Client Success in Operations:
Cross Functional Cost Control
The Challenge: Cost Control at Fortune 200 firm
The firm's fastest growing division faced rapidly escalating cost threatening its viability. Managers were constantly surprised by late bills, unexplained charges. Lacking insight, Managers were unable to control costs.
Rapid Solution
Procure to Pay Process Flow: Our Analysis indicated extensive master data errors, lack of staff training and complex ERP work flow. As open purchase orders by cost center were not there, financial visibility was limited. Hence late or incorrect cost settlements were discovered months later as errors could not be identified nor fixed mid process.
We identified the gap, streamlined the ERP workflow and corrected master data errors. We assisted developing necessary financial reports including purchase order, maintenance and project work orders to drive visibility. Errors were reduced up front and fixed mid process. Costs settled correctly, increasing financial transparency and actionable insight.
Work Force: We developed training guides based on the ERP process map. We then trained Supply Chain, Finance, Operations staff and Managers over 4 months.
Finance Stewardship: We revamped their accrual process. Cost lag shrank from months to 3-4 days. We also developed a Business Intelligence portal for Operating leaders and Managers to have actionable insight from customized live and reports for their own needs. They could see their spending and also eliminate waste and unnecessary purchases proactively.
Result
Operating costs were reduced by 15% saving $25+ Million annually for 4+ years even as the division grew multi-fold over the period.