Achieving Significant Savings in Procure-to-Pay at a Technology Company
Cost reduction of over $8M in Procure-to-Pay processes for the global technology company in less than one year.
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.
BPM-D enables effective alignment of the core BPM capability while leveraging processes to effectively identify and prioritize transformation initiatives to achieve immediate improvements and enable knowledge transfer to team members.
Challenge & Opportunity
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.
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.
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.
- Process Improvement: Fast and pragmatic work with process models to identify improvement opportunities and related actions in including procure-to-pay.
- Business Process Repository Set-up and Incremental Roll-out: Set up a business process repository (Signavio) — Create the repository content in a re-usable format for the different improvement projects to provide immediate value and transparency across project teams.
- Systematic Knowledge Transfer: Systematic knowledge transfer and educational activities with face-to-face trainings combined with E-Learning components to facilitate and expedite enterprise-wide roll out.
- Process Governance Organization: Define and implement simple process governance organization — collaboration model, roles and responsibilities, governance processes, and the integration of process and data governance.
- BPM Playbook: Develop a practical BPM Playbook to sustain the BPM capabilities — key topics include methods and guidelines, repository management, governance, the approach to projects, the value realization, the process intelligence, and intelligent process automation.
A compelling, fully costed business case that yielded the following benefits: