Returned Invoice Processing for Cummins Engine via Digital Mailroom
Cummins Engine is a global manufacturer known for innovation in diesel and alternative fuel engines, with a footprint in over 190 countries. As a large-scale operation, Cummins depends on speed and precision in its Accounts Receivable (AR) processes to maintain healthy cash flow and customer service standards.
However, undeliverable invoice mail created recurring delays—requiring manual sorting, follow-up, and reissuance. To address this issue and modernize their AR operations, Cummins partnered with Imaging Office Systems (IOS) to implement a secure, scalable Digital Mailroom solution tailored to returned invoice processing.
The Challenge
Returned invoices due to invalid mailing addresses disrupted Cummins’ AR operations. Each piece of returned mail had to be manually opened, assessed, and re-entered into the AR workflow—a time-consuming process that introduced delays, data errors, and reduced cash flow efficiency.
Key issues included:
- Payment Delays from stalled invoice delivery
- Manual Handling and internal routing of physical returns
- Address Errors requiring time-intensive research
- Lack of Visibility into returned invoice volumes and trends
Cummins needed a centralized, automated solution that could streamline returned invoice processing and reaccelerate the AR cycle.
Project Requirements:
- Centralize all undeliverable invoices through a dedicated PO Box.
- Scan all returned invoices with high image quality for digital reprocessing.
- Transmit digitized files using encrypted, secure file transfer protocols (SFTP).
- Provide a consistent format for easy intake and immediate AR team follow-up.
- Ensure the workflow could support fluctuating mail volumes without bottlenecks.
How Cummins Benefited from Working with Imaging Office Systems
“Partnering with IOS for this project has helped us solve a problem with a very efficient solution.”
Kim Truitt
Information Management Specialist, Cummins Inc.
The Solution
IOS implemented a fully managed Digital Mailroom service, structured to handle returned invoices quickly and securely:
- Mail Redirection to IOS
All non-deliverable invoices were rerouted to a dedicated IOS-managed PO Box, reducing the internal burden on Cummins’ teams. - Envelope Opening & High-Resolution Scanning
IOS personnel manually opened each envelope, scanned the invoice contents using production-grade equipment, and organized them for processing. - Secure File Transfer via SFTP
All scanned invoices were transmitted back to Cummins daily via secure SFTP in a predefined digital format for seamless intake. - Accelerated AR Follow-Up
Cummins’ AR team used the digitized invoices to quickly identify address errors, update records, and reinitiate collection efforts—accelerating payments and restoring workflow continuity.
The Bottom Line
Cummins Engine transformed a recurring operational bottleneck into a fast, reliable process using IOS’s Digital Mailroom services. Key outcomes included:
- Faster Payments
Reduced turnaround on returned invoices helped improve cash flow velocity. - Streamlined Operations
Manual steps were eliminated, and returned mail was processed daily. - Better Data Accuracy
Digital visibility allowed the AR team to spot and correct address issues quickly. - Secure Document Handling
All transmissions were encrypted and compliant with internal data protection standards. - Scalable Workflow
The system now supports high-volume invoice returns without adding labor or delay.
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