[White Paper] Speed and Accuracy Deliver on the Promise
 

[White Paper] Speed and Accuracy Deliver on the Promise

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Petroleum marketers are taking advantage of technology to automate or otherwise streamline several aspects of their business. So it is not surprising they are welcoming the electronic Bill of Lading ...

Petroleum marketers are taking advantage of technology to automate or otherwise streamline several aspects of their business. So it is not surprising they are welcoming the electronic Bill of Lading (BOL) for accurate invoice processing.

The BOL supersedes the delivery receipt used in verifying where a delivery was made and how much commodity was dropped, as well as providing the information needed for inventory adjustments. The manually prepared delivery receipt too often has errors that result in significant rework. For example, incorrect identification of the supplier likely results in error in the cost or price of the delivery and necessitates time-intensive correction.

The BOL reliably reports the supplier, products purchased, quantity of gallons pulled and terminal — all vital data in determining how much is owed to which supplier and the value of the fuel involved. Electronic BOLs — often accessible within minutes of the load being lifted at the terminal — further improve business by automating and streamlining accounting processes. They make possible justification of the quantity invoiced with that delivered, as well as capture of correct valuation, all in real time. This capability eliminates errors common in manual processes and results in faster, accurate invoicing that ultimately improves the marketer’s cash flow and profitability.

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[White Paper] Speed and Accuracy Deliver on the Promise [White Paper] Speed and Accuracy Deliver on the Promise Document Transcript

  • Speed and Accuracy Deliver on the Promise August 2011 / White paper by Cathy Duncan Make the most of your energy SM
  • Summary Executive summary ..................................................................................... p 1 Introduction ................................................................................................. p 2 Delivery receipt ............................................................................................ p 3 Bill of lading ................................................................................................. p 4 Conclusion .................................................................................................. p 5
  • Improved cash flow via electronic bills of lading Executive summary Petroleum marketers are taking advantage of technology to automate or otherwise streamline several aspects of their business. So it is not surprising they are welcoming the electronic Bill of Lading (BOL) for accurate invoice processing. The BOL supersedes the delivery receipt used in verifying where a delivery was made and how much commodity was dropped, as well as providing the information needed for inventory adjustments. The manually prepared delivery receipt too often has errors that result in significant rework. For example, incorrect identification of the supplier likely results in error in the cost or price of the delivery and necessitates time-intensive correction. The BOL reliably reports the supplier, products purchased, quantity of gallons pulled and terminal — all vital data in determining how much is owed to which ­­ supplier and the value of the fuel involved. Electronic BOLs — often accessible within minutes of the load being lifted at the terminal — further improve business by automating and streamlining accounting processes. They make possible justification of the quantity invoiced with that delivered, as well as capture of correct valuation, all in real time. This capability eliminates errors common in manual processes and results in faster, accurate invoicing that ultimately improves the marketer’s cash flow and profitability. Improved cash flow via electronic bills of lading White paper on Invoicing Speed and Accuracy | 01 View slide
  • Improved cash flow via electronic bills of lading Introduction Over the past year, a number of petroleum marketers have spent significant effort improving the logistics side of their business. A fair majority now monitor inventory levels through automated processes to determine the optimum time to deliver fuel and avoid run-out. Others have invested in sophisticated on-board truck hardware and software for communication, optimizing drivers, trucks or common carriers. When deployed correctly, both areas have shown some real return on investment. But the heavy lifting isn’t over when the fuel is delivered and “post delivery” improvements are drawing some real attention as marketers are making a real push to gain greater efficiency. Marketers looking for the next big wave of improving profitability are drilling down now on getting the details right in the final phases of their fuel transactions. Processing an invoice may sound simple, but if the details aren’t perfect, there can be a cascading impact on all concerned parties. Two key documents control the accuracy of those details: the delivery receipt and the bill of lading. White paper on Invoicing Speed and Accuracy | 02 View slide
  • Improved cash flow via electronic bills of lading Delivery receipt Delivery documents are generated by the driver or Marketers are discovering that equally important carrier and enable billing and accounting staff to (perhaps more so), is the bill of lading. The Bill of verify where a delivery was made and the number Lading (BOL) is the only document that can be of gallons that were dropped. Now they know reliably used to determine the accurate gallons who and what to invoice. If it is a company-owned pulled, the supplier, terminal and actual products retail outlet, they know how many gallons to add that were purchased. It’s the real driver of what to that location’s inventory and reconcile that all is is owed to the supplier, the price of fuel for the in balance. invoice and the value of the fuel being placed in the tanks at a retail location. Unfortunately, the driver doesn’t always get the details correct. While the chance of error on where the delivery was made is low, the chance of transposed gallons, incorrect products, the wrong supplier or terminal on a delivery document is too often at an unacceptable rate. When any of these go wrong, the true amount of re-work to correct these transactions can be surprising. In a simple example, driver paperwork is processed but the wrong supplier is on the paperwork. Perhaps it is the original supplier the driver was supposed to use, but they were out of product and he had to use a different one. When accounting processes the paperwork using an incorrect supplier, it is highly likely that the price is not the same. This results in either a customer billed at the wrong price or inventory at the store being costed at the wrong value. This error often doesn’t come to light until the real supplier invoices your company and the mistake is uncovered. Hours of research and correction time later, the transaction is finally right but with a delay in collecting from the customer — which impacts cash flow. White paper on Invoicing Speed and Accuracy | 03
  • Improved cash flow via electronic bills of lading Bills of Lading Marketers are discovering that equally important (perhaps more so), is the bill of lading. The Bill of Lading (BOL) is the only document that can be reliably used to determine the accurate gallons pulled, the supplier, terminal and actual products that were purchased. It’s the real driver of what is owed to the supplier, the price of fuel for the invoice and the value of the fuel being placed in the tanks at a retail location. The availability of electronic bill of lading data has more than tripled over the past few years and is often accessible within minutes of the load being lifted at the terminal. These electronic BOLs help automate and streamline manual processes, while improving cash flow and profitability. Marketers are using them to eliminate the errors in delivery info, shorten the time it takes to accurately invoice customers and speed collection of their receivables. Common carriers are also using them to ensure that the information collected for their drivers is accurate as well. Finally, retailers are using them to validate not only that what they are being billed was actually delivered to their stores but also to capture the right valuation improving store reporting and profitability. And even better, each are using them to present more understandable documentation to their staff, their customers or to archive for when the outside auditors need instant access. This new wave may be just the one you’ve been waiting for. White paper on Invoicing Speed and Accuracy | 04
  • Improved cash flow via electronic bills of lading Conclusion Utilizing an information management system or service that creates electronic Bill of Lading documents reduces the manual linking between suppliers and downstream marketers and retailers; as such, it is the logical next wave in improving the supply chain. Electronic BOLs eliminate costly paper handling and inevitable errors associated with manual re-entry. As a result, hours a day are shaved from accounting processes, invoicing is faster and profitability is improved. White paper on Energy Efficiency | 05
  • ©2012 Schneider Electric. All rights reserved. Schneider Electric USA 9110 West Dodge Road Omaha, NE 68114 Phone: 1-800-391-1175 Fax: 1-402-255-8125 http://www.schneider-electric.com August 2012