Case study - 2

JILFORA CONSULTING

Establishing Financial Control for a Small Retail Service Provider

Client Overview

A small but growing retail service provider that partners with various retail stores to offer in-store promotions, merchandising, and staff training.

Background

As a dynamic service provider in the competitive retail sector, the client's success depends on agility and strong relationships with both their field and retail partners. However, their internal financial processes were not keeping pace with their business growth. The small accounts payable team was overwhelmed, leading to operational friction, financial leakage, and reputational risk that threatened the company's expansion.

Challenges

The client's core financial operations were undermined by two primary, critical issues:

Chronic Payment Delays: Payments to freelance promoters, temporary staff, and vendors were consistently late. This was caused by an ad-hoc, disorganized payment system that lacked a predictable schedule, leading to frustrated partners and damage to the company's reputation.
Costly Duplicate Payments: The lack of systematic checks and balances resulted in multiple instances of the same invoice being paid twice. These duplicate payments represented a deficit in the company's bottom line and consumed significant time to investigate and recover.

Implementation Approach

A straightforward, high-impact approach was designed to bring immediate stability and control to the client's payment process without overburdening the small team:

Diagnostic & Workflow Analysis
Process Re-engineering
Tool Implementation & Checklist Creation
Hands-on Training and Go Live

Solution

The solution was focused on discipline, control, and process clarity, addressing the core problems with three targeted initiatives:

Duplicate Audit Check: A mandatory, multi-point check was instituted before any payment run. This involved cross-referencing invoice numbers, vendor names, and amounts against a historical payment ledger. This policy audit step was designed to serve as a powerful safety net for each new potential duplicate before payment was released.
Weekly Payment Batch Run: The chaotic, ad-hoc payment process was replaced with a predictable weekly payment batch run. All expected invoices were accumulated during the week and processed in a single, scheduled batch. This eliminated the constant pressure of urgent payment requests and allowed the team to work more methodically.
"Maker-Checker" of Transactions: A strict maker-checker (or two-person validation) policy was enforced. The team member (the "maker") is responsible for entering the payment transaction, while a second, senior member (the "checker") must independently review and approve it before it can be processed. This segregation of duties immediately reduced the risk of errors and duplicate entries.

Client Testimonials

"We were constantly fighting fires. Our partners were unhappy about late payments, and we were losing money to duplicates. The new process has brought a sense of calm and control. The weekly payment run is predictable, and the maker-checker system gives me confidence that every payment is accurate. It's a simple change that has had a huge positive effect on our business and our stress levels."

— Owner, Retail Service Provider

RESULTS & IMPACT

Operational Results

Eliminated duplicate payments completely, achieving a 100% reduction within the first month
Reduced the time spent processing payments by 50% by moving to a batch process
Increased on-time payment performance to over 80%, significantly improving partner and vendor satisfaction

Business Impact

The weekly batch run provided a clear presentation of weekly cash outflows, making cash flow forecasting easier and more accurate
Consistent, on-time payments rebuilt trust with their network of field professionals, making the company more attractive to partners
The elimination of duplicate payments directly protected the company's financial resources
Established a disciplined and scalable payment process, enabling them to focus on growing their business with confidence