IMPROVING THE PROCESS TO REDUCE BILLING ERRORS FOR INTERNATIONAL FREIGHT FORWARDERS : CASE STUDY OF ABC COMPANY

Abstract

This research attempts to: 1) investigate and analyze the problems in the billing process of international freight forwarders; 2) improve the billing process's efficiency; and 3) conduct a comparative analysis of errors and wait times prior to and subsequent to the billing system upgrade. We utilized a participatory action research (PAR) model with an integrated PDCA cycle that involves planning, doing, checking, and acting. The specific population consisted of five executives and employees from ABC Company. The research instrument was a structured interview conducted through a focus group discussion. The collected data was analyzed using a fishbone diagram to pinpoint the root causes of defects and failures and to explore improvement strategies for our processes and workflows. The quality control cycle was applied to plan, implement, gather results, and review the plan if the desired outcomes were not achieved. Four main problems were identified, including billing delays, inaccurate information dissemination by service providers, employee knowledge and experience deficit regarding bill verification, and lack of proper resources and processes. The problems that arise reflect the insufficient work efficiency of service providers, employees, and work systems. Therefore, we have improved the billing process by requiring the service provider to scan the draft bill and send it to the logistics staff for review. Upon validation, we will release the actual bill to the company. Finally, the company collects data to evaluate the improvements. It was found that errors in billing could be reduced by 49 percent, accounting by 92.45 percent, and the time required to pay service fees could be reduced as well. Using a waiting period of 3 days, the period decreased by 11 days, accounting for 84.62 percent, resulting in faster bill delivery. This improvement in the billing process not only reduces errors and increases work efficiency. But it is also a beneficial example of applying scientific principles to solving problems in organizations.