Managing the full lifecycle of a utility invoice and the services that represents multiple vendors is a complicated and cumbersome task. Ensuring that the invoices are received, entered into the accounting software and then paid on time can be a struggle, when many vendors allow only 10 or 15 days for invoice payment to be received.
A nationwide facility maintenance company with over 500 service locations tapped RadiusPoint to assist with their Energy Sustainability project that included bringing their utility services and invoices under one umbrella to handle the full lifecycle of the invoice from receipt to payment. Their Accounts Payable team managed over 1,300 invoices per month and struggled to stay on top of getting the invoices into their payment system for timely payment. The optimization portion of the invoice management suffered because the team did not have the correct data to be able to obtain quotes for more cost effective services.
Focusing on the manual processes is the first area of improvement and this involves breaking down each invoice in line item detail. This allowed for robust and detailed reporting showing the actual kWh’s and therms that needed to be analyzed on a monthly basis. In addition, the monthly audit ensures that any overcharges are identified and disputed and the invoices are paid on time to avoid any disruption of services.
There were several areas of optimization that involved identifying:
- Locations in deregulated states
- Existing contracts
- Deposit information that may be held for each account.
Utilizing ExpenseLogic, RadiusPoint’s proprietary software, the team was able to make quick work of the inventory on the 1,300 invoices. Being able to have the actual kWh and therm information for each meter made obtaining bids for the deregulated states much easier. Having the contracts that were already in place allowed for full visibility when they were attached to each meter number within ExpenseLogic. Also, being able to have a running total of deposits that were being held and the eligible release date by meter number made their annual deposit true-up a breeze.
On a monthly basis the Client receives a report that outlines each location by physical address and meter number with the actual kWh’s and therms used by that meter, along with the previous rate and the new rate with the savings shown by location. The reporting in ExpenseLogic provides granular detail that allows the Client to make decisions about a location based on factual and detailed information that is gleaned from the invoice.
RadiusPoint was able to move 150 locations to contract rates and will providing ongoing management of the usage and contracts to ensure savings. Other locations that were already under contract are being monitored for usage and will move to the available lower rates upon contract expiration. This client had over $40K in savings so far and will continue saving as RadiusPoint analyzes the services on an annual basis.
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