Business Process Re-engineering – Designing Efficient Processes With Effective Controls
Background and challenge
A white-goods major player was acknowledging high business growth from market, however, constant breakdown in execution of activities resulted into negative growth in last few months. Management felt the need to assess exiting processes and control to support high paced growth with increased customer satisfaction. The management objective also included compliance with applicable laws and regulations and adherence of internal laid down procedures.
Xcelion Advisory was approached to assess the current processes, report on missing , inadequate and ineffective controls and suggest improvement in the processes.
Approach
We performed through walkthrough of the existing processes to identify process gaps and mapped existing controls. Further, we evaluated existing Controls for their effectiveness. Process Gaps and Control evaluation results were presented to management.
Thereafter, a comprehensive plan was suggested Xcelion Team to improve the processes by embedding effective controls, re-engineering inefficient processes and thereby defining Standard Operating Procedures for all major functions such as Plan to Inventory, Purchase to Pay, Order to Cash, After Sales Service, Record to Report and Hire to Retire.
Result
Adoption of controls with implementation of revised processes lead to significant improvement :
- Timely availability of planned Finished Goods there by increasing Sales by 20%
- Significant reduction in in-hand inventory by 80%
- Purchase cost decreased by 20%
- Overtime reduced by 10%
- Customer satisfaction score up by 2 points.