21 Mar Reduce Invoicing Errors
A company’s number one customer complaint was over- billing. Complaints were running at approximately 60 per month in the most recent year. Customer satisfaction and retention were being threatened by a poor billing process.
Reduce over-billing complaints to less than 5 per month within a maximum of six months.
eMRI consultants provided training and facilitation to a team that was assigned to resolve the problem. Primarily utilizing process mapping, failure mode and effects analysis and statistical tools such as ANOVA, the team was able to identify the process flaws that allowed over-billing to occur. Additionally, the team identified key process “roadblocks” in each department. The process was reengineered, partially automated and sales and accounting personnel were trained. Within four months, the process reengineering was completed and complaints were averaging 4 per month.
Concurrently, the team discovered that significant under-billing was going unreported by clients. A 95% reduction in under billings saved the company $360,000 annually.