Drive Financial achieves success with SourceNet’s accounts payable processing service.

by Leon Busch, SourceNet, Michele Rodgers, Drive Financial

Drive Financial Services, LP (Drive), is a Dallas-based national consumer finance company engaged in the purchase, securitization, and servicing of more than $1 billion in retail installment contracts originated by automobile dealers throughout North America. In 2004, Drive instituted a corporate strategy to outsource many non-core business functions—a key component of which was accounts payable.

COMPANY OBJECTIVE
“The objective of outsourcing was not so much to cut expenses on the individual outsourced tasks but to change the focus of the company leaders from cost savings and personnel management to revenue growth and corporate strategy,” said Michele Rodgers, Drive’s controller.

Drive was looking for a company that would provide a good price point and enhanced process monitoring, while allowing Drive to maintain control. Offshore processing was not an option. The customer’s challenge was to outsource its accounts payable processing to focus on its core business competencies.

A team of experts from SourceNet Solutions (SourceNet) collaborated with the Drive financial staff to evaluate their accounts payable practices, workflows, and supply base characteristics. SourceNet customized a solution based on Drive requirements and business policies, which included the centralized receipt and imaging of its invoices, routing for coding, and invoice approval using an easily accessible and powerful workflow management tool. The solution also includes customer and supplier invoice status inquiry and a myriad of payables operational and analytical reports.

THE OUTCOME
In the end, Drive selected SourceNet’s accounts payable processing service, which utilizes best-in-class processes and procedures coupled with the latest technology solutions, including imaging and automated workflow. The streamlined accounts payable processing approach translated into greater operating efficiencies and time and cost savings for the customer.

This approach enabled the following:
• Access to state-of-the-art imaging workflow, payment, and e-commerce tools for online invoice coding and approval;
• Reduced process operations costs and sustained performance levels as their processing volume grows. Since October 2004, Drive’s disbursement volume has increased 40 percent while overhead costs have decreased four percent;
• Migration of more paper-intensive payables to an electronic environment through consistent electronic imaging of invoices;
• Highly-effective reporting and tracking;
• A fully staffed, professional customer service center for quick resolution of inquiries;
• Support group assistance for escalating exception resolution and providing risk control and key client interface and support;
• Predictable staffing levels with reduced risks and personnel liabilities;

“SourceNet’s weekly performance report provides Drive with a powerful tracking tool that measures daily performance, which translates into more predictable operating costs,compares performance to contracted service level agreements, and allows Drive the flexibility to meeting our changing business needs,” Rodgers stated.

During the transition of outsourcing Drive’s accounts payable department, SourceNet collaboratively developed a plan that would ensure non-disruptive and high-quality operation. As a result of the experienced internal staff and smooth transition of outsourcing, Drive continued to meet all of its vendor liability payments without comprising performance.

“By outsourcing our AP processing to SourceNet, we were able to “piggy back” off of many of SourceNet’s existing process flows and leave the experts do our AP processing for us,” added Rodgers.