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Streamlining Expense Reports for a Metal Manufacturing and Recycling Company

A professional illustration of a manufacturing facility with automated expense management processes.

Industry

Manufacturing

CHALLENGE

A metal recycling company struggled with an outdated, paper-based expense reporting system. This process was inefficient, with each report taking over 38 minutes to prepare and mail, costing an average of $14.52 per report. Additionally, the reimbursement process was lengthy, taking 12 business days.

Results

We introduced an efficient digital system that cut the time spent on expense reports from 38 to just 7 minutes, reduced processing time, and eliminated mailing costs. This saved the company over 290 hours and more than $22,000 annually, achieving a first-year ROI of 155%.

167 hr
Annual Time Saved for Sales Representatives
124 hr
Annual Time Saved for Management
$22k
Total Annual Cost Savings
154%
First-Year ROI
picture of an office, with a few people working at desks

Background

JIF Inc, a prominent player in the metal recycling and manufacturing industry, faced significant challenges with their expense reporting process. Their 12-person remote sales team relied on an outdated, paper-based system that was both time-consuming and costly. Our firm was engaged to modernize their expense management workflow, resulting in substantial time and cost savings.

The Challenge

JIF Inc's expense reporting process was riddled with inefficiencies:

  •  Sales representatives spent an average of 38 minutes per report (18 minutes
    preparation, 20 minutes mailing)
  •  Mailing costs ranged from $8 to $22 per report, averaging $14.52
  •  Processing time averaged 8.5 business days, with reimbursement taking 12 business
    days
  •  Management review was time-intensive, with the COO and CFO spending 21 minutes
    per report 
  •  AP clerks manually entered data into the ERP system, taking 9 minutes per report
  • Certified mailing of reimbursement checks cost an additional $8 per report

The Solution

After a thorough assessment, we recommended implementing SAP Concur and integrating it with JIF Inc's existing Microsoft Dynamics ERP system. Our solution included:

  1. SAP Concur implementation for 14 users (12 sales reps, 2 managers)
  2. Custom integration with Microsoft Dynamics ERP
  3. 20 hours of consulting services

The Results

The new system dramatically improved JIF Inc's expense management process:

  • Report preparation time reduced from 38 to 7 minutes
  • Processing time decreased from 8.5 to 2 business days
  • Reimbursement time shortened from 12 to 4 business days
  • Management review time reduced from 21 to 7 minutes
  • Eliminated mailing costs for both submission and reimbursement
  • Automated ERP integration, saving 9 minutes of AP clerk time per report

Quantifying the Benefits

Time Savings

Annual time saved per sales representative:

  • Report preparation: (38 - 7) minutes × 27 reports = 837 minutes
  • Total annual time saved for 12 sales reps: 10,044 minutes (167.4 hours)

Annual time saved for management:

  • COO: (12 - 4) minutes × 27 reports × 12 reps = 2,592 minutes
  • CFO: (9 - 3) minutes × 27 reports × 12 reps = 1,944 minutes
  • AP Clerk: 9 minutes × 27 reports × 12 reps = 2,916 minutes
  • Total annual administrative time saved: 7,452 minutes (124 hours)

    Total annual time saved: 292 hours

Cost Savings

Direct costs eliminated:

  • Mailing expense reports: $14.52 × 27 reports × 12 reps = $4,704
  • Mailing reimbursement checks: $8 × 27 reports × 12 reps = $2,592
  • Total direct costs saved annually: $7,296

Labor cost savings (based on salaried positions):

  • Sales reps: 167.4 hours × ($60,000 / 2080 hours) = $4,827
  • COO: 43.2 hours × ($250,000 / 2080 hours) = $5,192
  • CFO: 32.4 hours × ($225,000 / 2080 hours) = $3,510
  • AP Clerk: 48.6 hours × ($60,000 / 2080 hours) = $1,404
  • Total labor cost saved annually: $14,933

    Total annual cost savings: $22,229

Return on Investment (ROI)

First-year costs:

  • SAP Concur: $15 × 14 users × 12 months = $2,520
  • Custom integration and Consulting Services: $6,200
  • Total first-year investment: $8,720

    First-year net savings: $13,509
    First-year ROI: 155%
    Three-year ROI: 479%

Conclusion

Our engagement with JIF Inc resulted in a highly successful transformation of their expense management process. The implementation of SAP Concur and its integration with their existing ERP system led to significant time and cost savings. With a first-year ROI of 155% and a projected three-year ROI of 479%, the project not only paid for itself quickly but also continues to deliver substantial value to JIF Inc.

The new system has streamlined operations, improved employee satisfaction by expediting reimbursements, and freed up valuable time for both sales representatives and management to focus on core business activities. This case study demonstrates the power of modernizing financial processes and the tangible benefits that can be achieved through strategic technology investments.

Disclosure

While this case study is based on a real engagement, some figures have been estimated to provide a clear understanding of the improvements and benefits realized. Additionally, the name of the company has been changed to protect the client's confidential information. This case study is intended for illustrative purposes only and should not be used as a definitive guide for similar implementations.