Optimizing Invoice Workflows

Internal Tech Product

Optimizing Invoice Workflows Through Automation

How did Streamlining invoice automation at Bazaar Technologies resulted in achieving a 70% reduction in processing time and a 60% decrease in errors?

Role

UX Research, User Interviews, Visual Design, User Flows, Prototyping, Usability Testing

Timeline

6 Months, 2022

Project Type

UX Research, Internal Tech Product, Web App Design, Invoice Management System

Tools

Figma, Notion, Miro

Company

Bazaar Technologies

Bazaar's Universe of Financial Services

Understanding the Problem

Bazaar Technologies offers a complete commerce and financial services platform for Pakistani businesses. With a wide retail network, streamlined raw material sourcing, and financial services, they're aiding diverse sectors, from small shops to large manufacturers, in digitizing and expanding effortlessly.

As a startup growing from 10 to over 150 team members across 15 cities in Pakistan within two years, Bazaar Technologies had successfully developed numerous internal systems. However, one crucial aspect yet to be executed was an automated invoice system. With this rapid expansion, the internal teams in the Commercial and Finance departments highlighted the pressing need for an automated invoicing solution to streamline their operations.

Key problems included:

Inaccuracies with Matching Invoices: with purchase orders became increasingly challenging due to inaccuracies in manual data entry processes at Bazaar Technologies. This led to discrepancies between invoices and purchase orders, disrupting reconciliation, causing delays, and impacting financial record accuracy as the company expanded
Manual Processes: The commercial and finance teams at Bazaar Technologies were heavily reliant on manual invoicing methods. Tasks were managed through Excel sheets, leading to time-consuming processes and a higher probability of errors.
Inefficiencies & Error-Prone: The existing manual system lacked efficiency, causing delays in processing invoices. Manual entry increased the likelihood of errors, leading to inaccuracies in financial records and impacting the overall operational workflow.
Lack of Automation: The absence of an automated system hindered scalability. As the company expanded, the manual processes became increasingly inadequate to handle the growing volume of transactions, causing bottlenecks and delays.

Bazaar's Optimization

Initiating with Focus Groups with the commercial and finance teams, a comprehensive understanding of their existing invoicing process was acquired. This process involved manual reception of supplier invoices, manual recording against multiple purchase orders in Excel sheets, and subsequent data uploading into the 'Nucleus Portal,' a shared platform across multiple departments within Bazaar Technologies.

Based on the feedback garnered from these sessions, a workflow was crafted to address their pain points and ensure data accuracy.

The Approach

The objective was to institute a three-way matching method aligning invoices with purchase orders. A pivotal factor driving this workflow automation was the need to streamline the invoice matching process. It aimed to replace the manual human verification process with an automated system that facilitated the seamless matching of invoices against corresponding purchase orders.

To facilitate this, the workflow was segmented into distinct stages, creating checkpoints for the invoice to undergo validation by both the commercial and finance departments. These stages were carefully designed to ensure a systematic and accurate verification process, reducing manual intervention and enhancing efficiency in matching invoices with purchase orders.

The Challenge

Process

Current Workflow of Manual Data Entry Process for Invoice

Painpoints

⚠️

Too many man hours tied

⚠️

High chances of error

⚠️

Too much manual Intervention

⚠️

Inaccuracies rate went up

Improved Workflow through Automation

Automated Three-Way Matching

Automated three-way matching expedites invoice validation by cross-verifying invoices, purchase orders, and receipts, ensuring accuracy and compliance. This process streamlines operations, reducing errors, enhancing efficiency, and enabling prompt resolution of discrepancies, bolstering financial control and compliance within the organisation.