Custom Goods Logistics nearly doubles invoice processing

Vroozi said Custom Goods Logistics has moved its purchasing and accounts payable workflows onto its platform, a change the logistics provider said has nearly doubled invoice processing throughput.

Custom Goods Logistics runs 36 warehouses nationwide and employs more than 600 people. The Carson-based third-party logistics group provides warehousing, transportation, fulfilment and US Customs examination services.

Previously, each facility handled purchasing and invoice approvals separately, leaving the finance team without a consistent process across the business. Accounts payable staff also entered invoice data into NetSuite manually, slowing processing and making it harder to track liabilities across the company.

Under the new setup, purchasing at all locations now runs through a single system. Employees buy from more than 100 supplier catalogues, while spending thresholds and approval routes are set for each user so purchases follow the same rules regardless of which warehouse raises them.

On the accounts payable side, automated data capture now handles much of the invoice entry work. The system also connects to NetSuite, allowing approved invoices to move through to payment without staff re-entering the same information.

Productivity gains

The shift has led to a marked change in output. Staff now process 6 to 7 invoices an hour, up from 3 to 4 previously.

As a result, a four-person team now handles the same accounts payable and procurement workload that previously required eight people. Custom Goods Logistics said the resulting annual savings are in the six figures.

The change has also improved reporting for the finance operation. Accruals are now based on data held in the system rather than information gathered from email exchanges with facilities and vendors.

"We were able to streamline and create efficiencies and realize about half the cost in that department," said Ziyad Zreik, Director of AR/AP at Custom Goods Logistics.

"It's a game-changer on the reporting side. We're able to pinpoint to the penny how much needs to be accrued, instead of sifting through emails," Zreik said.

Broader use

The logistics company is also extending the system into other parts of its finance and operations processes. It is automating data capture on equipment lease invoices, including serial-number tracking for forklifts and other warehouse equipment used across its sites.

It has also completed a multi-month project to add part-number tracking across the platform, giving finance and operations teams more detail on what is being purchased and where it is going.

The changes reflect the complexity of managing indirect purchasing and supplier invoices across a distributed warehouse network. Standardising approval routes and consolidating purchasing data can give finance leaders tighter oversight of costs while reducing the manual work needed to process invoices and close accounts.

For logistics groups with multiple sites, the challenge is often less about transaction volume than the number of local processes that develop over time. Separate buying methods and approval practices can leave head office teams piecing together commitments and accruals after the fact, particularly when invoice information sits in email chains or local records.

Custom Goods Logistics said its previous setup created exactly that problem, with facility-by-facility purchasing and invoice approval processes limiting visibility. The move to a single procure-to-pay system is intended to give the company one record of purchasing activity and a more consistent route from requisition through approval to payment.

Vroozi describes itself as a provider of procurement, spend management and accounts payable software for mid-market and larger organisations. Its platform is designed to digitise purchasing and invoice management workflows.

Zreik also commented on the work to extend the system's controls and tracking functions. "Anytime I email them, they're extremely quick with their responses, and they always jump on a call no matter what," he said.

"We wanted to implement part numbers, more guardrails, more safety nets, and more trackability, and they were very helpful throughout," Zreik said.