Leading food and beverage company cuts processing time by 50 percent

IBM Global Process Services streamlines finance and accounting processes to support growth

Published on 08-Feb-2013

"This could have been either a transaction processing contract or a platform for real process improvement. With IBM, it was the latter. Throughout the engagement, this group has been the catalyst for critical process changes and improvements." - Chief financial officer, leading food and beverage company

Customer:
Leading food and beverage company

Industry:
Consumer Products

Overview

A multinational food and beverage leader, this company produces an extensive portfolio of iconic brands loved by people throughout the world. Since launching its operations in India in 1989, it has become one of the country’s largest food and beverage businesses.

Business need:
To support business growth, this food and beverage company needed to standardize its disparate finance and accounting practices.

Solution:
IBM centralized the company’s finance and accounting processes and seamlessly transitioned accounting responsibilities to local IBM resources.

Benefits:
The organization reduced its invoice processing time by 50 percent and gained the capacity to accommodate seasonal volume spikes.

Case Study

A multinational food and beverage leader, this company produces an extensive portfolio of iconic brands loved by people throughout the world. Since launching its operations in India in 1989, it has become one of the country’s largest food and beverage businesses.

Challenge

To support its operations in India, this global food and beverage company maintained 16 manufacturing plants and 12 sales and corporate offices. Each location had its own finance and accounting practices, which made consolidated reporting arduous and time consuming. Plus, the lack of process controls resulted in claims processing and administration errors that frustrated the company’s employees and distributors. With plans for aggressive business growth in the works, the organization needed to unify and streamline its finance and administration activities.

Solution

IBM Global Process Services deployed a dedicated project team to centralize the company’s finance and accounting practices, standardize reporting, and automate its accounts receivable and claims management processes. The IBM team employed an expert desk to improve quality, performed interventions to simplify processes, and introduced standardization initiatives. Throughout the project, IBM worked closely with key stakeholders to keep the business informed and engaged in the process changes required.

As specified in the project contract, the Global Process Services team seamlessly transitioned accounting responsibilities to the local IBM services center, rebadging former company employees to ensure zero job loss. These employees provided critical knowledge about the company’s financial operations to help ease the transition and move the solution into production in accordance with project timelines.

Pleased with the transformation of the company’s finance and administration practices, the organization’s chief financial officer noted: “This could have been either a transaction processing contract or a platform for real process improvement. With IBM, it was the latter. Throughout the engagement, this group has been the catalyst for critical process changes and improvements.”

The great success of the solution in India prompted the business to extend its arrangement with IBM further. “We had fabulous success in this relationship,” said a Global Process Services team member. “Based on the performance of the IBM solution in the domestic market over the last three years, we earned our client’s confidence that we could take this partnership to additional geographies.”

In addition to providing finance and accounting services for the company’s India and Dubai headquarters, IBM will extend its capabilities to the organization’s operations in Australia, New Zealand, the Middle East and Africa. “We have performed benchmarking and assessments on our processes in India,” said the IBM resource. “This creates a gold-standard roadmap to apply across all other geographies.”

Benefits
● Introduced invoice scanning and document digitization to accelerate processing time by 50 percent and reduce error
● Allowed the client to accommodate seasonal volume spikes and maintain its processing speed, avoiding backlog
● Delivered process improvements that improved productivity by approximately 40 percent and resulted in annual discounts

For more information
To learn more about IBM Global Process Services, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/services/bpo

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Global Process Services Route 100 Somers, NY 10589 Produced in the United States of America January 2013 IBM, the IBM logo, and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.