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TOKOPEN
PROVIDES DAIRY CREST CUSTOMER SERVICE CREAM
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Using TokOpen to reconcile Goods Received Notes and Proof
Of Delivery documents with sales invoices
Dairy Crest, the UK's leading chilled dairy
foods company - www.dairycrest.co.uk - is now using Tokairo's
TokOpen document management and workflow system to automate
its former paper-based delivery note procedures.
These were previously used in deliveries
to customers throughout the country from 20 UK sites, involving
over 17,000 delivery notes being issued every week. The new
TokOpen system - www.tokairo.com - is automating the reconciliation
of customers' Goods Received Notes with Dairy Crest's Proof
Of Delivery documents (PODs) - saving time, ensuring documents
do not get lost, resolving customer queries more rapidly and
improving cash flow.
As a result, Dairy Crest's financial department
is gaining a firmer grip on its debtor list, is improving
awareness of how it is meeting its own key performance indicator
standards, and is able to provide enhanced customer service.
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Strongly focused on building leading
positions in branded and added-value markets across
the dairy sector and investing in technology and industry-leading
facilities to create competitive advantage, Dairy Crest
has demonstrated rapid and profitable growth since its
London SE float a decade ago.
The company operates in two divisions:
Foods and Dairies. The Dairies division incorporates
liquid products, household and ingredients. Altogether
the company employs over 7,000 staff across 21 sites
throughout the UK and Ireland.
Central to the business is an efficient
and rapid delivery service - taking highly perishable
dairy products to countless wholesale and retail outlets
across the country. A key issue here is the reconciliation
of customers' Goods Received Notes and the supplier's
Delivery Notes - to ensure that a correct invoice can
be raised that the customer will accept.
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causes a mismatch between the two is likely to result
in queries and delayed payment. Typically in such cases,
a normal 30-day credit can be transformed into a 90-day
debt, involving multiple phone calls, absorbing resource
that is often out of all proportion to the amount involved,
and frequently causing grave customer dissatisfaction.
Until recently, delivery documentation
for Dairy Crest's 17,000 deliveries a week from 20 depots
across the country was handled by a traditional, paper-based
manual system. Drivers made their delivery and returned
to their depots with the counterfoil of a form signed
by the customer to confirm receipt. Mistakes, disputes,
misunderstandings, lost documentation and anything else
that might delay payment had to be resolved by accounts
staff - over the phone, via fax - often taking an inordinate
amount of resource, and always extending the payment
time.
Having made the decision to automate
the process, Dairy Crest embarked on the selection of
a solution. "The process
was very comprehensive," says Dairy Crest
project manager Alan Goodall. "Eventually
we narrowed it down to 10 prospective suppliers - meeting
those who would be involved in implementation and visiting
reference sites. The decision to go with Tokairo was
a combination of demonstrated product, personalities
and the quality of solution visible at the reference
site offered".
"To be fair, there
are many products in the market place which provide
a basic archive and retrieval system - what was unique
about Tokairo was the enthusiasm and willingness to
understand what we needed and then tailor the system
to address those needs. This culture was evident from
reference site visits where it was obvious that the
TokOpen users were not working around a third party
system, but that the system had become an integral part
of their business".
"The Proof of Delivery
process is very simple in principle, however with 17,000
deliveries being tracked every week from our factories
and distribution centres to major customers, it is easy
to lose track of paperwork which is relied upon to ensure
our invoices are paid".
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"TokOpen
allows instant access by Customer Services and Credit
Control of all paperwork relating to an order which
allows issues to be quickly rectified. This provides
a substantial cash flow boost to the business,"
says Goodall. "In addition, Tokairo developed and
tailored the system to provide electronic reading of
customer documentation, such as goods received notes.
This then allows the system to electronically compare
what the customers say they receive on their systems,
what our systems say we sent and if any alterations
were noted on the paperwork at the time of delivery".
"This automatic
matching of paperwork removes the need for manual
checking and allows us to proactively address shortages
before the invoice is even sent. The improved accuracy
results in improved cashflow as invoices are less
likely to be challenged. At the same time there is
an improvement in customer satisfaction and customer
good will".
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Where discrepancies are identified, they are
automatically flagged for action to investigate and amend
the invoice. Other documents, including customer claims for
damaged goods are also scanned into the relevant delivery
folder. TokOpen's workflow functionality is used to actually
manage the business process - making adjustments on the Dairy
Crest systems and avoiding the need to print documents.
TokOpen highlights the relevant deliveries
to the appropriate customer service staff. The objective is
to ensure that when the invoice is issued, it is correct and
will not be contested by the customer. The system also ensures
that all delivery documents are available across the business.
If an invoice is challenged, authorised staff anywhere in
the country - even when they are mobile -can search and retrieve
an invoice online using a standard web browser.
"We are currently
extending the system to include all of our generated invoice
paperwork to be archived in the TokOpen system which will
allow instant access for Credit Control and Customer Services
when dealing with issues. For example, a telephone enquiry
would previously very likely have resulted in a paper chase.
There would have been investigation and decision-making as
to why issues were not picked up and how to resolve them".
"Often, this might take
place over a period of days. With TokOpen we should be able
to resolve the problem while the customer is on the telephone
making the initial enquiry. We are also considering extending
the use of the system to incorporate incoming deliveries and
invoices which would auto-match raised purchase orders and
again reduce the need for paper chases," says Goodall.
"Implementation took
longer than anticipated, mainly due to us adopting an attitude
of 'right first time', rather than 'get it out there' and
then snagging. This resulted in a longer pilot than planned
for, and more refining, development and change than originally
envisaged. All through this process Tokairo bent over backwards
to assist and fit in with our business priorities and objectives
- at times the process was frustrating when issues became
non issues, while other problems appeared. This was a learning
curve for Dairy Crest - and without a full-time dedicated
project team it was inevitable that there would be resourcing
issues for analysis and testing".
Currently Dairy Crest has around 20 scan users
feeding the system, and another 50 users who use the output
of the system for Customer Service or Credit Control function.
"The system has met the
defined requirements - and more. It has been able to meet
many new requirements and changes introduced as experience
and understanding of the potential was recognised by key users.
The areas where we have had most issues are in that of bespoke
development which sits around the core product. Such issues
have always been addressed in a timely and professional manner.
On the whole we are delighted with the system," says
Goodall.
"One of the major components
in making this project come together was the people and personalities
involved. The can-do attitude and the understanding nature,
indeed hand holding that was required to clarify requirements
and implement changes was a key factor in the success of this
project".
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Tokairo Ltd
20 Linford Forum, Rockingham Drive, Linford Wood,
Milton Keynes, MK14 6LY, UK
Tel: +44 (0) 1908 695 569 | Fax:
+44 (0) 1908 696 961 | E-mail:
info@tokairo.com
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© Copyright 2004 Tokairo
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