c value - pub.ro

VALUE Creating

T H R O U G H B P M

ABOUT

ABOUT Enterprise Concept was founded in 2005, based on the beliefs of the

founders that they can help others create value and change the way of

doing business. In order to set up the practice of those beliefs, the

founders, management and their followers embraced three major

innovative concepts: Decision Management System, Business Process

Management and Business Performance Management. All of them are

related to the new design of business logistics; therefore we consider that

our expertise is pure art.

The practical aim has been to bridge the gap between management

consulting and technological execution.

WE CREATE VALUE, POWER AND

PERFORMANCE.

We consider every single client an outstanding asset

and a pillar of our common development.

25 companies have chosen us

HISTORY

HISTORY D E V E L O P I N G M I N D S E T S

2005: CONSULTING 2012: SCIENCE 2014: DESIGN

We are committed to the human-centered approach to innovation that draws from our mission to integrate the needs of people, the possibilities of technology, and the requirements for business success.

2013: QUALITY

ORGANISATIONAL

CAPACITY

IMPACT W E C R E A T E I M P A C T T H R O U G H P R O C E S S M A N A G E M E N T D E S I G N

Enterprise Concept brings together a team of 32

Business - IT Certified Senior Consultants, trained

to provide Strategic Consulting Services throughout

all stages of implementation: from Business

Analysis, to Business Process Optimization and

Change Management.

CREATING CONDITIONS

FOR PROFITABLE

CUSTOMER BEHAVIOUR. Gathering 9 years of hands-on experience, the

company has evolved into a team of consultants

excelling at redesigning business models that

generate added value - by positioning technology

as the basic structure when creating BUSINESS

LOGIC.

EMBEDDING DESIGN

THINKING IN BUSINESS

1. CREDIT MANAGEMENT

2. RESTRUCTURING

UNDERPERFORMING ASSETS

3. CLAIMS MANAGEMENT

4. GARNISHMENT MANAGEMENT

5. CUSTOMER ONBOARDING

INCREASING VALUE

THROUGH OPERATIONS

IMPACT ON VALUE A C A S E B A S E D P E R S P E C T I V E

The Concept of Decision and its

THE OPERATIONAL

DECISION

Value is commonly related to:

1. COSTS (objective & subjective)

2. REVENUES (objective & subjective)

3. PERCEPTION (subjective)

THE CONCEPT OF VALUE

THE OPERATIONAL

DECISION

IMPACT ON VALUE

• Based on the group EBIDTA targets;

• The relationship between management and

shareholders;

• Limited and mostly irrelevant.

• Create and enforce the normative framework for the operational layers;

• The creator of the transactional costs and its components (enforcement

costs and measurement costs)

1. THE STRATEGIC DECISION

3. THE OPERATIONAL DECISION

2. THE ENFORCEMENT DECISION

MIN 60 %

“The increasing computing capabilities and the complexity have changed the structure of power inside business organizations.” ❞

DECISION: THE PRACTICAL LINKAGE BETWEEN BPM AND VALUE

• Small and many decisions happened in the normative framework;

• Responsible for the subjective (sunk & opportunity) and objective (costs rationally recorded) costs.

• Relevant as its cumulative effect

IMPACT ON VALUE 10 – 15 %

IMPACT ON VALUE MAX 20%

THE OPERATIONAL

DECISION

OPERATIONAL DECISION

ITS NATURE, IDEAS AND EVOLUTION

Since early 1990 the operational decision-making has changed its nature.

The classical theories for analyzing the operational decision-making

process such as expected utility theory (Blaise Pascal) and prospect

theory (Tversky & Kahneman) cannot address the new operational

decision-making. Because its normative structure, the operational

decision-making has become an institution. It can be analyzed using the

costs theories such as transaction cost theory (Coase & North).

1. A CHANGE IN NATURE

The behavioral aspects that should be addressed are the free-rider

problem and procrastination.

2. BEHAVIOURAL ASPECTS

The time and information represents the environment where the decision

takes place.

3. EVOLUTION

These aspects have important practical consequences.

The operational aspects of the organizational structure are the places where the routine processes happen (standardized, scientific or random). These processes dramatically influence the organization performances and its positioning the competition framework.

THE OPERATIONAL

DECISION

CASE-BASED

DECISION-MAKING

ARHITECTURE

ERP BI

SOFTWARE BEHAVIOUR

BPM

&

BEHAVIOUR

COST

TIME

EVENT

DATA

INFORMATION

DECISION

C1

C2

C3

C4

T1 T2 T3 T4

METHODOLOGY

1.THE DECISION AUDIT

2.THE MATURITY AUDIT

3.SUBJECTIVE & OBJECTIVE COSTS AUDIT

4.DESIGNING BPM (USING BPMN)

5.REDESIGNING THE DECISION NODES

6.TECHNICAL IMPLEMENTATION.

PRACTICAL ASPECTS FOR VALUE-BASED BPM

METHODOLOGY

1 2 3

4 5 6

DESIGN C R E A T I N G & C A P T U R I N G V A L U E

The concept of

DESIGN THINKING

WHAT IS DESIGN?

DESIGN THINKING

problem finding problem solving

doing the right thing doing the thing right

value creation + value capture

WHY DESIGN THINKING? Fundamental cultural differences...

DESIGN THINKING




DESIGN THINKING = VALUE

The Efficiency Movement: Outsourcing, Total Quality Management (TQM),

Six Sigma, Lean Manufacturing, Maximizing

Return on Assets, Corporate Redesign, Market

Segmentation, Licensing, Line Extensions &

Diversification, etc.

DESIGN THINKING




DESIGN THINKING = VALUE

Design is the one business discipline

whose primary concern is innovation. When design thinking becomes a core

competency, companies become more

nimble in the face of rapidly changing

markets and new competition.

DESIGN THINKING



value creation + value capture = advantage

DESIGN THINKING = ADVANTAGE

DESIGN THINKING

Technology Business

People & Human Values

Process Innovation: Manufacturing

Emotional Innovation: User interaction

and interface,

Relationships,

Marketing

Functional Innovation: Organizational Behavior

Marketing & Branding

DESIGN

THINKING AND

VALUE

CREATION

DESIGN THINKING

MRI Scan

Technology

Adventure

Frame

Cost Avoidance

Less sedations,

more patients

DESIGN

THINKING AND

VALUE

CREATION

DESIGN THINKING

Image Credit: Stanford Design School

DESIGN THINKING:

A PARADIGM

SHIFT

TECHNOLOGY A N A C T I V I T Y B A S E D P E R S P E C T I V E

Business Process Management

TECHNOLOGY

optimize

control

standardize Processes are modeled and executed using dedicated technologies, in order to

orchestrate business activities and obtain relevant key performance indicators. Thus:

1. Real time visibility and control over data and business frameworks is achieved.

2. BPM manages existing systems and processes throughout the organizations IT

infrastructure using non-intrusive integration methods.

3. Using connectors, data I/O with legacy systems is performed synchronized or

unsynchronized enabling information consistency and structure throughout the

entire IT architecture.

4. Agility and adaptability in a controlled framework are enabled towards efficiently

adapting to new business strategies and goals.

Technology Dimensions

TECHNOLOGY

CONSULTING

1. Design the processes To-Be - flows, roles responsibilities

2. Design the models: user interfaces, reports

3. Intermediary and final Presentations & Validations of the concept with

the stakeholders

4. Training (concepts)

5. Design and validation of the business case (expected benefits)

TECHNOLOGY 1. Design to-be models: database structure and information flows

2. Simulations, mock-ups (forms)

3. Technical validation

PROJECT

MANAGEMENT

1. Planning and managing activities and project team

2. Documentation project activity

3. Notices towards stakeholders and team

4. Validate the design and functional specifications documents

5. Validation Planning and Implementation Planning - Milestones, Work

Breakdown, Risk Mitigation Plan, Change Management Plan

ACTIVITIES AT THE DESIGN STAGE

TECHNOLOGY

Charts future processes (optimized) and compared with the existing ones

New IT architecture

Roles and responsibilities in

the process

Optimized business rules /

new

Measurements - Estimates

of the future performance &

process level metrics

Implementation Plan

Risk Management Plan

Change Management

The proposed general

model

Business Case updated:

estimating benefits

Prime subscrise 2010

pondere

in total 2011

pondere

in total 2012

pondere in

total ∆ 2011/2010 ∆ 2012/2011

clasa 1 4,532 0.2% 2,225 0.1% 563 0.0% -51% -75%

clasa 2 197,309 8.3% 188,042 9.7% 463,867 27.5% -5% 147%

clasa 3 -65,369 -2.7% 168,667 8.7% 207,073 12.3% -358% 23%

clasa 4 1,996,577 83.7% 1,445,608 74.8% 874,976 51.8% -28% -39%

clasa 5 169,555 7.1% 99,104 5.1% 109,396 6.5% -42% 10%

clasa 6 68,812 2.9% 19,113 1.0% 8,256 0.5% -72% -57%

clasa 7 12,866 0.5% 9,437 0.5% 24,287 1.4% -27% 157%

Total 2,384,282 100% 1,932,196 100% 1,688,418 100% -19% -13%

Activitate

Activitate

Activitate

Activitate

Activitate

Regulă

Iniţializare

Rezultat

Resurse

Resurse

Resurse

ResurseResurse

output/input

input

Company website

BPM Engine

SecurityCommunication Engine & DMS

Service Oriented Architecture / ESB*

WEBPortal

Accounting CRM App1 App2

Legacy systems

DESIGN & MODELING BUSINESS PROCESSES - RESULTS

TECHNOLOGY

ACTIVITIES IN THE IMPLEMENTATION PHASE

CONSULTING

1. Intermediate validations - user interface - technical

2. Elaboration of documentation: manual test scripts, support training

3. training users

4. Internal testing

TECHNOLOGY

1. Application development

2. Intermediate validations/ early prototyping

3. Intermediate and final tests

4. Integration with existing applications, configuration settings

5. Post Go-Live support

PROJECT

MANAGEMENT

1. Planning and managing project activities and team - see Plan

2. Documenting project activities

3. Notice towards stakeholders and team

4. Correlation with all areas of risk (eg other projects / areas impacted)

5. Preparation and release / Go-Live

6. Acceptance signature

TECHNOLOGY

THE BPM SYSTEM ENSURES CONTINUOUS OPTIMIZATION

The last two stages of the BPM cycle (at the end of implementation) are already preparing the start of a

new loop:

Measurement & Monitoring

processes results

(optimized)

Identify problems /

optimization potential Refining / reoptimization

New Reports and

Dashboards Meniu

Suport furnizori

My dashboards

Management facturi

Suport online

Conditii Generale

Ultimele noutati

Oportunitati

Evolutia numarului de receptii cu probleme pe ultimele 12 luni

New optimization projects

KPI

Duration

Cost

Errors

As-Is Target

Value

gap

gap

gap

Gap analysis

TECHNOLOGY

BUSINESS PROCESS ANALYSIS - RESULTS

Process Diagrams

Existing and future IT

architecture & required

integrations


the process ("Ownership")

Current business rules


of the current level of

performance & process

metrics

User requirements and

functional specifications

(including reports)


model

Business case: estimating

benefits

V.1. Bugetpreliminar

TOP-DOWN

Bugetsubunitate

Bugetsubunitate

Bugetsubunitate

….PDOTPALTSRPASRPESFEZSPFPSALTLINVLREPLALT

V.2. Bugetcentralizat

BOTTOM-UP

Machete Planuri

Plan Investitii

Plan Achizitii

Plan Payroll

Plan Reparatii

Plan Formare

Plan Amortizare

Vizualizare plafoane aferente subunitatii / compartimentului

Completaremachete planuri*

Planificarebuget top-

down sialocare

plafoane

Centralizare automata a sumelor planificate la nivelulfiecarui plan si categorie de

cheltuiala din BVC

AC – Structuri centralizatoare

Subunitati / CompartimenteAC planificatoare

*Completarea

Planului de Payroll se va face de catreserviciul HR

Comparare/ Ajustare

BVC

AjustarePlanuri

1

2

3

4

5

6

vv

Web Server

(Apache Tomcat)

+

FTP Server

Suppliers DB Server

(Microsoft SQL Server)

Internal Firewall

External Firewall

DMZInternet

Stores, Buyers, Helpdesk

Accounting, Management

(Browser),

External Link

HTTPS

Internal Link

Internal

Network

JDBC

Send FTP files

Mega Image Servers

(Artemis, SAP)

Generate and Im

port

Linked Servers,

Generate and Im

port,

Web Services etc.

FTP

Server E-mail

Basic Security

Rules (TBD)

SMTP


pondere

in total 2011

pondere

in total 2012

pondere in

total ∆ 2011/2010 ∆ 2012/2011

clasa 1 4,532 0.2% 2,225 0.1% 563 0.0% -51% -75%

clasa 2 197,309 8.3% 188,042 9.7% 463,867 27.5% -5% 147%

clasa 3 -65,369 -2.7% 168,667 8.7% 207,073 12.3% -358% 23%

clasa 4 1,996,577 83.7% 1,445,608 74.8% 874,976 51.8% -28% -39%

clasa 5 169,555 7.1% 99,104 5.1% 109,396 6.5% -42% 10%

clasa 6 68,812 2.9% 19,113 1.0% 8,256 0.5% -72% -57%

clasa 7 12,866 0.5% 9,437 0.5% 24,287 1.4% -27% 157%

Total 2,384,282 100% 1,932,196 100% 1,688,418 100% -19% -13%

TECHNOLOGY

PROCESS ANALYSIS & REQUIREMENTS:

PROPOSED GENERAL MODEL

Draft a high-level model of the future process:

YesStop

Payment mngt

Invoice capture

Process StartCreate & Send

order

Placing & Receiving ordersCapturing Invoices

ComparisonInvoice Processing

Compensation Integration

Litigation Management

Litigation Management & Invoice clearing

Reception capture

TECHNOLOGY

PROCESS ANALYSIS & REQUIREMENTS:

PROCESS DIAGRAM

• Steps

• Roles

• Business rules

• IT systems involved

• Documents involved

• Materiality & Process Metrics

• Linked processes

TECHNOLOGY

DESIGN & MODELING BUSINESS PROCESSES - RESULTS

Charts future processes (optimized) and compared with the existing ones

New IT architecture


the process

Optimized business rules /

new


of the future performance &

process level metrics

Implementation Plan

Risk Management Plan

Change Management


model

Business Case updated:

estimating benefits


pondere

in total 2011

pondere

in total 2012

pondere in

total ∆ 2011/2010 ∆ 2012/2011

clasa 1 4,532 0.2% 2,225 0.1% 563 0.0% -51% -75%

clasa 2 197,309 8.3% 188,042 9.7% 463,867 27.5% -5% 147%

clasa 3 -65,369 -2.7% 168,667 8.7% 207,073 12.3% -358% 23%

clasa 4 1,996,577 83.7% 1,445,608 74.8% 874,976 51.8% -28% -39%

clasa 5 169,555 7.1% 99,104 5.1% 109,396 6.5% -42% 10%

clasa 6 68,812 2.9% 19,113 1.0% 8,256 0.5% -72% -57%

clasa 7 12,866 0.5% 9,437 0.5% 24,287 1.4% -27% 157%

Total 2,384,282 100% 1,932,196 100% 1,688,418 100% -19% -13%

Activitate

Activitate

Activitate

Activitate

Activitate

Regulă

Iniţializare

Rezultat

Resurse

Resurse

Resurse

ResurseResurse

output/input

input

Company website

BPM Engine

SecurityCommunication Engine & DMS

Service Oriented Architecture / ESB*

WEBPortal

Accounting CRM App1 App2

Legacy systems

SOME CASES A V A L U E C E N T E R E D A P P R O A C H

Business Process Management

SOME

CASES

BPM FOR RETAIL PROJECTS

Invoice litigations management

General expenses management

Logistic Litigations Management

Document Management

Management and Financial Reporting

BPM FOR BANKING PROJECTS

Data Warehouse, Management and Financial Reporting,

US GAAP and IFRS Reporting, Credit Risk Pillar Methodology

Credit & Collection Management BASEL II – Operational Pillar

Back Office Management, Loan Management, SOA based BPM

Cross Selling, Predictive Customer Interaction, Cash Management

BPM FOR PHARMA INDUSTRY

Order Management

Debt recovery Management

Invoice litigations management

Document Management

Distribution management

BPM FOR TELCO INDUSTRY

Product Lifecycle Management,

Social BPM for Cohesive Customer Experiences

Regulatory Compliance, Agile Order Cycle Processes

Best Practice Alignment

Cross Selling, Predictive Customer Interaction

SOME

CASES

1. Increase the costumer oriented approach

2. Optimise the process of credit granting

The Client: Universal Bank in Romania; a network of over 250 subsidiaries

In the course of rebranding and launching new products

CREDIT MANAGEMENT

CONTEXT

OBJECTIVES

1. The thorough analysis of the Mortgage Credit Analysis Process

2. Process standardization for every credit type

3. Modifying the sales performance indicators and capturing the seller’s

information

4. Designing the TO BE processes – flow, roles, business rules, functional

specifications

5. Implementing the BPM solution to manage the entire flow

1. Long term needed to process the credit applications

2. Quantification for the individual performance management system

3. Uneven client experience quality (from one subsidiary to another)

THE PROBLEM

OUR APPROACH

Reengineering the creditation process for mortgage credits

SOLUTION

1. Reduced the processing time by 40%

1. Reduced the process cost by 50%

1. Transparency and increased flow control

– all cases can be monitored

BENEFITS

“To-Be“ Process

(and activities)

Flow Modeling

Developing

Specifications and

interfaces for every

role

SOLUTION

The restructuring flow steps were integrated as

different interfaces within the application

Specific interfaces were developed for every

role in the flow, incorporating role-specific

demands.

The interfaces have fields that are completed

or populated form the bank’s database.

According to the user's options, the flow is

automatically guided towards the next logic

step.

The restructuring solutions are based on a

predefined decisional tree (by credit type)

TIME 40%

COST 50%

MONITORING 100%

VALUE

SOME

CASES

GARNISHMENT

MANAGEMENT

1. A management system objectified into a BPM Platform that orchestrates the

entire garnishment activity through:

2. A consistent interface including all the roles involved in the process –

integrated with the internal systems of the bank

3. Standardization and automation of the communication and interaction

between roles/departments, teams

4. Traceable accelerated execution through process automation and

optimization

5. Capturing the processed documents generated inside the process

6. Archiving the documents into a Document Management repository,

integrated with the BPM platform

1. High costs associated to non-productive activities

2. Lack of traceability within the entire workflow

3. High probability for error encounters (communication, human, procedural,

managing exceptions, etc)

4. Long execution time needed for the garnishment procedure – quantified in

penalties applied to the bank

5. The risks associated to sanctions being applied to the bank in situations

when cases were dealt with inappropriately

THE PROBLEM

THE SOLUTION

1. The Garnishment Management Process was automated by more than 70%

2. More than 50% decrease in cost associated with the implementation of a single

garnishment

3. More than 90% decrease in human error

4. More than 90% decrease in applied sanctions penalties

5. Real time reports and performance indicators

6. Flexibility in terms of legislation adaptability

BENEFITS

AUTOMATION 70%

COST CUTTING 50%

HUMAN ERROR DECREASE 90%

APPLIED SANCTIONS DECREASE 90%

REAL TIME KPI'S AND REPORTING 100%

FLEXIBILITY AND ADAPTABILITY 100%

SOME

CASES

Business process automation and integration with existing systems was the

main requirement for aligning the existing processes into a solution capable of

solving imperfect business operations. It made it possible to:

1. Automate the process of cash register report generation and data sync in

core systems;

2. Compare and interpret data regarding sales, declared, end of day for all

cash registers in all locations;

3. Identify, label and close gaps in extracted data from cash registers;

4. Management of all payment methods accepted by the retailer (cash, card,

coupons and others);

5. Product return management;

The solution is designed to extract, interpret and compare data and turn it into

information. It then transfers the information to key users, which only have to

validate what the system already interprets and recommends (based on

business rules). The system also communicates with users event-based. It

interprets data, creates events and requires the user to take action through

automatic custom messages.

Modular Web-based solution: automatic data extraction, data sync with core

systems (ERP), files generation, reports generation, communication module (in

platform and email), user tasks (validation, data entry, file generating)

CASH RECONCILIATION

THE SOLUTION

BUSINESS CONCEPT

1. Reduced the cash register closing time by 90%

1. Daily and monthly statistics

1. Data transparency regardless of location

BENEFITS

TECHNICAL

ARCHITECTURE Up to 70 % less time spent daily for cash

register information management and up to 80

% overall automation.

BEFORE

• 20 reports handled

by users for each

shop (daily)

• 50 – 60 user daily

user tasks (mainly

excel, phone,

email)

TIME 90%

REPORTING 100%

MONITORING 100%

VALUE PROPOSITION

Hardware and Software requirements:

1. BPM Platform;

2. DBMS Platform;

3. Web Interfaces, BPM layer,

interoperable system database, with

ERP databases;

4. Web Server: 8GB RAM, 1 Quad

Core3.

PHASES - APPROACH

Defining business concept and creating

the application involved the following

steps:

1. Analysis;

2. Implementing and systems’

integration;

3. User Acceptance Testing & Training;

4. Deploy & Go Live;

5. Maintenance & Support.

NUMBERS

AFTER

• 1250 excel reports

generated daily;

• 10 user tasks per

day;

• 478805 payment

method reports

integrated;

SOME

CASES

The implementation of the Enterprise Concept Expense

Management Solution was fast and efficient with the client

quickly realizing increased performance and cost savings.

The BPM modules automated the following processes:

Invoicing, Provision, Ticket Invoice, Provision Notification,

Payment Notification.

The General Expenses Solution streamlined the retailer’s

entire Accounts Payable process, helping the company

pay its suppliers faster and strengthening its relationships

with them. The client can now see which suppliers they’re

using for what more clearly, allowing them to be more

strategic in getting the most out of those suppliers, as

opposed to just looking at individual buys every time.

GENERAL EXPENSES

MANAGEMENT THE SOLUTION

BUSINESS CONCEPT 1. Close cooperation with subcontractors

2. Standardization of products and services

3. Deployment of logistic solutions

4. Continuous cost reduction and 100% compliance with established

processes

BENEFITS

TECHNICAL

ARCHITECTURE

BEFORE

COST of processing 1 order:

2,45 EUR

Clearing orders team: 40 people

TIME for processing an incorrect

order: 60 days

TIME for processing a correct

invoice: 6 days

VALUE PROPOSITION

RETURN ON INVESTMENT

4 months after GO LIVE

AFTER

COST of processing 1 order: 0,55

EUR

Clearing orders supervisors: 2

people


invoice: 7 days


invoice: 1.5 minutes

• Enhanced spend leverage and strategic sourcing saved 16 million EUR

in fiscal year 2010.

• Enabled the client to reduce its cost per order by 70%.

• Improved cycle and delivery time 5-7 days, and invoices that

traditionally took 30 days to pay are now paid in minutes.

• Improved user productivity and helped the retailer achieve its goal of

shifting purchasing’s focus toward value creation and away from day-to-

day tactical buying activities.

• 90% reduction in operating costs

PHASES - APPROACH

Defining business concept and creating the application

involved the following steps:

1. Business Analysis

2. Invoicing Module

3. Provision Module

4. Reports

5. UAT

6. Go LIVE

1. Centralization and automation of all data

related to subcontractors, suppliers,

invoices, accounting and provisioning

2. Automating the process of bills and

contracts comparison by providing

automated validation through the system

3. Integration with all existing information

systems

4. Enabling controls through a strong

approvals workflow

5. Pre-defining the expense types and set

limits compliant with the organizational

policy

NUMBERS

1. Resolved bill and contract comparison - Store: 8,007,000 EUR.

2. Cost Savings – Warehouse: 4,079,000 EUR

3. Sourcing Cost reduction: 3,521,000 EUR

SOME

CASES

The solution started with the understanding the entire

lifecycle of an invoice inside the company's financial

processes. The analysis highlighted the segments of the

existing process that needed to be revised and improved.

It aimed to achieve a high level of automation concerning

human based activities. The departments involved in the

processes were: Merchandising, Compensation

Department, Financial and the Stores.

The Enterprise Concept Invoice Management Solution

provided the client with a simplified and automated tool

for monitoring, managing, verifying and routing invoices

for payment or correction.

INVOICE MANAGEMENT

AND LITIGATION

THE SOLUTION

BUSINESS CONCEPT

1. Maximized early-payment discounts by accelerating the retailer’s supplier

invoice management

2. Carrefour now benefits from earlier and more accurate knowledge of

current invoices for each store

3. Minimized administrative tasks for field managers

BENEFITS

TECHNICAL

ARCHITECTURE

BEFORE

COST of processing 1 invoice:

2,35 EUR

Clearing orders team: 40 people


invoice: 40 days


invoice: 3 days

VALUE PROPOSITION

RETURN ON INVESTMENT

3 months after GO LIVE

AFTER

COST of processing 1

invoice:0,75 EUR


people


invoice: 3 days



5,000 invoices introduced in the system – daily.

800 suppliers receive daily e-mail reports on the status of payments

30% of suppliers NOW use the system to send electronic invoices

80% - the level of automation in the business process

1.5 minutes – average Invoice Processing time.

200 invoice-related tasks are handled daily to classify errors of price and

quality

4000 Order-Invoice cases are completed daily and integrated within the

company

30% - the level of improvement achieved during the year in cases of litigation.

PHASES - APPROACH

Defining business concept and creating the application

involved the following steps:


2. Analysis - Integration

3. Implementing

4. Integration

5. UAT & Training

6. Go LIVE

1. Proven reduction in billing processing time

by up to 90% in the first month after

implementation

2. Productivity increase of 35% in terms of

invoices processed

3. Time to register an invoice reduced by up to

40 days

4. Cost savings; Reduction of errors and

elimination of paper leads to lower operating

costs

5. Performance Monitoring and Management

6. KPI monitoring, effective workload balancing

7. Invoice lifecycle monitoring and

management

NUMBERS

1. Resolved litigations value - Store: 4,323,000 EUR.

2. FTE Reduction (Full Time Equivalent): 9500 FTE = 237.500 EUR.

(Avg. Salary = 500 EUR

SOME

CASES

1. Guides users towards a standard procedure, whilst

eliminating fraud.

2. Views and solves the logistic litigation tasks (along

with information about reception and related

products)

3. Generates responsibility among reception

supervisors, transporters, warehouse workers.

4. Keeps a history of the decisions

5. Generates reports and statistics

6. Views and modifies user information

7. Provides technical support for solving the problems

and tasks associated with each user.

The Enterprise Concept Logistics Management

Solution provided the retailer with a tool to improve

the relationship between stores and warehouses, thus

having a direct impact on the relationship with

customers and the company performance indicators.

LOGISTICS


FUNCTIONALITIES

1. Defined the accuracy of litigations from the first steps of the process

2. Created a database in which all information is stored.

3. Optimized and automated litigations communication methods (Excel

tables elimination, dozens of email addresses elimination, etc.)

4. Reduced the risk of failure in forwarding the e-mail to the intended

recipient

5. Automated invoices and stock corrections (changes pro-forma invoices,

stock regularization, etc.)

6. Resolved disputes through accountability operations, validation, etc.

7. Empowered staff (reporting, traceability)

8. Reduced manual work and integrates it into an efficient process based on

validations and decisions, at user level

BENEFITS

VALUE PROPOSITION RETURN ON INVESTMENT

3 months after GO LIVE • Value of resolved litigations / Markets: 2 781 232 EUR

• Value of resolved litigations / Warehouses: 465 290 EUR

• 8130 receptions manually checked;

• 975 cases including 1248 litigations were managed using Mail, SMS, XLS

files

• Corrective Actions:

• 783 command changes;

• 532 new invoices;

• 1990 stock regularization.

• 7882 Exported Invoices.

PHASES - APPROACH


2. Invoicing Module

3. Compensation Module

4. Reports

5. UAT

6. Go LIVE

The solution solved these types of litigations by:

1. Matching invoices with purchase orders or

with receptions.

2. Automating validations and internal

communication.

3. Using reporting tools and statistics for

process overview.

4. The solution aimed to optimize and

automate the logistics litigations process,

respectively to solve disparities between

warehouses delivery and stores reception.

5. There were several types of litigations in this

process:

• Qualitative

• Quantitative

• Expired items

• Anomalies

• Faulty reception

NUMBERS

1. 318,263 invoices and receptions

2. 31,793 litigations

3. 6,124 bills created

4. 9,490 command changes

5. 28,673 stock adjustments

6. 242,183 invoices exported BEFORE

• Duration –1 day at least

• Resources Involved – 3, 4

persons

AFTER

• Duration – 7 min

• Resources Involved – 0

persons

SOME

CASES

1. Attaining accurate and complete visibility of spend

across company

2. Leveraging scale across diverse divisions and

operating groups (purchasing power)

3. Segmenting spend and applying the appropriate

category management and sourcing strategy to

each category (Centralized, Central-Led,

Decentralized)

4. Outlining clear ownership, accountability and fiscal

responsibility around spend management

5. Driving efficiency and effectiveness of procure - to-

pay processes and clarity of roles and

responsibilities

6. Managing risks associated with poorly-written

contracts

7. Controlling spend and ensuring contract

compliance across the organization

Enterprise Concept’s Procurement Management

Solution for Retail enables full transparency in the

procurement - ordering – delivery- financial

transactions flow, thus enabling the client – the

biggest retailer on the EU market - to consolidate

purchasing and enforce the correct workflow and

logistical consolidation to optimize the cost and

quality for sourcing.

PROCUREMENT


BUSINESS CHALLENGES 1. Provided spend and supply information that enabled the supply base to

be rationalized from in excess of 5,000 suppliers to less than 100

2. Developed strategic business relationships and close contract

management of first-tier suppliers

3. Implemented an industry-standard consumables catalogue order

placement system that connected the client’s requisitions with suppliers

via the Internet;

4. Reduced inventory stock value level

BENEFITS

VALUE PROPOSITION RETURN ON INVESTMENT

3 months after GO LIVE 1. Contract compliance has improved more than 80% overall. Just as

importantly, the higher compliance rate has been sustained.

2. The system has also streamlined the client’s procurement process,

allowing the company to capture more detailed spend information,

enhancing spend analysis.

3. Manual purchase orders have been eliminated, allowing the retailer to

reduce headcount or reassign resources.

4. Operation expense was reduced from 0.95% of total spend in 2009 to

0.35% in fiscal year 2010.

1. The complete elimination of paperwork and

paperwork handling

2. Productivity increase of 80% in terms of

processing purchase orders and invoices

3. Time between need recognition and the

release and receipt of an order reduced by up

to 40 days

4. Cost savings; Reduction of errors and

elimination of paper leads to lower operating

costs

5. Performance Monitoring and Management

6. KPI monitoring, effective workload balancing

7. Improved communication both within the

company and with suppliers

BEFORE

COST of processing 1 invoice:

2,35 EUR

Clearing orders team: 40

people

TIME for processing an

incorrect invoice: 40 days


invoice: 3 days

AFTER

COST of processing 1

invoice:0,75 EUR


people

TIME for processing an

incorrect invoice: 3 days



IMPACT

Enterprise Concept worked with the retailer to

select, configure and implement BPM to optimize

their value chain, thus having a direct impact on:

1. Sourcing and Procurement Transformation

2. Spend Analysis and Opportunity Assessment

3. Strategic Sourcing

4. Procure to Pay Process Improvement

5. Contract Management and Compliance

6. Supplier Management and Partnering

Programs

7. Governance and Organization

8. Technology Enablement

Q&A Thank you!

SOCIAL MEDIA

CONTACT INFO

Tel: +0 371 464 524

Fax: +0 371 464 524

Email: [email protected]

Web: www.enterprise-concept.com

ENTERPRISE CONCEPT

Strada Aviator Traian Vasile nr 58,

Sector 1, Bucuresti

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