automation – are designed to conduct virtual processes rather than physical ones. For instance, some companies use data recognition software, which can be configured to “read” documents the same way that a human would. This reduces the need for manual data entry, which – when done by a human – can be time-consuming and error-prone.

Machine Learning & AI

Now that we’ve covered automation vs. robotics, we can introduce machine learning and AI (artificial intelligence) to the conversation as well.

Artificial intelligence is the concept of using “smart” machines to complete tasks.
Machine learning is the practice of users “teaching” machines how they should function.

While all forms of automation are taught at some point in their development, machine learning is an ongoing practice. These are the programs that become more adept at their jobs the more frequently they’re used.

Machine learning tools are considered semi-autonomous. They can function well on their own, although they do require occasional user input to “teach” them how to make complex decisions in real time. (Autonomous robots, on the other hand, work entirely without human intervention.)

The Role of Automation, Robotics, Machine Learning, and AI in Business

Here’s where all of these terms come together.

If you’re looking to incorporate new technologies into your business, you may have several options to consider. It all depends on what type of goals you’re looking to achieve.

If you’re looking to assemble your products more quickly, a robot may be able to help you speed up your factory operations. If you’re looking to make repetitive administrative tasks more efficient, software-driven process automation would be more appropriate.

Of course, these are just a few examples of industrial robotics and automation – there are hundreds of opportunities to explore. Each one can provide you with a unique competitive advantage – and a different ROI.

IntelliChief Robotic Process Automation for Businesses

If you’re not sure where to start, IntelliChief can help. As a leader in robotic business process automation, we provide companies with intelligent software to help them simplify their most time-consuming tasks.

Our tools can be customized to accommodate almost any administrative function. For instance, we offer solutions for:

Collecting and verifying invoices
Entering sales order information
Producing customer invoices
Administrating HR benefits
Onboarding and offboarding employees
Managing logistics

When performed by employees, these repetitive tasks are highly inefficient and inaccurate – but our software robots are configured to make them faster and more predictable.

And, the more you use IntelliChief, the less you end up having to do. (For instance: type in a new customer’s information once, and we’ll remember it for the next time you bring up that account.)

To learn more about how our automation software can help you transform your business, contact us today. Or, visit our Resource Library to see how other customers have successfully implemented business process robotics in their back office.

AI in Accounting: How Artificial Intelligence and Machine Learning Technology Has Changed the Industry

August 14, 2018

Corporate accounting has long been driven by standard policies and procedures. But today, forward-thinking companies are updating their processes through automation. Modern advances in AI have made accounting faster and less error-prone – not to mention easier to scale. These advantages are part of the reason why – according to Forbes – a number of routine accounting processes are likely to be AI-based by the year 2020.

What Tasks Can Be Improved With Accounting AI?

Artificial intelligence is already capable of handling several common tasks, such as manual data entry and invoice classification. But, the more intelligent that technologies become, the larger the projected role of AI in the accounting area.

Artificial Intelligence for Accounts Payable

For corporate accountants who oversee outgoing payments, AI can help streamline invoice approvals, exception handling, audits, and GL coding.

Artificial intelligence allows technology to process documents the same way that humans do (although these technologies rely on behind-the-scenes configuration rather than natural intelligence). Their algorithms make them perfect for collecting and validating invoices, as well as matching to their corresponding purchase orders and receipts.

In the past, AP automation programs were only capable of reading invoices if they knew exactly where each piece of information was going to be located. This made their application somewhat limited. But, today’s programs have become much more intuitive.

Thanks to machine learning, computers now have the ability to:

Recognize patterns
Remember data for future applications
Learn from decisions made in similar circumstances
“Understand” and replicate tasks performed by human operators

As a result, accounting technologies are becoming more effective at validating transactions, matching quantities and prices, and determining which transactional documents require exception handling.

Similarly, robotics in accounts payable can streamline quantity conversions and tax calculations using information that’s already in a database – no need for an employee to figure this all out manually. And, if there’s an invoice that needs to be reviewed by a human, workflow-enabled programs can immediately send that document where it needs to go.

Artificial Intelligence in Accounts Receivable

Automated intelligence makes it easier for accountants to manage incoming payments as well.

For instance, if a customer submits a single payment for multiple invoices or sends a check that doesn’t seem to correspond with an existing transaction, AI can search for similarities to help sort out the issue. As a result, accountants can correct problems much more quickly, without having to reach out to the customer for clarification.

Artificial Intelligence in Corporate Auditing

Every accounting department has to invest resources into audit preparation, whether they’re paying a third-party or employing an auditor in house. This helps companies demonstrate proper accounting practices and regulatory compliance.

What’s typically a long, drawn-out process (and an expensive one at that) can be almost fully automated. Computer programs can be used to locate sample transactional documents, and in some cases, even deliver those documents right to the auditor. And because AI helps errors from occurring in the first place, reconciling financial records becomes much less of a burden.

In the future, audits themselves may even become fully automated. As AI continues to develop, accountants may be able to rely on computer-driven risk models and the immediate detection of fraudulent behavior patterns. But until the accuracy of those processes becomes much more reliable, human auditors will still be responsible for manual reviews.

Will AI Replace Accountants?

For all the excitement surrounding artificial intelligence, there’s also an undercurrent of uncertainty. Corporate accountants – and the companies that employ them – tend to wonder how AI is going to change the workforce.

One thing that most experts agree on: automation is not going to make accountants obsolete. It will, however, have an impact on their day-to-day responsibilities.

With artificial intelligence systems, routine tasks that used to take hours can instead be completed in seconds. Behind-the-scenes preparation (like locating transaction records) can also be automated, allowing accountants to focus on higher-value initiatives.

According to PriceWaterhouseCoopers (one of the Big Four audit firms), one of the top reasons that financial service organizations are turning to AI is their ability to help them innovate. With machines handling the “grunt work”, accountants can take on more of a forward-thinking advisory role. By studying trends to help companies make more strategic business decisions, accountants are able to create a new (and more valuable) niche that’s unlikely to be taken over by robotic accounting automation.

AI Tools for Today’s Corporate Accounting Industry

To increase the chances of long-term success, companies need to find solutions that are simple enough – but also functional enough – for their employees to adopt right away. (It’s also ideal for companies to ask their employees what features would be most important before selecting a system.)

At IntelliChief, we provide simple, intuitive automation software for routine accounting processes. Our solutions use artificial intelligence to eliminate manual data entry, automatically create and record transactions, and make audit preparation easier than ever. And, our AI tools integrate with the most popular accounting systems, like Oracle and SAP. This makes it simple to improve upon your corporate accounting workflows, without having to completely overhaul your approach.

To learn more about how companies have transformed their accounting departments with AI – and more importantly, how you can do the same – contact us today.

Reducing Business Process Costs With Workflow Automation

August 9, 2018

When performed manually, business process costs are considerable.

While companies realize these costs exist, it’s hard to precisely calculate the number of employee work hours that factor into a process that needs refinement.

For those that do manage to equate hours with dollar amounts, the idea of automating these processes with Workflow Automation starts to look more and more appealing.

Example: Accounts Payable Costs

Accounts Payable is an area with telling industry averages.

Manual, paper-based AP departments need 14.6 days to process a supplier’s invoice at a cost of $16.91 per invoice.

On the other hand, companies with AP Automation are able to reduce processing time to 2.9 days at a cost of $3.47 per invoice.

Therefore, companies that automate Accounts Payable are processing invoices approximately 80 percent faster and for 80 percent the cost of those that rely on manual, paper-based business processes.

Reducing Business Process Costs by 30 Percent Across the Enterprise

Accounts Payable is a great example, but it’s far from the only area of your business that can benefit from Workflow Automation. Nearly any manual process can be made faster, less expensive, and more resilient to human error with automation.

Deloitte even estimates that Workflow Automation can reduce general business process costs by 30 percent. This takes into account staff and time savings as well as accuracy improvements.

Underlying contributors?

Documents are kept organized, accessible, and trackable throughout process lifecycles
Routing is automated, so processes endure fewer “stop and go” delays
Human error is eliminated by automating repeatable processes
Processing errors are prevented by allowing workers to focus solely on problematic exceptions

When Should a Company Transition to Automated Business Processes?

PricewaterhouseCoopers notes that Workflow Automation makes the most sense in companies that perform repetitive processes with high frequency. Thanks to economies of scale, automating each consecutive process becomes faster and cheaper with time.

This particularly resonates with large organizations, where — after a few department-specific implementations — it becomes economically feasible to optimize multiple processes company-wide. By expanding the solution throughout the entire business, companies can increase ROI and provide better customer experiences at every touchpoint.

Considerations for Reducing Business Process Costs

One major thing to keep in mind when you invest in an automation solution, especially if you’re planning to use it across your entire enterprise, it will need to integrate with all of your legacy IT systems. It’s ideal to automate processes while keeping existing front- and back-office systems in place as this will help you overcome the need for a complex infrastructure transformation. But not all solutions are designed to do so.

To that end, things to consider when choosing a workflow management software solution include:

Ensure that your selected vendor has system functionalities and business process expertise that meet your company-wide requirements
Consider processing capabilities for high volumes of data, across multiple departments
Verify that your own business case is solid; work with the provider’s staff consultants to project the ROI of your automation project ahead of time
Engage your vendor to assist with Change Management; they should be able to establish and implement a plan to help your staff function productively in their new environment.

When you choose the right solution, Workflow Automation can show quick results. For most projects, implementation is done in small steps by converting one process at a time into an automated workflow. It’s important to customize business rules for each department’s functional need, which can take time, but when done correctly, it can absolutely help companies cut costs, become more competitive, and optimize their most commonly performed processes.

If you’re ready to reach a superior level of operational excellence in terms of processing speed, costs and adaptability, contact IntelliChief. We have extensive experience automating workflows across AP, Finance, Order Processing, HR, and other departments. Our Enterprise Content Management software links your systems and streamlines disparate processes. We’d be happy to do the same for you.

How to Achieve Your Sales Order Processing Goals

August 2, 2018

What we all strive to achieve in sales order processing optimization:

Having more orders to fill
Having accurate information to work on, right from the get-go
Having a lower order processing cost, faster fulfillment cycle, and more competitive DSO

Enterprise content management (ECM) software helps you achieve all of these (and more).

How ECM Lets You Optimize Your Sales Order Processing Procedure

ECM is just a way to store your documents…right?

WRONG.

It’s actually a comprehensive way to optimize the entire front end of your order fulfillment process.

For example, IntelliChief Capture Enterprise for Sales Orders lets you automate the entire processing environment for your inbound customer purchase orders.

Any PO received via email, fax, or as hard copy documents are imported into Capture Enterprise for processing. The software pulls order information from the header, body, and footer of the PO then verifies it with the data in your ERP. It leverages database lookups, defined business rules, calculations, and confidence thresholds to streamline the entire process from start to finish.

Once the order is validated, IntelliChief creates an official sales order in your ERP without requiring any manual data entry.

Meeting Your Order Processing Goals

If your fulfillment department has internal goals to meet, IntelliChief can help. It lets you:

Confirm the accuracy of each line item and price
Confirm that each product is in stock, and can be delivered on the requested data
Automatically alert you to orders that cannot be processed due to inaccuracies on the purchase order, delivery challenges, credit holds, or issues with the customer’s status
Ship orders more quickly (no more processing delays)

And, because you’re not manually entering each order into your system, you can spend that time focusing on more important initiatives. You can view and immediately address backlogs thanks to analytics, and proactively work to avoid customer satisfaction issues.

It’s achievable sales order processing optimization — and it all starts with IntelliChief.

To learn more about improving accuracy in your fulfillment department, while reducing cost and DSOs, contact IntelliChief today.