Case Study

Consolidating F&A for a consumer goods firm

Icing on the cake? A 21% productivity gain first year out

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Who we worked with

A global consumer packaged goods company.

What the company needed

To drive savings by consolidating its regional finance and accounting (F&A) operations from shared services across the U.S., Europe, and Asia Pacific into a single global hub.

How we helped

Genpact used design thinking and Lean methods with digital technologies and analytics to design the finance target operating model, and set up a global center in the Philippines.

What the company got

The efficient new hub helped the firm realize a 21% productivity increase during the first year of operations (against a projected year one increase of 15%). This put transformation on track to reach its 40% productivity target over four years.

Following a series of mergers and acquisitions, this $35 billion consumer packaged goods company had a number of legacy regional F&A shared service centers that functioned as silos and lacked standard processes.

Challenge

Manage a major migration

Creating a global center for F&A—one embedded with continuous improvement at its core—called for a newly designed finance target operating model. The plan was to move to a hybrid service delivery model with 1,200 full-time-equivalent (FTE) workers. The task of migrating and merging regional workflows— and 300 FTEs—to the global hub in the Philippines appeared formidable.

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Solution

A close partnership and deep pool of talent

Together with the firm, we developed a roadmap for the solution design and approach to migration. The goal: to gradually consolidate key F&A functions in a single shared service, and create a template for future consolidation.

For an even closer partnership, we established the center in a building where we already ran operations for several global clients. Our knowledge of the local market and access to talent helped us quickly recruit the people needed to run the center. We applied Lean DigitalSM throughout our work, which brings together design thinking skills, Lean methods, digital technologies and analytics, and extensive industry knowledge, to rethink processes and deliver outcomes that matter.

Impact

A new hub on target to bring 40% productivity improvement Using our global operating presence, deep F&A expertise,and large ecosystem, we helped the CPG firm go from having almost zero presence in the Philippines to a fully-functional global hub with 300 FTEs in two years. The company then moved to a service provider relationship with 1,200 FTEs to deliver record to report and enterprise performance management globally.

Looking ahead, the 21% gain in productivity enjoyed during the hub's first 12 months of operations has put it solidly on target to meet a four-year productivity improvement goal of 40%.

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