Professional Documents
Culture Documents
Reng Ford Motors
Reng Ford Motors
Reng Ford Motors
In the early 1980s FORD was searching for ways to cut overhead
and administrative costs. One of the places FORD believed it could
reduce costs was in its Accounts Payable Department, the
organization that paid the bills submitted by suppliers.
In the new process clerks do not match purchase order with invoice
as the invoice was completely eliminated and FORD now had only
125 people in accounts payable.
The old process for Accounts payable in FORD
Send Purchase Order
Purchasing
Dept
IF PO, GR and Vendor
Invoice match
Send a make Payment
copy of Send
PO Match PO, Good
GR, Invoice s
Resolve conflict
Send
Invoice
Accounts Receiving
Send Goods Receipt
Payable Dock
The new Re-engineered process for Accounts Payable in FORD
Send Purchase Order
Purchasing
Dept
Vendor
Payment
Enter PO automatically
Online (1) Send Goods
released by Send
Back if does not
system Goods
match with PO
Matc
Shared Receiving
h to
database Dock
PO