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Accenture - Consilium Case Study Kaushik Basu Concelium XIMB - KolaveriBros - Final
Accenture - Consilium Case Study Kaushik Basu Concelium XIMB - KolaveriBros - Final
Ashwin B
Increase
Profitabilit
y
Increase
Cash
Flows
Decrease DPO
CSFs
Root Causes:
1.Lack of Centralization
2.Lack of Standardization
3.Process Complexity
4.Lack of Controls
5.Lack of Training, documentation and Knowledge
management
6.Lack of Incentives (Poor alignment of Performance
Objectives)
7.Lack of interoperability
8.Lack of Automation
9.Lack of Collaboration
10.Lack of Planning Software
1. Standardization, Centralization
and Simplification of the PTP
processes
2. Designing interfaces and
optimizing EDI and e-catalogs
to ensure communication
through the system
3. Automating manual processes
to reduce errors
4. Leveraging MRP Planning
Features
5. Conducting Training for the
operators
6. Ensuring adequate
documentation about the
processes and policies
7. Making documentation and
Purchasing Organization
(Field Service Level)
Order<=Threshold Value
Process
People
Process
People
Process
Content Standards
Standardize the Product and Service attributes master
data, preferably based on universal guidelines like the
UNSPSC(United Nations Standard Products and
ServicesCode)
Standardize supplier catalogs to agree with the above
Define EDI schema for seamless integration
Take up change management initiatives to get buy in on
use of P Cards from the field services and vendors
Take up change management
initiatives with suppliers for
consistent use of EDI and E
Catalogs
Take up change management initiatives to get
buy in from field services and other employees
on the automation and standardization of
interfaces
People
Transaction standards
Define secure
channels and protocols
for communication via
EDI and E-portal
including encryption
and transaction
protocol
Supplier Development may be
necessary
Fixing accountability
and reducing human
errors and delay
Process
People
Process
Training MRP
controllers on
configuring MRP
parameters
Monthly
exception
reports for
demand supply
mismatch to
monitor
efficiency of
MRP process
People
Audit data
capture on such
modifications
for monthly
review
Training MRP
controllers on
the use of
various
reports
Monitoring at
aggregate and
granular level for
measuring efficiency
and initiating changes
as required
Tailor made
Matching to
Individual Field
Service
Requirement
Process
2 Way Match
Technology
People
Process
2 Way Match
Technology
People
2 Way Match
Reduction in Default
in Payments, Increase
in FI invoice
processing rate
Monitoring age of
invoices through
dashboards to avoid
default
More accurate
matching of Goods
to Invoices through
aging and matching
dashbards
Knowledge Management
Knowledge Management
Easy resolution of on
job technical and
process related issues
Controls
Standardization
Clearly lay down policies for country specific procurement processes. Define metrics to measure
compliance to policies. Align compliance with performance appraisals
Centralization
Tolerance Groups to disallow purchase above a threshold value at the field service level
Monitoring through audit report the amount of decentralized purchases, purchases without POs
and aligning these metrics to performance appraisals
Efficiency
Monitoring the aging of invoices assigned to a MRP controller through reports and aligning the
metrics to performance appraisal
Monitoring the mismatch between goods receipt and invoice receipt dates through reports and
reviewing them in monthly status meetings
Enforce PTP workflows through logical access controls and tolerance groups, monitor aging of
tasks through audit reports and enforce the performance of tasks in such cases through redressing
mechanisms. Align such metrics to performance appraisal
Monitor the use of FI workflow in the fields. Give incentives based on % utilization. If 100% of FI
invoices had been processed through the workflow system, 100% utilization is achieved.
Follow a top down approach to refer to PTP metrics during monthly status calls with field services
to encourage their usage
Accuracy
Monitoring the performance of purchase officers based on incremental orders above MRP planned
limits and consumption of such materials, manual modifications of MRP parameters, etc through
audit reports and aligning that to performance reviews
Monitor % mismatch in invoice values and goods delivered through audit reports, automatic
reconciliation accounts and internal dashboards
Change Management
Steering Committee
Early Wins
Steering Committee
Meeting
Organization Wide
Deployment
Week
Contract Signing
Further As Is Study
Steering Committee
Meeting
Development
Testing
UAT
Steering Committee
Meeting
Pilot Project
Steering Committee
Meeting
Go Live
System Development
Project Charter
1 1 1 1 1 1 1
1
2
1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 18 9 20 1
KPIs
Impact
Reason
5%
10%
5%
Supplier Performance
5%
5%
Automation is the key driver behind the cost cutting and hence
the check runs and manual payments are completely
eliminated
10%
10%
KPIs
Impa
ct
Reasons
10%
5%
5%
5%
5%
5%
2%
2%
% of orders via PO
10%
Process
Related KPIs
PO
Process
PTP Cycle
Cost
Saving
s
Dead
weig
ht
Cost
Savin
gs
2%
2%
2%
Focus Areas
pertaining to the
process
Standardization
Leveraging MRP
2%
1%
3%
2%
3%
8%
0%
3%
2%
1%
Centralization
Leveraging MRP
Optimizing EDI and
E-catalogue
Goal Alignment
Leveraging MRP
Standardization
and centralization
Process
Related KPIs
Cost
Savings
(KPI) after
change
mgmt
Dead
weig
ht
Cost
Savings
after
change
mgmt
Focus Areas
pertaining to
the process
Processing
AP
FI Invoices Processed
% of BSC Payments Automated Clearing House
(ACH) / Electronic Funds Transfer (EFT)
% of Payments that are Checks at Transaction
Centres
2%
1%
2%
3%
Automation
Documentati
on about
process and
policies
Dashboards
and workflows
2%
2%
Goal
alignment
Conducting
training for
the operators
Staff Training
Number
of
procurement
FTEs as a percentage of
Manageme
the
nt Issues
total number of company employees
Total Spend Under Management
2%
1%
1%
2%
Sales/year (Mn $)
8000
Standardization
Designing Interfaces EDI
Automation
Leveraging MRP (SAP BW
Reports)
Training
Adequate documentation
Goal Alignment
Investment
NO of POS /yr
Avg value of PO
Total PO
85000
.022
0
0.20
0.20
0.15
1.00
0.10
0
-1.65
1700