Wednesday, March 19, 2014

Cash Management Process Automation by Mynd Solutions

The Background

Mynd Solutions Finance and Accounting (F&A) Outsourcing has pioneered finance and accounting solutions by integrating domain expertise, global delivery network and technology solutions. Mynd assists in identifying, transitioning, transforming, executing and continuously adding value to finance and accounts processes through a low-cost Business Process Outsourcing (BPO) services model, without compromising on quality and compliance. We believe in delivering the right information at the right time.
Mynd operates in the following Major areas in Retail Segment

·         DSR Audit & Cash Pick up
·         Store/ Warehouse process Audit
·         Inventory Audit
·         Cash Management

Mynd has provided exceptional service delivery for several retail clients in the past few years in different service domains. Clients include leading Indian and Global brands in Apparel, Restaurant and Fast Food Chain, Online retail Industries etc.


Petty Cash Process
The Client:

The client is an Indian e-commerce company, founded in 2007, and headquartered in BangaloreKarnataka. It is considered as the e-commerce company that made online shopping popular in India. This popular Indian online retailer offers books, apparels, fashion wear, accessories, electronics, and appliances among many other offerings.

 Cash Management Process Undertaken by Mynd for Client:

Mynd Solutions started Cash management process for the above client in May 2012. In this assignment, Mynd is processing & managing their petty cash expense & related Imprest management across all delivery hubs in India. We started this journey with 70 hubs in May-12 and are currently handling 200 + Hubs.

   What’s Unique About this Assignment?
Ø  Managing the Cash Processes for the largest e-commerce Company in India.
Ø  First-ever e-commerce client of Mynd Solutions
Ø  Project was initiated in a very short span of time.
Ø  Dynamic nature of client requirements
Ø  High volumes of cash covered in the assignment

Initial Challenges witnessed during this project:
Ø  Several software changes were made as per client’s exclusive requirements
Ø  Automations had to be introduced in many areas
Ø  Software Training was to be provided to Pan India Hub Managers
Ø  Streamlining client’s conveyance expense was a major challenge, which is 80 % of total hub expenses

Normal SLA Delivery Provided to Client:
Ø  Processing expense vouchers within 7 working days with 100 % accuracy.
Ø  Daily MIS reporting on volume of vouchers created by hubs, processed by Mynd team, pending for approval at different levels along with the ageing of pending vouchers.
Ø  Weekly MIS reporting & analysis on different expenses.
Ø  Timely updation of portal which includes creation of new hubs, cash feeding to hubs & addition / edition of users 
Ø  Providing Journal Voucher of all approved expenses & provisions in the desired format for uploading in their Oracle software as month end reporting
Ø  Generation of Petty cash Certificate by Monthly
Ø  Software Training to Hub In charge.
Ø  Helpdesk & Query Resolution

The Extra Mile Efforts made by Mynd Retail Accounting Team to Improve Service Delivery:
Ø  Understanding the nature of the client’s business
Ø  Spending time in the delivery hubs to understand the ground level activities and Challenges
Ø  Identifying the areas where automation may be introduced
Ø  Identifying the leakage points

Process Automation and Benefits

Several improvements & automation features have been introduced in the Petty Cash process by Mynd, since the beginning. The major automation features introduced by the Mynd team include-
Ø  Weekly Expenses reports: We implemented various real time automated reports in the software which ultimately reduced manpower efforts & chances of any errors.
Ø  System validation & supporting attachment : We made expense supporting’s attachment mandatory in the software so that processing team is not dependent on hard copies to process the voucher & accordingly processing time may be reduced.
Ø  New Conveyance Screen: We introduced a new voucher screen for biker’s conveyance expense wherein the users mention opening & closing kilometers of the bikers & rest all conveyance calculation is done by the software on the basis of per K.M. rate (already fixed in the software). This automation simplified the Hub Manager’s task, as they don’t have to prepare manual excel file. It also helped Mynd team to process the voucher quickly with enhanced control.     

Benefits Derived from Process Improvement:

Ø  Faster processing of Claims:  Through regular MIS compilation, process set up & Client support, Mynd was able to reduce the cycle time by 10 days.
Ø  Automation established in:-
·         Conveyance Claim Process
·         Real time reporting
·         System Validations
Ø  Improved Controls in Place: Controls have increased because decision makers can take decision quickly by seeing real-time reports online
Ø  Reduction of working capital: It also helped the client to reduce their working capital lying within the hubs in the form of Imprest balance in all hubs.
Ø  No follow up with Hubs for Claims hardcopies: Our process improvement & automation reduced dependency on hard copies of the vouchers and their receipt.
Ø  Real time cash balance : Our process provided online tool to user to view individual / consolidated petty cash balance online in real time, so that decisions on further cash feeding can be taken effectively & quickly

Client Rewards Mynd’s Efforts

After successful implementation & running of petty cash process for over 1 & ½ years we have been awarded many more projects by this esteemed client.  The summary of the projects won by Mynd are enumerated below-

Ø  One time projects
        Data conversion from Navision to Tally under letsbuy.
        Transporter POD’s Verification project
Ø  Regular projects
        Hub Audits
        Warehouse  Process Quality Audit
        Inventory Verifications
        Vendor Reconciliation
        AR Reconciliation
        Bank Reconciliation
        Training ( Under Implementation)




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