Case Study

MGM Resorts reduced collections cycle by 32% with Genpact Systems of EngagementTM for accounts receivable

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Client:
MGM Resorts International is a leading gaming, hospitality, and entertainment company.

Industry:
Hospitality

Business need addressed:
Increase working capital and productivity by improving MGM's decentralized, complex accounts receivable (AR) process

Genpact solution: Implemented an Electronic Invoice Presentment and Payment (EIPP) solution that automated and consolidated MGM's billing and dispute processes and standardized business processes across all of the client's properties

Business impact:

  • Simplification and standardization
  • Cash flow and liquidity
  • Access to technology

MGM Resorts International operates a portfolio of destination resort brands. The business used a decentralized, paper-intensive, manual AR process that delayed billing and impacted cash flow. Genpact was already working with the company to improve various aspects of its finance and procurement functions; MGM expanded the scope of that successful relationship to implement Genpact Systems of EngagementTM for order to cash, AR management suite, which included EIPP, to streamline its workflow and drive electronic invoicing. By moving the entire AR function toward simpler, more standardized processes, the solution increased productivity by 60% and significantly improved working capital.


Business challenge

The company's paper-intensive, complex, manual AR process was decentralized and nonstandardized across properties, and resulted in:

  • Inaccurate invoices
  • Delays in billing clients, with subsequent delays in payment
  • A high rate (85%) of disputes, which trapped millions of dollars of cash in the AR process
  • Excess FTEs involved in AR processing and upstream functions

The company's process also lacked metrics that would help drive improvements.

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Genpact Solution

To provide practical and effective solutions, Genpact follows a Lean DigitalSM approach that combines human-centered design thinking, and Lean principles, with digital technologies underpinned by deep domain expertise.

Our AR management suite included:

  • EIPP: Invoice presentment, release, delivery, and payment to the client's end users for both wholesale and convention business lines was implemented over one year, with further online payment functionality being deployed
  • Consolidation and standardization of billing and setup of consolidated bill-pay capability: the EIPP solution was hosted by Genpact for use by MGM's AR team
  • Centralization and standardization of dispute capture and resolution processes using improved workflow to create, authorize, and approve or reject disputes
  • Standardization of business processes across properties

Business impact

  • 60% increase in productivity
  • 32% reduction in collection cycle time
  • 75% reduction in invoice creation cycle time
  • Significant improvement in working capital
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