Interdepartmental collaboration in resolving account payable aging to suppliers electronic resource]

Date of Publication

2016

Document Type

Master's Thesis

Degree Name

Master of Business Administration

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Thesis Adviser

Tibon, Ma. Victoria P., Dr.

Defense Panel Chair

Teehankee, Benito L., Dr.

Defense Panel Member

Quero, Rachel A., Dr.
Cempron, Jaime, Dr.

Abstract/Summary

B/E Aerospace B.V. Philippine Branch is an aerospace company that has several workplace issues. In a manufacturing company, it is vital to have a good relationship with suppliers to secure reliable source of raw materials. The most common way to have a good relationship with suppliers is to show their value by paying them on-time, this is where the role of Finance enters in the scene of supplier relationship. Finance can determine which suppliers are being paid on-time and which are not and how far their invoice behind by payment date through the use of account payable aging report. The action research has defined mitigating issues that hold account payable team to endorse invoice for payment.

The first cycle of the action research was focused on understanding the process from creation of PO by purchasing department, receiving of actual quantity delivered, matching of invoice by account payable team then finally by treasury for disbursement. The AP Wednesday meeting was held including purchasing, warehousing and finance department, they are the collaborators in this research. The team appreciated the process and recognized each department’s limitation. It was discovered that both purchasing and warehousing department doesn’t have accessibility to each other’s transactions, to counter check the system input initiated. The team had identified the mitigating issues through finance’s ability to view transactions created by purchasing and warehouse department. The mitigating issues identified were resolve through an individual assignment. At the end of the first cycle, the collaborators had exerted dedication to fix the mitigating issues and pursue immediate processing of invoice for payment. However, upon evaluation of the actions done in the first cycle, the team discovered that there a need to prioritize based on the type of suppliers the company has. Seeing greater chance in improving further the aging payables to suppliers, the second cycle of the action research was done.

The team agreed to develop a revised strategy by prioritization. The second cycle was focused in the segregation of aging account payable by third party suppliers and intercompany suppliers. Following the same format and framework, the team collaborately resolved mitigating issues prioritizing the third party suppliers. With the interventions done, an improved aging account payable was achieved at the end of second cycle. This action research not only provide good supplier relationship but it also opened the willingness of the personnel to communicate within departments, allows personal and professional growth through acquisition of the various learning from the collaborative activities done in the research journey.

Abstract Format

html

Format

Electronic

Accession Number

CDTG006436

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

1 computer optical disc ; 4 3/4 in.

Additional Files
CDTG006436_F.pdf (2771 kB)

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