Shared Services In AP/AR Yields 6-Month ROISource: OPEX Corporation
Founded in 1896, Paxton Media Group (PMG) is a privately-held media company based in Kentucky. PMG currently serves 9 states with a total of 32 daily newspapers, 30 weekly newspapers, numerous specialized periodicals, and an NBC-affiliated television station in Paducah.
Seeking to consolidate its multi-site advertising databases, PMG initiated a process to improve both its accounts receivable and accounts payable processing through the use of new shared services technology. Managing advertising receivables across multiple locations had proven to be daunting and costly, while on the payables side, PMG recognized that an opportunity existed to enhance cash flow by handling invoices more efficiently.
Despite the challenges involved, PMG recognized that substantial gains could be made by consolidating subscriber payments, accounts payable processing activities, and advertising payments from 32 individual sites into one. There was no denying the potential for substantial payback if the right shared services solution could be found.
Additionally, it was clear to PMG that consolidation would help eliminate the risks involved with transporting a significant number of documents, not to mention the risks associated with having multiple people across multiple locations performing multiple mail opening and scanning processes.