Manufacturing Case Study: Learn How Jeter Helped Continental Paper Grading with Back-file Conversion
Continental Paper Grading’s accounts payable department had decided to convert to an electronic data system that enabled scanning of checks and backup paper documents for digital storage.
Because the conversion occurred midway through the year, files from January to August were not scanned into the system, resulting in a mix of paper-based and electronic files. In addition, the scanning process, while well designed, could not keep pace with the growing volume of checks and back-up documents that had to be entered daily into the system. Consequently, Continental Paper began to accumulate a backlog of unscanned files.
Business impact of these challenges
The mix of paper and electronic storage media from the first half of the year, combined with an ongoing backlog of more recent, unscanned files, impacted Continental Paper Grading in a number of ways, including:
- Decreased productivity resulting from staff taking time away from core business activities to search for back files
- Potential negative impact on Continental Paper Grading’s relationships with vendors, due to delays in responding to queries that required retrieval of processed checks and back-up documents
- Undue strain on scanning department, which was struggling to cope with the daily incoming flood of documents while trying to address a growing backlog
- Potential increase in staffing costs because of the persistent backlog, Continental Paper Grading was planning to hire at least one additional employee to help with the scanning process
- Potential negative impact on companys image should the IRS unexpectedly conduct an audit and find Continental Paper Grading’s recordkeeping system in a backlogged state
Jeter to the rescue
For help in resolving these critical business issues, Continental Paper Grading turned to Jeter, which promptly developed and delivered a two-pronged, progressive solution:
- Complete, fully-managed back-file conversion project with Jeter supplying all staff, supplies, equipment, and processes needed to convert accounts payable files, dating between January and August, from paper to digital format.
- Integration of imaging software into existing electronic data system to improve efficiency of scanning processes. As part of this implementation, Jeter designed a more streamlined scanning process and trained users on the application and production process.
Working out a solution
To determine the scope and nature of the problem, Jeter consultants met with Continental’s CFO. From the first meeting, says the CFO, he was impressed with how Jeter’s consultants took ownership of his organizations challenges, working not only with Continentals scanning department but also with the third-party software company that had written Continental’s accounting program.
”We told the Jeter consultants our problem and they came up with a process to deal with it and brought in the people and equipment to do the job,” recalls the CFO. ”I didn’t have to get involved at all, which I’m thankful for since I’m a CFO, not a records manager.”
Clearing out the backlog
To carry out the backfile conversion project, Jeter set up an onsite climate-controlled office space, where it installed three file preparation stations, one scan station, one quality assurance and index section, one station for boxing records, and one supervisor station. Jeter also brought in a scanner, three desktop computers, one Network Attached Storage Device, and several photocopiers.
A future-proof solution
As they assessed Continental’s scanning process, it immediately became clear to Jeter and Continental that the company needed more than a backfile and backlog conversion solution. It needed a long-term technology solution that would allows its scanning department to stay current with the daily influx of checks and documents. Without such a solution, Continental would quickly accumulate a new backlog of unscanned files.
Jeter recommended that Continental enhance their existing custom-designed electronic data system by adding imaging software. Installed as a network version on two stations, the new software would enable the stations to scan and index a combined monthly total of 25,000 images. More importantly, it would allow Continental to scan in large batches, and automate a number of manual tasks in the process. In addition to designing and implementing this solution, Jeter would also provide user training and support.
In less than a month, Jeter successfully converted 12,400 back files consisting of about 55,800 pages, from paper to digital format. It also converted its more recent backlog, bringing Continental’s scanning department completely up to date. With a new scanning system and process in place, Continental can now keep up with its daily check volumes. And the systems large image capacity means theres room to grow as Continental’s business continues to grow.
Enjoying the business benefits
By converting Continental’s accounts payable backfiles, and streamlining its check and document scanning process, Jeter helped Continental complete its transition from a paper-based to an electronic data storage and retrieval system. With files now stored in one consistent format and in one central electronic repository, Continental’s staff can spend more time on essential and productive activities and less on searching for information. Continental can also better satisfy their vendors and partners since the new and updated system has effectively shortened the response time on queries.
Another benefit from Jeters solutions? Continental is now in a constant state of readiness for random IRS audits. While it’s difficult to quantify all of the benefits Continental has gained and will continue to realize from Jeters solutions, they can identify yearly savings of at least $30,000—the annual salary Continental would have had to pay an additional scanning clerk.
And since the electronic files can now be sent to vendors and other parties by email, Continental is also spending less on paper, fax transmission and postage.
“We now have everything filed electronically, everything is easy to access and it was all done in a timely manner. Thanks to Jeter, we went from having a major problem to having a highly efficient and cost-effective solution.”