po penetration process - f&a

The Client

The client is a global business conglomerate having a presence in several

countries worldwide. With diversified business interests in manufacturing,

services and retail, it has grown significantly through strategic global

acquisitions and partnerships, development projects, capturing new

markets and discovering new raw material sources.

Managing Experience

Risk Mitigation and Increased Productivity for a Global Business Conglomerate

OVERVIEW

Industry: Manufacturing, Services & Retail

Geographies: Global

Solutions:

- Reduced manual effort

- Lesser processing time

- Transaction incident monitoring

Results:

- Increased productivity by 15%

- Reduction in maverick spend

- Increased PO penetration

Case Study | Outsourcing | Manufacturing, Services & Retail Industry

Managing Experience

2

Business ChallengeOur client faced a challenge of controlling the non purchase order based

purchases. As a result of a large percentage of non PO based purchases,

our client faced issues like duplicate payments, controllership issues

related to the need for a non PO purchase and opportunities of getting

better rates through a PO process.

Solutions Delivered by AegisOur team of process experts collected all relevant transaction information

and analyzed the non purchase order spend. The data was analyzed and

the workshop was conducted with the relevant stakeholders like

procurement team, the department heads, in whose departments spend

percentage was high and the purchase head. During this workout the

reason of the non PO spend was discussed and possible options to

convert it to a PO spend was discussed in light of cost benefit situation

in relation to various categories of non PO spend categories.

Based on the agreements reached during the workout sessions, the

policy was framed and provided to all the business houses to mandate

the same across departments. Any exception to the policy where non

PO based expenses were incurred were to be pre approved by

authorized senior management.

Transaction incident monitoring solution was introduced as a rigor for

fortnightly tracking the purchase order penetration to cover all the

exceptions. The key feature of the monitoring solution was to detect all

non purchase order invoices raised and conversion designed to

circumvent the standard policies framed for purchase orders.


Managing Experience

3

Key Results and Benefits- Controls: Risk mitigation due to system driven controls for processing

payment, adhering to the corporate policies by way of all the requisite

pre approvals in place of the senior management.

- Improvement in productivity: Reduced manual effort and aided in

lesser processing time resulting in 100% accuracy.

- Drove visibility and enabled dashboard reporting by nature of expenses

leading to overall controls on spend.

- Enhanced vendor satisfaction due to accurate receipt of payments on

due date.

- Thorough vendor selection process led to competitive biddings.

- PO penetration improved from 60% to 95%

- Enhanced controls – movement from manual controls to system

controls

- Increased productivity by 15% – PO invoice processing

- Cost control – Reduction in maverick spend

- Positive P&L impact through better negotiation


Before

After

0%10%20%

30%40%50%60%70%80%90%

100%

Client PO Penetration Productivity

Managing Experience

4

About AegisAegis is a global outsourcing and technology company committed to

impacting clients’ business outcomes by focusing on enhancing customer

experience across all touch points and channels. Aegis was founded 30

years ago in the US and now has operations in 56 locations across 13

countries with more than 55,000 employees. Aegis services over 300

clients from verticals such as Banking and Financial Services, Insurance,

Technology, Telecom,Healthcare,Travel & Hospitality, Consumer Goods,

Retail, and Energy & Utilities. The company is wholly owned by the Essar,

a USD 27 billion conglomerate.

For more information write to us at [email protected] or visit

www.aegisglobal.com
