Genuine Parts Company Case

Abstract

Founded in 1928, Genuine Parts Company (GPC) is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. Services are provided throughout the United States, Canada and Mexico with a network of 2,000 operations. Within this paper I will be speaking about the operations and functions of the Accounting Shared Service Center. I will be discussing the different departments and their functions and the structural breakdown (Encyclopedia.com, 2011).

Genuine Parts Shared Services Organization Process

The working relationship vertical and horizontal associations between individuals and groups that exist within an organization affect how its activities are accomplished and coordinated. Effective organizing depends on the mastery of several important concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. Many of these concepts are based on the principles developed by Henri Fayol (Cliff Notes, 2011). Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as "organizational design" decisions (Robbins and Coulter, 1999).

GPC Accounting Shared Service Center is where the centralized accounts payable group is departmentalized by function and then on a customer centric bases. Within each group, specialists are assigned specific GPC locations so that one-to-one contacts can be developed and maintained. The A/P Management Group consisting of three individuals has varied experience with Genuine Parts Company from the District level to the Distribution Center to the A&DP Center a combined 50+ years of experience. On the Supervisory level, we have promoted from within the center, as well as seeking experience from the field level.

JDE Edwards group enter all invoices manually including phone, utilities, expenses, fixed recurring vouchers, e.g. rent, and contracts utility research and resolution reconciling intercompany transactions 50k expense invoices per month inventory payment group, inventory payables processing EDI and manual invoice balancing inventory receipt corrections and variance reporting EDI credit and manual credit processing (Legacy Napa DC's) 400 K Inventory Invoices per month (AuthorStream, 2010).

Payment/Statement reconciliation group monthly reconciliation and research for national vendors EDI 821 statements vendor past due calls and resolution vendor maintenance term verification vendor payments void and stop payments, check copies and remittance detail shared operations with accounts receivable, imaging and facilities human resources reception and mail services. Process improvements electronic processing inventory invoices early 2003 86% of invoices received EDI, currently 93%, expense invoices MCI, ATT, Verizon, Sprint, Cingular, Nextel Garnishments and Payroll taxes voyager fuel cards procurement transactions various intercompany billings(AuthorStream, 2010).

Imaging and retrieval system, Agilysys R-file, manager storage & retrieval software vendor statements, manually entered invoices, manual checks, W9's, leases, voided checks, intercompany billings, E doc flow software works in conjunction with R-file manager templates for predefined electronic routing of images g/l coding, review. Approvals and annotations built in features allow for tracking to ensure timelines of processing historical record retention and retrieval on-line viewing of images for GPC location review C.O.L.D storage for EDI documents (AuthorStream, 2010).

Vendor debit memo (VDM) process NAPA DC locations create VDM's VDM feed to accounts payable in nightly batch process VDM payment vouchers deducted based upon pre set payment terms deducted on remittance with reference to the VDM number vendor issues full credit & offsets with original VDM deduction vendor creates new debit/credit for discrepancies.

GPC Payable Process Flow

What vendors can do to help expedite the process provide EDI 857 invoicing to NAPA provide EDI 821 statements to NAPA issue full credit for VDM's and offset on vendor A/R create separate debit/credit memo's for VDM discrepancies improve vendor communications