How Dell’s A/P Dept. Avoided Paper Invoice Deluge From JIT System
September 2002
Conventional wisdom says just-in-time inventory may be a great concept for a company intent on efficiently managing its stock, but it makes life difficult for the accounts payable department responsible for paying all those just-in-time invoices. Or does it? Consider the example of Dell Computer Company, which found itself ordering certain parts as frequently as 12 times a day. The accounts payable department was inundated with paper invoices. A nifty solution however, was devised for the company by one of its vendors, GE Capital. While GE didn’t pocket one cent of the savings it enabled Dell to find, it reckons that the goodwill it generated will translate into additional sales.
2009
