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Case Study: Improving Supply Chain Cost Management with Automated Reporting

In this Supply Chain Management Case Study, upon completion of services, each supplier within our client’s infrastructure receives a statement for each cloud they manage. These statements serve as the basis for creating payment invoices. In cases where the provided data is incomplete or incorrect, statement corrections and invoice corrections are initiated.

All generated documents, including statements and corrections, are aggregated into cumulative summaries, which are then compared against volume discount thresholds outlined in the agreement documents. Subsequently, financial reserves are created in an external tool based on configured Purchase Orders and accounting line properties.

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Challenge: Managing Complexity and Reducing Errors in Supply Chain Accruals

The system manages approximately 300 clouds, each associated with multiple Purchase Orders, each of which contains at least three accounting lines. Manual creation of accruals on the last business day of each month introduces a significant risk of human error into the process. The complexity and volume of transactions in this example of Cost-Effective Supply Chain Management exacerbates the challenge, making it prone to errors in Purchase Orders and accounting line assignments.

Solution: Enhancing Accuracy in Supply Chain Management with Automated Reporting

To ensure the accuracy and readiness of accounting data for month-end closure, a comprehensive example of Cost Control in Supply Chain Management reporting solution was implemented for assistance. This reporting system utilized an .xlsx file imported from the Accrual tool, performing calculations based on Purchase Orders and accounting lines. The report calculates the current costs, invoice amounts, maximum order values, and verifies order data integrity (e.g., detecting line duplicates or missing properties). Each assistant receives a dedicated email notification directly from the system mailbox, listing Purchase Orders that require their attention and intervention.

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Outcome

The implementation of the reporting and validation system in this Cost Management in Supply Chain Case Study significantly reduced the incidence of incorrect Purchase Orders and accounting line assignments. This reduction not only enhanced the accuracy of financial reserves but also streamlined the process, saving time and effort previously spent on rectifying errors.

Conclusion: Cost-Effective Supply Chain Management for Operational Efficiency and Financial Accuracy

The initiative to streamline supply cost control at our client’s company through enhanced reporting and validation mechanisms underscores the company’s commitment to operational efficiency and financial accuracy. By leveraging technology to automate validation processes and provide timely alerts to assistants, our client has mitigated risks associated with manual data handling, improving overall process reliability. This example of Cost Management in Supply Chain demonstrates the importance of proactive management and technological solutions in optimizing financial operations within a complex organizational structure.

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Monika Radomska

Sales Manager