More Related Content Similar to Analytics-driven order management drives customer loyalty (20) More from Genpact Ltd (20) Analytics-driven order management drives customer loyalty1. DESIGN ∙ TRANSFORM ∙ RUN
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Order Management reimagined through a lean digital
architecture: Genpact Intelligent OperationsSM
Gianni Giacomelli
Senior Vice President
Head of Genpact Research Institute
Chief Marketing Officer
EXECUTE
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2. DESIGN • TRANSFORM • RUN 2© 2015 Copyright Genpact. All Rights Reserved.
We design, transform and run the intelligent enterprise
operations that strengthen our clients’ competitiveness
About Genpact ► Overview
*US$22B is a cumulative figure since 2006
*Cumulative figure since 2006
Whatwedo
Help leaders of some of the largest enterprises
…design, transform and run
…business-critical operations including the very complex
and industry-specific
Howwedoit
Smart Enterprise Processes (SEPSM) crystallizes
operational and domain expertise, rigor inherited from GE
Achieve Intelligent OperationsSM through Systems of
EngagementTM, Core IT and Data-to-Action AnalyticsSM
The strength of a large company, but flexible solutions; top
management directly involved with clients
Unbiased and agile solutions limit upfront costs, reach
results faster and enhance adaptability
Our impact
We make clients
more competitive:
• More efficient,
effective
• Able to better
manage costs,
risks, regulations,
and support growth
The results:
US$22B*+ of impact
for 800 global clients
3. DESIGN • TRANSFORM • RUN © 2015 Copyright Genpact. All Rights Reserved. 3
Customer experience, perfect order, cost and compliance
challenges call for more robust order management process
Order Management ► Challenges
Customer
experience
• Growing customer demand for quality and just-in-time inventory,
increased competition (e.g. private labels from retailers), diverse channels
• Increased use of supplier scorecards by customers to measure
performance
Perfect order
• Difficulty to coordinate and synchronize end-to-end supply chain
processes
• Insufficient market demand / forecast accuracy
• Insufficient cross-functional collaboration
• Poor supplier performance (quality and on-time delivery)
• Integrating agile, fast-paced, and emerging technologies with legacy
systems
Compliance, cost
and efficiency
• Systems/processes not designed to detect fraud or waste
• Escalating IT costs – disparate systems maintained to cater for multiple
delivery channels
• Escalating labor costs and supply chain costs
• Lack of standardization due to regional/business unit requirements
• Lack of integration between supply chain and product development
4. DESIGN • TRANSFORM • RUN 4© 2015 Copyright Genpact. All Rights Reserved.
Intelligent operations sense, act and learn from their actions.
They become continuously more efficient and effective
CFO ► Solutions ► Intelligent operations
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Sense
Bank front office operation: Delays in
processing specific transactions is proactively
fed to branch clerks or contact center agents
Order to cash and credit risk: Risk profile of
debtors is dynamically adjusted for regional or
sector specific risk of default and provided to
collections groups or asset managers
1
1
2 Execute
Order to cash: Collection or investigation cases can be dynamically
allocated to right-skilled and appropriately located individuals based
on their complexity - and previous history of performance by type of
collector type
Bank front office operations: Inbound client interaction (e.g. query)
routed to optimal channel (self service, level 1 clerk, expert) based
on effectiveness and cost derived from data driven experience
2
Learn
Fresh data on what results were achieved is compiled, visualized,
and modeled against how the work was done. Controlled
experiments are run to continuously test better execution strategies
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5. DESIGN • TRANSFORM • RUN © 2015 Copyright Genpact. All Rights Reserved. 5
A perfect order every time: Genpact end-to-end order
management solution embraces digital to achieve impact
Order Management ► Solution
• Order entry and fulfillment
• Pricing, contract management, master data management
• Allocation and product supply
• Logistic administration
• Inventory optimization
• Better and faster orders through automated, no-touch order entry
• Point solutions for order visibility proof of delivery management,etc
• Data massaging and integration services e.g. vendor managed
inventory, global available to promise alerts etc.
• Order and customer portal
• Proactive controls on end-to-end order management leveraging a
supply chain control tower solution
• Order management analytics including on-time-delivery/perfect order
index, network optimization, forecasting modeling; target operating model
design
• Genpact Smart Enterprise Process (SEPSM) framework for order
management to pinpoint areas of opportunity
• Define, measure, plan and improve with Genpact’s customer experience, sales
experience, complexity, and risk framework
Customer
Experience
Order
management
analytics
Visualization and
supply chain
control tower
Order management
automation – better efficiency
and perfect order leveraging
technology
Order Management Business Process
Management services – better
efficiency and perfect order
6. DESIGN • TRANSFORM • RUN © 2015 Copyright Genpact. All Rights Reserved. 6
Revenue acceleration
Order Management ► Case studies
SolutionChallenge Impact
• High variability in customer
order patterns impacting
revenue/cash flow and
inventory carrying costs
• Manual receipt of purchase
orders from customers leading
to low first-pass yield
• High percentage of back-order
rescheduling accuracy errors
• Lack of workflow prioritization
and reporting tools
Large
European
brewer
• Used analytics to derive
customer patterns and initiated
proactive customer follow up
resulting in reduced inventory
and faster revenue generation
• Built a new web-order platform
and increased customer
electronic data interchange
adoption to drive efficiency and
accuracy
• Developed a process to track
and manage accuracy of back
order rescheduling
• $10.5 million annual revenue
acceleration
• $5 million annual reduction in
inventory and forecast gaps
• Over delivered telesales yearly
shipment revenue target
by ~33%
• 10-15% increase in first-pass
yield
• Unable to identify potential
issues related to global order
fulfillment, such as the risk of
partial shipments or missing
committed delivery dates
• The supply chain team were
unable to map production to
specific customer orders and
identify risks
• The team could not take
mitigating actions and was
unable to achieve revenue
projections with certainty
Ironshore, a
U.S.
commercial
property
and casualty
specialty
insurer
• Risk classification: Classified
fulfillment risks, identified high-
priority areas, focusing on
orders in the current quarter,
orders with material issues or
inventory shortages, and
resource alignment
• Process centralization:
Standardized data collection
across regions, implemented a
bolt-on tool to track fulfillment
risk
• Revenue acceleration of
$75 million in a year
• Increased risk visibility by
65%
• Significant working capital
impact
7. DESIGN • TRANSFORM • RUN © 2015 Copyright Genpact. All Rights Reserved. 7
Productivity gains and enhanced customer experience
Order Management ► Case studies
SolutionChallenge Impact
• Highly manual, unsustainable
order entry process with only
2% of orders transmitted
electronically
• High cost of processing
orders ($16+/order) due to non-
standard activities, numerous
manual touches and longer
processing time
• Product changes not updated
resulting in outdated prices
being used
Leading
North
America’s
food and
beverage
company
• Developed a web portal tool to
automate manual orders and
create order entry process
standardization
• Pertinent real time customer
information through web portal
• Order entry process
sustainability resulting in a more
positive customer experience
• Export customers sales order
automation rose from 2% to
99% in less than a year
• Cost of order processing
reduced by 33% due to process
standardization and automation
• Improved invoice accuracy due
to real time product/pricing
updates available on portal
• Customers provided self-
service access to order
information 24/7
• Complex processes with
multiple legacy technology
systems and tools
• 70 - 80% of processing time
spent on data validation and
seeking exception approvals
• Multiple order input formats
with incomplete information
leading to 19% request
rejections
World’s
largest
greeting
card
company
• Implemented automation
solution using the cloud-based
technology of OmPrompt
• Standardized the order input
templates
• Designed intelligent business
rules for validation of requests
and management of approvals
and exceptions
• Compliant flow, fully validated
orders to client’s ERP system
• 70% productivity benefit
through automation
• >90% reduction in the lead time
i.e., from 30 min to <3min
(average)
8. DESIGN • TRANSFORM • RUN © 2015 Copyright Genpact. All Rights Reserved. 8
Customer experience management
Order Management ► Case studies
SolutionChallenge Impact
• Large and highly complex
customer base with significant
number of sub-processes
causing multiple manual
touches driving low first-pass
yield, low productivity and high
cost of processing
• Order fulfilment challenges with
product availability and
incorrect forecasting resulting
in 33% of orders being
incomplete
• High number of variations and
exceptions in processes
lacking proper metrics and
analytics.
• Inadequate process
documentation, policies,
governance structure, cross
functional linkages and
performance measurement
framework
Leading
North
America’s
food and
beverage
company
• Re-engineered end-to-end,
order to cash processes,
addressing upstream
standardization, automation
and process simplification to
drive productivity, and reduce
complexity and overall cost of
processing
• Transformed using Genpact’s
proprietary CSCR framework
to standardize, automate,
simplify, measure to elevate end
customer and sales
experience, reduce process
complexity and risk to
increase topline growth, and
reduce cost of processing
orders
• Enhanced governance and
controllership by reinstating
policies and process adherence
driving optimal process
performance, reducing cost of
operations and increase wallet
share
• Topline growth: 1% revenue
increase for the customer base
where CSCR has been
implemented
• Perfect order: Decrease
revenue dilution by reducing
order cut rate by 10% - benefit
of $34.6 million
• Cost productivity: 33%
reduction on cost of
processing orders from $16+ to
$11.00 million
• Cost productivity – Direct plant
savings - $4.3 million delivered
9. DESIGN • TRANSFORM • RUN 9© 2015 Copyright Genpact. All Rights Reserved.
About Genpact
Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex
and specific to a set of chosen industries. The result is advanced operating models that foster growth and manage cost, risk, and compliance across a range of
functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our
Smart Enterprise Processes (SEPSM) proprietary framework helps companies reimagine how they operate by integrating effective Systems of EngagementSM,
core IT, and Data-to-Action AnalyticsSM. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have grown to over
67,000 people in 25 countries with key management and a corporate office in New York City. Behind our passion for process and operational excellence is the
Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years.
For more information, visit www.genpact.com.
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© 2015 Copyright Genpact. All Rights Reserved.
Genpact Research Institute
The Genpact Research Institute is a
specialized think tank harnessing the
collective intelligence of Genpact – as
the leading business process service
provider worldwide - its ecosystem of
clients and partners, and thousands of
process operations experts. Its
mission is to advance the “art of the
possible” in our clients’ journey of
business transformation and adoption
of advanced operating models.
www.genpact.com/research-institute