A global insurance firm had strengthened and expanded its services in 140 markets through mergers and acquisitions.
But over time, finance and procurement operations had become inefficient and cumbersome. Processes in both areas weren’t integrated and legacy systems didn’t communicate with one another, making it difficult to collect payments, manage vendors, track spending, control costs—ultimately inhibiting growth.
A new Chief Financial Officer (CFO) had a bold plan: to build future-ready business operations that would drive efficiencies and provide the business with real-time insights and agility to drive growth. Based on his experience, he knew that digital, data-driven finance and procurement would improve decision-making and help employees not only work smarter and faster, but also better serve clients. Additionally, this approach would unlock new paths to long-term growth and create shareholder value.
Using Accenture’s SynOps platform, the insurer created data-driven operations for finance and procurement that connects intelligent technologies, talent, and data and analytics to drive business value and growth.
Order to cash
Using data and analytics, the team addressed billing and collections inefficiencies. New processes and intelligent insights helped confirm policy coverage earlier and revealed how a billing schedule could be modified to collect payments earlier and faster—giving finance more time to spend processing invoices and collecting late payments.
The procurement function leveraged an intelligent, data-driven operating model, i.e. closed loop spend management model, to help manage the source-to-pay lifecycle. They introduced analytics to establish a new purchasing policy, streamlined category management processes and launched three new tools to help drive performance improvements.
A valuable difference
By transforming finance and procurement operations to be data-driven, automated and digital, the insurer’s employees can work smarter, scale faster and be more productive. Within one year the team:
Reduced days sales outstanding (DSO)—clearing $19M in aged intercompany receivables, eliminating $100M in debt and improving cash flow by $300M.
Improved the accuracy of on-time vendor payments by 99% (up from 77%).
Saved $13.5M and is on track to achieve $50M in savings over the next 5 years.