A leading North American food and beverage company with a household penetration of 98%
Consumer packaged goods
Improved customer experience, increased customer loyalty, and reduced costs
- Reimagined the end-to-end order to cash (O2C) process
- Leveraged Genpact’s proprietary Customer Experience, Sales Experience, Complexity, Risk (CSCR) framework to increase customer loyalty and operational productivit
- Enhanced standardization and simplification
- Enhanced customer experience
- Reduced cost and margin pressure
The client is one of North America’s largest consumer packaged food and beverages companies, with close to 130 brands and a household penetration of 98%. To grow within a highly competitive market, however, the company, needed to make its operations more efficient, and improve customer experience, loyalty, and revenue.
Genpact’s collaborative metric tool, Customer Experience, Sales Experience, Complexity and Risk (CSCR) framework, helped the client reimagine its order-management processes. The framework extracted customer-level insight about challenges and identified areas of improvement. It enabled Intelligent OperationsSM by applying process, technology, and analytics to convert Data-to-Insight and Insight-to-Action, which allows continuous learning and process improvement.
By using the CSCR framework, the client reduced order-processing costs by 33%, and improved revenues for one of its top retailers by 5% and for its key retailers by over 1% in one year.
The client, in part due to the competitiveness of its market positioning, had a large and complex customer base, multiple manual processes, and inadequate process documentation. Sub-optimal processes included the lack of end-to-end visibility in the O2C process, an unsustainable order entry process, and a high number of variations and exceptions—as a result, at least one-third of orders were not filled completely.
All of these gaps led to high order-processing costs, a problem aggravated by a weak governance structure and inadequate performance measurement parameters. Therefore, the most urgent need was to improve the client’s sales and customer experience via more on-time, in-full orders, while reducing per-transaction costs and mitigating the business risks from process complexity and the lack of governance structures.
Moreover, for a company aspiring to grow in a competitive market, transforming its (mostly manual) order management system was a key step toward plugging revenue leakage, reducing revenue dilution, and promoting growth.
Bearing the company’s overall revenue goals in mind, Genpact deployed its order management framework to create a holistic and significantly improved end-customer experience. Our framework helps design, transform, and run order management systems, and, by re-engineering the entire O2C process, enables enterprises to achieve on-time, in-full orders.
Genpact’s proprietary CSCR framework helps standardize, automate, simplify, measure, and elevate the customer and sales experience. Genpact also strengthened the client’s governance and controllership by reinstating policies and ensuring process adherence. This drove optimal process performance, simultaneously reducing the costs of operations and risk management.
The CSCR framework is powered by Genpact’s Data-to-Insight-to-Action process that creates an intelligent loop of continuous feedback for further improvement. The loop does not simply optimize parts of a process, but instead implements a powerful learning system that adapts and scales based on continuous analytical feedback—a better, more sustainable strategy. As a result, these intelligent operations can not only collect, and use, more meaningful data, but also extract actionable insights that lead to improved customer experience while reducing operational risks (see figure 1).
1. Provide visibility (Data-to-Insight)
In partnership with the client, Genpact identified cost reduction opportunities in three main areas—customer experience, order processing, and supply chain management—as target outcomes of the re-engineering project. Key indicators or metrics to measure these outcomes included:
- Perfect Order Index (POI)
- Timely and complete communication
- Master data accuracy
- Percentage of orders received electronically
- Service levels
- Number of days of supply
Data for these metrics was captured through greater collaboration, spanning transportation, order management, demand planning, and warehouse management, between the client’s sales and the supply chain teams. In addition, this cross-functional collaboration ensured critical visibility.
Score cards were used as an objective diagnostic tool for assessing existing customer satisfaction levels. The client assessed its top-20 customers using root-cause analysis to identify and plot interventions linked directly to improvements in customer satisfaction. This ensured that, for instance, a problem identified in one customer could easily be reviewed, and the correct intervention made, across all customer segments. Finally, after identifying areas of improvement, the score card process helped us draw up action plans.
2. Steer effectiveness and execute at scale (Insight-to-ActionSM)
Based on the increased process visibility, and joint meetings between sales, order management, and supply chain teams, Genpact developed a road map identifying areas of improvement, such as forecasting, communication, fulfillment, and delivery. This cross-functional engagement was a major transition from the earlier culture of working in silos. Additionally, the improvement process enabled customers to automate orders, track and trace orders, and view product specifications and pricing. This led to increased customer satisfaction. Finally, along with customer score cards, risk and complexity profiling helped the client understand and predict the ways that nuances in customer behaviors impacted the supply chain.
The cross-functional engagement and the deployment of target metrics provided one view of customer experience as well as a single view of the sales experience.
The critical part of Intelligent OperationsSM is that it unlocks capabilities for continuous learning. Tracking target metrics every month identified trends, while the continuous monitoring focused on areas that impact customer experience to ensure that processes were optimized.
Because the Data-to-Insight-to-Action loop created a holistic view of the O2C process, it enabled the client to take into account, and actively respond to, customer behaviors.
Genpact’s CSCR framework used the Data-to-Insight-to-Action process to extract intelligent customer insights for order-management processes, which helped the client build stronger relationships with top retailers. The framework improved days of supply, built predictability and reliability into the supply chain, and achieved a higher degree of connection with the end-customer (and, therefore, greater brand stickiness).
In twelve months, with the implementation of CSCR framework, the client improved revenue for one of its top retailers by 5% and for its key retailers by over 1%. Additionally, optimal process performance via enhanced governance and controllership reduced order-processing costs by 33%.
Order management automation
Genpact also deployed an order-management web portal, which automated order-entry processes on the export side of the client’s business. This portal includes user-friendly tools that can be accessed by mobile devices, resulting in a more positive customer experiences and decreased order-processing costs.