Case Study

How a cloud-based software solution (SaaS) reduced past due AR by 50% and cut reporting cycle time by 66% for a large automotive manufacturer

Client: Leading global automotive electronics supplier

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Business need addressed:

Improved AR and working capital through automated and optimized processes, better workflow and controls, and on-demand access to information across geographies

Genpact solution:

Deployed Genpact’s Systems of EngagementTM for order to cash (O2C), accounts receivable (AR) management suite, a one-stop, cloud-based Software as a Service (SaaS) solution for end-to-end O2C process and management reporting

Business impact:

  • Cash flow and liquidity
  • Standardization and simplification

A leading global supplier of automotive electronics greatly needed visibility into their AR portfolio. The company struggled with multiple and disparate ERP systems of record while managing more than 130 trial balances in 32 countries with retained and outsourced business operations. Deploying Genpact’s AR management suite globally provided the client with an end-to-end solution that leveraged all existing IT ERP investments and standardized global processes, resulting in a 50% drop in past due AR.

Business challenge

The company needed to optimize its AR and working capital, and wanted a solution that would provide process automation, higher productivity, transparency, strong exceptions management, and diverse reporting. The company struggled with:

  • Multiple versions and instances of SAP and QAD
  • No immediate visibility into the AR performance
  • Manual reporting with Excel used for reconciliation and consolidation
  • No standardized global processes for credit and collections
  • A difficult and complex change management structure
  • Two-week cycle for compiling management reporting from spreadsheets to ascertain dilution risk

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Genpact solution

Genpact provided an agile Systems of EngagementTM that enabled process standardization and automation, reduced past due AR by 50%, and cut reporting time by 66%

The company was interested in Genpact’s single-vendor solution, which combined better processes with a single technology platform that could be deployed across all regions and IT landscapes. The AR management suite provided:

  • Configurable credit, collections, dispute, and forecasting modules
  • A single platform supporting multiple currencies and over 50 languages
  • One-user interface integrating more than 130 trial balances across all ERP systems
  • Integrated D&B Credit Bureau information for better portfolio risk management
  • Consolidated global reporting capability with localized, country-specific functionality
  • On-demand analytics to monitor risk and process performance

Business impact

  • Currently generating $7 million P&L impact and $11 million cash flow annually
  • Delivered within 12 months:
    • Reduced past due AR by 50%
    • Best in class days sales outstanding (DSO) for North America region
    • 24% reduction in ageing buckets greater than 90 days
    • Decreased month-end report generation time by 66%
    • Reduced reserve expense of $6M in 2013
    • Enhanced visibility into collection efficiency
    • Rapid integration of new business acquisitions into AR management suite

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