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DESIGN ∙ TRANSFORM ∙ RUN
www.genpact.com/home/solutions/finance-accounting
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
ACTIONS
EXECUTE
ACTIONS
EXECUTE
ACTIONS
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
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
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
EXECUTE
ACTIONS
EXECUTE
ACTIONS
EXECUTE
ACTIONS
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
3
3
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
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
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)
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
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.
Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube.
© 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

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Analytics-driven order management drives customer loyalty

  • 1. DESIGN ∙ TRANSFORM ∙ RUN www.genpact.com/home/solutions/finance-accounting 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 ACTIONS EXECUTE ACTIONS EXECUTE ACTIONS
  • 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 EXECUTE ACTIONS EXECUTE ACTIONS EXECUTE ACTIONS 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 3 3
  • 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. Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube. © 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