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 accounts payable 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 accounts payable outsourcing services encompass end-to-end AP processes:
- Document management
- Invoice processing
- Approval and resolution management
- Help desk
- Month-end and internal/external reporting
The benefits we deliver include:
- Consolidation and standardization
- Invoice automation
- Greater control
- Invoice discount capture
- Working capital optimization
Genpact designs, transforms, and runs intelligent business operations that support finance transformation. Our AP solutions and services make the end-to-end accounts payable process more efficient and effective. Our Smart Enterprise Processes (SEPSM) framework evaluates clients' performance against best-in-class functions and links key metrics to business outcomes, for a more targeted intervention and tighter alignment with business objectives. Coupled with our proprietary Systems of EngagementTMtools, Data-to-ActionSM analytics, and proven industry best practices, our approach provides a measurable and significant impact, including greater accuracy, tighter compliance, faster cycle times, and lower processing costs.
Our 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:
- More than 100 clients
- Global coverage supporting 15 languages
- More than 45 million invoices processed annually, worth US$250 billion
- More than 16 years' experience in accounts payable outsourcing
- Support for all ERP platforms (Oracle, SAP, JDE, etc.)
- Full-service business process optimization capabilities
Genpact's SEPSM framework 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.
45% reduction in F&A costs through transactional finance transformation
To achieve best-in-class performance in transactional F&A for a global pharmaceutical firm, Genpact applied its SEP framework and operational knowledge to design the finance future state. It executed more than 45 projects across six processes globally and delivered services for more than 40 countries from nine delivery centers.
As a result, the client reduced its F&A costs by 45% and delivered $71 million of business impact in the first 18 months.