Client: Global consumer packaged goods company
Industry: Consumer packaged goods
Business need addressed: One of the world’s best-selling snack brands needed help consolidating its regional finance and accounting (F&A) operations from regional shared services across the US, Europe and Asia Pacific into a single global hub to drive savings
Genpact solution: Designed the finance target operating model to set up and operationalize a global center in the Philippines, which moved into a hybrid service delivery model with 1,200 FTEs. Embedded continuous improvement at the center’s core
Business impact: Realized 21% increase in productivity during the first year of operations (against a projected year-one increase of 15%) to put the transformation plan on track to reach its 40% productivity target
Following a series of mergers and acquisitions, this $35 billion consumer packaged goods (CPG) company had a number of legacy regional shared-service F&A operations that functioned as silos and lacked standard processes.
From a logistical perspective, the task of migrating and merging regional workflows and 300 full-time positions to a global hub in the Philippines was formidable. Based on its success, the company aimed to move to a service-provider relationship.
Genpact worked with the organization to develop a customized roadmap for the solution design and migration methodology. The aim was to gradually consolidate key F&A functions in a single shared service, and create a template for future consolidation.
To build and operationalize the center, Genpact established the entity in a building where it already ran operations for a number of global clients, which enabled an even closer partnership. Genpact’s knowledge of the local market and talent pools also helped it to quickly recruit the people it needed to run the center.
Using its global operating presence, deep F&A domain expertise, and large ecosystem, Genpact helped the CPG firm go from almost zero presence in the Philippines to a fully functional global hub with 300 FTEs after two years. The organization 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 firmly on target to meet a four-year productivity improvement goal of 40%. To achieve this, Genpact is leveraging its Lean DigitalSM approach, which combines digital technologies with design thinking, and Lean methodologies, to introduce Systems of EngagementTM and analytics that will further impact productivity.