The client is a leading Inventory Management and Logistics Solution company catering to manufacturers and distributors across United States, Ireland, China, and Israel.
The client provides inventory management solutions to a global technology company. This involves logistical, data processing, invoicing and coordination support to manage a massive inventory of spare parts across geographies.
The client partnered with HitechDigital to support its inventory management operations which included procurement, vendor networking, invoicing and delivery & dispatch. The actual scope of activity covered:
- Timely capture and documentation of a huge volume of POs
- Coordinating with an extensive network of vendors to ensure accurate and optimized sourcing.
- Processing invoices for all orders raised.
- Ensuring timely dispatch and delivery of orders
The project had its set of challenges owing to complexity, volume, and time sensitivity of operations.
- Maintaining benchmarked accuracy was difficult given that the data had to be entered directly into the client system leaving no leeway for quality check processes.
- The data entry needed meticulous round the clock scheduling to accommodate documents including POs and invoices, flowing in from different time zones.
- The scope of work across the chain was extensive involving information identification and entry into tens and thousands of relevant fields over 63 different steps.
- Processing data from client and end-client systems as well as managing vendor and invoice data received over emails, spreadsheets, documents etc.
- Purchase orders raised were many a time ambiguous, lacked detailing and hence required a lot of coordination to complete.
Delivered a structured and seamless end-to-end inventory management workflow which accounted for processes including purchase order processing, vendor logistics, invoice processing and delivery & dispatch. All data entry and processing activities were done onto the client interface.
The end-to-end inventory management activities require gathering data from the client as well as the end client interfaces. Speed, security, accuracy, and efficient reporting are critical metrics for the project which require a highly skilled and trained team to be put in place. The fact that the team works directly onto client interface makes “First Time Right” a mandate.
A workflow has been implemented to seamlessly address four activity areas including purchase order processing, vendor logistics, invoicing and delivery logistics. Resources are allocated across different time zones to address document inflow from various geographies. They are also mapped to activities depending on their skills and expertise.
Here is the sequence of activities under various buckets:
Purchase Order Processing
- The end client raises requests on its proprietary application (ERP) for either spare parts or for parts to be repaired.
- Alerts or notifications for these entries are received by the HitechDigital data team over emails. The emails include scanned images and documents like customer quotes, purchase order, material items, supplier details, bill of material, etc.
- The HitechDigital team has access to systems- both of client and end client. The team “data enters” (digitally transfers) the PO data from end client application to the application of our client. POs are hence generated on client application.
- Only valid order forms and invoices in English language move into the data capture process. Invoices and order forms in languages other than English are routed to a help desk designated by client for translation. Translated documents/invoices are rerouted to data entry operators for processing.
- Based on details of vendors available in system, stock availability status, prices etc. the HitechDigital team places orders with relevant vendors.
- Bill of Materials (BOMs) for new spare parts is updated regularly to accommodate the fluctuating prices, attributes etc. of different spare parts. The team also factors in differential logistics costs for repairable items.
- Based on confirmation received from vendors along with shipping details, the team updates the client ERP with vendor details including confirmed delivery schedules for the products ordered or sent for repairs.
- In case of any deviation from promised delivery/pickup schedules (as received from suppliers), the team updates the ERP with new delivery timelines.
- The team also addresses all issues on a regular basis related to shipment returns and refurbishments.
- The suppliers across geographies raise invoices for spare parts or repairs. They send these invoices to team HitechDigital over email.
- All data points related to the invoices are captured (manual data entry) in the client system.
- The invoices are reconciled against the POs through a meticulous process of verification and validation.
- The invoices are routed to authorized approvers to approve or reject over the client application.
Dispatch and Delivery
- Post receipt of shipment at warehouse, the details are sent over to HitechDigital team for verification against purchase orders, invoices, and delivery logistic confirmation.
- Discrepant items (Price discrepancies, qty discrepancies, etc.) are forwarded to Buyer/Planners to further investigate and resolve.
- All shipments meeting requirements are approved and authorized for payment in system.
- Granular as well as macro level reports are shared with client through interactive dashboards on daily, weekly, and fortnightly basis as per business need.