DavCo Restaurants (DavCo), a leading multi-unit franchisee (156 units) in the quick service restaurant industry, wanted to improve their bottom line. They reviewed their A/P process and found invoices buried on field managerís desks, payment delays due to manual routing and approvals, GL miscoding, and inaccessibility to information. This reduced the accuracy of their P&L and budget forecast , and resulted in a 30+ day cycle time for their 60K+ annual invoices. DavCo quickly realized their time and labor intensive manual process was costing too much in terms of headcount, missed discounts, manager accountability, and lack of invoice visibility for accruals.
DavCo turned to API Outsourcing (API), due to their A/P automation expertise and consultative approach, to identify the best solution for them. API has implemented three outsourced solutions for DavCo, with additional process solutions anticipated in the future.
1) A/P Workflow: API receives paper and electronic invoices directly from vendors, scans, captures invoice data, and initiates the workflow process, all within 24 hours of receipt. Subsequent processes, GL coding, routing of invoices for approval, and exception queues. Exception processing includes a variety of control points including duplicate checking and ensuring only authorized vendors are paid. The final step is electronically transferring approved invoice data to the accounting system for payment.
2) Archived Image Conversion: API converted seven years of invoices including repair and maintenance documents to APIís web based archive, providing DavCo a single on-demand access to current and historic invoices for all DavCo locations.
3) Check Print and Mail: DavCo required a secure check printing solution, which ensured all financial controls were met. With API, check payment files are processed securely in a timely manner and with multiple control points.
The aggregated A/P data and integrated solution, gives DavCo full visibility to the entire A/P process; improving both their bottom line and decision-making capabilities.
The new streamlined and integrated processes have made managers more accountable to the accuracy of invoices and GL coding, and accelerated the entire payment process. This has resulted in an expected annual costs savings of more than 3% of DavCoís total spend. These savings are a result of:
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About DavCo Restaurants, Inc:
DavCo Restaurants, with $225 million in sales, is one of the world's largest Wendy's franchisees. They have operated in the mid-Atlantic region since 1975, and have an enviable reputation for progressive and professional management.
"API's solutions are quickly producing opportunities for vast savings and efficiencies. We have an aggressive target for cost reductions based on greater oversight, vendor discounting based on speed of payment, and change in process at DavCo. API fits in with our overall desire to aggregate data using hosted solutions; putting key data on the desktop of our field management team."
John Rusnak, Senior Director, DavCo Restaurants, Inc.