How Mobil shed the paper‐work hassle: Re‐engineering way of making invoices disappear

Abstract

Purpose

The purpose of this article is to demonstrate that significant improvements through business process re‐engineering can still be achieved after the implementation of enterprise resource planning systems.

Design/methodology/approach

This paper is based on a case study of the purchasing and accounts payable functions of Mobil Oil Australia Limited, undertaken well after the implementation of the off‐the‐shelf enterprise resource planning system, SAP.

Findings

Significant benefits were achieved in the purchasing and accounts payable functions, via a focus on best practice and radical process improvement. Invoices and invoice processing were largely eliminated. Check usage was reduced by 87 percent and the staff paying accounts cut by almost 75 percent.

Practical implications

Companies can leverage existing, often substantial, improvements in installed systems to further improve their processes and increase the return on those investments.

Originality/value

To demonstrate that business process re‐engineering can achieve dramatic improvements in cost, quality, service and speed even after an enterprise resource planning solution has been implemented.

Citation

(2006), "How Mobil shed the paper‐work hassle: Re‐engineering way of making invoices disappear", Strategic Direction, Vol. 22 No. 2, pp. 18-20. https://doi.org/10.1108/02580540610644078