Summary
Cost reduction of over $8M in Procure-to-Pay processes for the global technology company in less than one year.
Organization Background
The technology company set-up a new business process management (BPM) department in an effort to support its enterprise-wide transformation initiatives. The key goals were reduction of cost and cycle time for target initiatives which included procure-to-pay, supply-chain planning and customer order management. Procure-to-pay was the first target initiative for the new BPM unit.
Business Challenges and Opportunities
The technology company is a complex organization, with multiple locations, in various regions with countless business units and departments. Due to the complexity, enterprise-wide business transformation was already launched with limited movement. So, it was later decided to set up the new BPM unit to speed up progress and ultimately drive the transformations.
The new process transformation unit needed to show fast impact while building sustainable process management capabilities. The BPM capabilities would then need to be rolled-out enterprise-wide.
To effectively accelerate the process improvement for the various initiatives, new digital process tools were leveraged to connect stakeholders and project teams across different business units in different locations and countries.
Solution
A pragmatic approach was applied for the analysis of the existing processes and design of the to-be process which reflected the identified improvement, process standardization and automation opportunities. BPM strategy and capabilities were developed in parallel to enable effective knowledge transfer and sustainability.