Background

A global logistics company with revenues of $7bn was arranged into local subsidiaries that followed their own processes, had their own tools, and communicated poorly with each other. They needed an improved P2P process that would be followed by all local branches and business units, allowing for transparency, sharing of best practices, and integration with existing systems (JDE).

Action

 We used our analytical expertise to reconcile spend data from multiple sources (operational, financial, and ERP) and multiple regional entities. Finally, our client had a clear picture of their spend. We were then able to identify areas for improvement and develop a consistent and transparent transaction process. With the support of the board, we then ensured that regional entities, who were generally resistant to central initiatives, implemented and followed the process. Our international team was able to identify the needs of each major regional branch, and the challenges they faced, and facilitate communication across the organization, succeeding where the central board had been unable to in the past. With our expertise in analytics, the client was able to consolidate regional data sources and systems into a global picture of their spend.

Outcome

A centralized and clear P2P process resulted in lower costs per transaction by an average of 40% and improved acquisition times by a factor of 3. Whereas in the past each local branch had its own processes and supply base, now they were able to truly work as a global company. With the insights provided by our data mining and analysis, the client was able to benchmark both suppliers and regional branches. Best practices from one region could be implemented globally, and best in class suppliers were expanded to service new regions.

Metrics

160 countries, 7 Months project, $1.5bn Spend, 12 saving ongoing