Case Study

A global food and beverage powerhouse creates a global digital workforce

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Who we worked with

The client is the third-largest company in North America and fifth largest in the world.

What the company needed

Our client was looking to transform their manual business processes, which were prone to error. They knew their processes were high-volume and labor-intensive, resulting in low first pass yield, hefty backlogs, and unhappy customers. They wanted to create a digital global business services (GBS) of the future and needed a partner with the right domain and technology skills to help them transform.

How we helped

They selected Genpact as they embarked on their transformation journey in 2015. Bringing our deep understanding of processes coupled with our robotic process automation (RPA) experience, Genpact was chosen to deliver multiyear benefits.

The journey started with RPA in one process and one country and over the years it has scaled up to approximately 70 robots across 10 countries in 13 processes and going on to 120 robots by the end of 2018, across finance and accounting, order management, cash apps, collections, and trade payment processes. Genpact has also coupled RPA with artificial intelligence (AI) in specific use cases to deliver exceptional results.

What the company got

RPA has delivered 25%–40% reduction in cost per transaction with exception cases being reduced by approximately 35%. Cycle time response time has also improved by around 60% for help desk tickets. In collections and cash application, 50% of transactions are processed by bots with 98% accuracy. AI has been coupled with RPA for trade pay where AI does a three-way match and provides inputs to RPA bots for downstream processing.

Our client is now rapidly scaling up RPA across multiple processes in 12 countries with a digital workforce of around 120 bots.

Challenge

Prior to implementing RPA, our client's GBS group was processing 50,000 invoices per month with 40 full-time employees and 12 employees responding to queries through their vendor help desk. Our client recognized that their high-volume, labor-intensive global accounts payable and trade payment management processes were resulting in:

  • Vendor dissatisfaction due to slow help desk response times
  • Invoice processing rework and significant backlogs
  • Controllership issues and risk due to low compliance ratings

The firm turned to Genpact to transform their procure to pay (P2P) operations by first optimizing their processes through business process reengineering. Genpact found that our client's rules-based, repetitive work with high volumes were perfect candidates for using RPA.

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Solution

As part of our client's RPA Journey, Genpact assessed 344 business processes over a four-month period and created an intelligent automation roadmap through 2020.

Our client has chosen a “think big – start small – scale rapidly" approach to their digital journey. They decided to initially automate key accounts payable, trade payment, reporting, and order management processes with monthly targets to test how the automation worked in their environment.

Over the last few years, Genpact has scaled the project team to automate P2P processes, deploy touchless sales administration, touchless order entry, order management virtual assist, and implement governance controls using Genpact's Cora Command for real-time notifications. Today, Genpact has automated GBS processes in North America, Europe, and APAC, covering multiple languages.

Our client is now moving into their next phase of automation by expanding RPA across more processes and including AI technologies. With 70 robots now live, client plans to go live with 60 more robots by December 2018 across order to cash, accounts payable, and data management operations. They are using the Genpact Intelligent Automation Index model to funnel automation ideas and prioritize those with the highest expected returns.

Genpact was also selected to set up a proof of concept (PoC) for two retailers using artificial intelligence to automate their contract creation and trade promotions processes. This highly manual process was completely automated using natural language processing (NLU). Proven successful, this disruptive automation is being rolled out to all of our client's retail customers with integrations built into their retail portals.

Impact

With the first 15 “digital workers" (or software robots), our client saw lower operational costs and higher vendor satisfaction and compliance levels. The processing cost per invoice has also gone down by approximately 60%. Our client's initial digital transformation journey has greatly improved turnaround times, efficiency, and accuracy.

As of the end of 2017, 80% of invoices and 65% of help desk queries volume are processed by digital workers. The help desk queries (largely invoice status and vendor statement requests) are responded to by software robots. In collections and cash application, 90% of transactions are processed with 99% accuracy.

The impressive results have spurred our client to move into the next phase of their GBS digital transformation. As part of their vision for a future-ready GBS, our client has set a new goal of onboarding over 60 new digital workers – bringing their total to more than 120 bots – in order to automate a total of 15 processes across 20 countries by the end of 2018.

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