Patient: A pharmacy chain that grew from humble beginnings to become the largest behavioral health pharmacy provider in the country with 125 full-service pharmacies in 31 states and the District of Columbia. On July 15, 2014, the company made plans to merge with another pharmacy chain that also provides services for behavioral health. The merger would cause the company to double in size.
Symptoms: The pharmacy chain had been utilizing a one-person AP staff who had a manual and undocumented AP process. After the merger was solidified, they went through a transition in staff and two AP specialists were hired to keep the department running smoothly. The undocumented process made it difficult to transfer the knowledge of the manual AP procedures to the new hires.
Diagnosis: With the merger approaching fast, it was important that the AP procedures be safely stored and documented in a computer system. The company decided to purchase a document management solution. Prior to implementing it, they used manual processes. Invoices for more than $500 were emailed to be approved by store managers. Printing, scanning, emailing and filing invoices decreased the AP department’s efficiency and made it difficult for them to keep track of where invoices were in the approval process.
A document management system would help them decrease the number of manual processes they had to endure. With a paperless solution, they would be able to enforce approval rules and avoid mistakes caused by the manual processes. They would no longer needed to print and file invoices, saving both time and paper.
Treatment: With their new document management solution integrated with their Microsoft Dynamics GP system, managers have the ability to see pending invoices and approvals for their specific locations. They can also search all invoices for their specific location, increasing transparency.
The company originally had the goal of automating 50 percent of their invoices but, with a document management solution, they exceeded their goal and has been able to automate 100 percent. Additionally, the company that they will merge with on Jan. 1 has also been 100 percent automated after the databases were merged in November.
The newly-combined company has also been able to save money on staffing. By automating their AP department, they were able to double in size but keep the same number of AP employees that they had before the merger because their document management solution has taken on much of the workload.