Finance and Accounting
Effective accounts payable (AP) processes that optimize working capital, sustain cash savings initiatives, and enable long-term supplier relationship management can help organizations maximize profits and thrive in rapidly changing economies.
Genpact AP solutions and services combine process rigor with leading-edge technology, analytics, and transformation solutions to drive higher impact by enabling a more effective AP function. Genpact AP outsourcing services encompass end-to-end AP processes, including:
- Document management
- Invoice processing
- Approval and resolution management
- Help desk
- Month-end and internal/external reporting
Our accounts payable solutions make the end-to-end process more efficient and effective. They draw on Genpact’s Lean DigitalSM methodology that harnesses design-thinking methods, Lean principles, digital technologies and analytics, and deep domain expertise.
Our Digital Smart Enterprise Processes (SEPSM) framework tightly aligns key activities to business outcomes to help reimagine accounts payable.
Coupled with Systems of EngagementTM, Data-to-Action AnalyticsSM, and proven industry best practices, our approach provides measurable and significant impact, including greater accuracy, tighter compliance, faster cycle times, and lower processing costs.
Genpact’s solutions deliver:
- Consolidation and standardization across geographies that boost efficiency and reduce costs by 5% to 10%
- Invoice automation to streamline data capture and processing, increase productivity by up to 50%, and improve payment on time
- Greater control to minimize and eliminate risks and revenue leakage
- Invoice discount capture through efficient processes that reduce cycle time and realize savings
- Working capital optimization to improve an organization's ability to pay on time, and enable better price negotiation and cash flow
Our global coverage and deep practice capabilities include:
- Serving more than 1200 clients from 24 delivery centers across 75 countries
- Global coverage supporting 25 languages
- More than 80 million invoices processed annually, worth US$250 billion
- Almost 20 years' experience in accounts payable outsourcing
- Support for more than 25 ERP platforms (Oracle, SAP, JDE, etc.)
- Full-service business process optimization capabilities
Our approach to AP outsourcing and finance transformation delivers measurable results across industries.
EBIT improvement for a media company
A leading media company instituted an early-payment discount program for vendors, but due to process failures and the late submission of invoices, the company was losing 94% of available discounts. This affected income and weakened the company's negotiating position with vendors.
Genpact analyzed the client's data collection processes and changed the invoice processing methods to produce an 11% improvement in discount capture, with a commensurate, material P&L impact.
Process efficiencies raise payment on time (PoT) from 70% to 94%
For a major pharmaceutical company, unrealistic payment terms, process deficiencies, and compliance issues were generating high vendor dissatisfaction and a negative impact on cash flow and working capital.
Genpact synchronized payment terms with contract terms, collaborated with vendors to implement more realistic timelines, reengineered the invoicing process, and instituted tighter approval controls and reporting. This raised PoT to 94%, reduced invoices on hold by 60% and cut approval times by five days.
$59 million in cost savings through cost-effective, technology-driven accounts payable
A major global consumer packaged goods firm wanted reduced costs, standardized practices, and working capital opportunities from its inefficient accounts payable process. The company suffered from a high number of invoice exceptions, low payment-on-time and discount-capture rates, and high invoice-processing costs.
Genpact deployed a technology-driven approach based on flexible invoice processing and analysis, payment-terms optimization, and a new program for repeat, low-value purchases, generating $59 million in savings.