Intelligent finance delivers top quartile results
SynOps for finance is helping a global logistics company to provide its customers better service at lower cost.
Where speed matters most
In an industry characterized by razor-thin margins, a global logistics company was continually challenged by ever-growing demands from customers for better service at lower cost, so operating as efficiently as possible was critical for its continued growth.
The company saw an opportunity to improve the finance organization’s process efficiencies and the productivity of its finance employees. Their goal was ambitious: to move the organization from its middle-of-the-pack standing to top-quartile performance in terms of cash flow, cost management, talent management and financial controls.
With few defined workflows in place, the management of global finance processes was inconsistent and inefficient. The client believed that transforming and streamlining finance operations would not only improve the organization’s ability to serve its 17 geographic clusters and its global customers but would also dramatically reduce costs and ultimately drive shareholder value.
A global hub for process improvement centralized processes, bolstered compliance and drove best practices across geographies without language constraints.
Cash flow improved by $53M, past due accounts receivable reduced from 29 percent to 12 percent, time to resolve disputes was cut from 20 to 17 days and on-time payment accuracy increased from 23 percent to 63 percent.
The client gained more than $5 million in profit and loss (P&L) savings, decreased invoice processing time from 15 days to just one, and dropped process cycle time between 50 percent to 75 percent across processes.
Finance sets new standards for operational excellence
Powered by intelligent finance, the company now stands apart in its industry because of the efficiency gains in end-to-end finance processes.
Achieved top-quartile industry performance with a 36 percent increase in efficiency and productivity.
Reduced business costs by more than 30 percent.
$100 million in working capital improvements were achieved, equivalent to an annualized P&L impact of $18 million.
A new focus on business metrics and standardization, and a secondary focus on automation are making finance processes more efficient, reliable and compliant. With its lean and more flexible approach to service delivery and access to talent with deep finance and technology skills, the finance organization can be a true partner to the business, supporting the enterprise with the nimbleness and flexibility that today’s disruptive business environment requires.