M a n u fa c t u r i n g
54% improvement in price update cycle time by
simplifying contract administration processes for a major
automotive parts manufacturer
This leading manufacturer of navigation, communications, and consumer accessories for the automotive industry experienced delays in
price updates for self-billing clients, leading to incorrectly issued invoices and overstatement of accounts receivable (AR) by US$1.9 million.
Genpact improved the price update process and instituted tighter controls to reduce the cycle time from 3.26 days to 1.76 days.
Business challenge
Client
• Case indexing and contract review were performed manually
Major automotive parts manufacturer
• Inefficient prioritization process for price change requests and verification of
purchase orders against quoted prices
Industry
Manufacturing
• Manual and time-consuming processes for price updates and quality checks in the
client ERP system
Business need addressed
• Cycle time for updating prices was 3.26 days
• AR was overstated by $1.9 million due to self-billing discrepancies
To improve inefficient manual processes
that were contributing to long cycle times
for price updates and overstated accounts
receivable
Genpact took an end-to-end approach to creating
smarter price update processes
Genpact solution
Process
Genpact enhanced contract
administration process efficiency by
automating data processing and reducing
the sources of process variation
Business impact
• Standardization and simplification
• Risk and compliance
• Asset optimization
• Developed macros for contract reviews, quality checks, and price update
procedures to speed cycle time and ensure required data was captured
• Reviewed output elements and identified additional details that would facilitate the
contract review process
• Changed the prioritization criteria for price change requests
• Enforced new procedures regarding macro use for all customers in scope
Controls
• Instituted controls over the list of cases that required prioritization at quarter-end
• Implemented consistent tracking of cases until case closure
• Reviewed the performance of macros on a monthly basis
• Engaged the Genpact support team to enhance and align the macros’ data capture with customers’ purchase order templates
Business impact
Tighter controls and “smarter” processes resulted in more accurate invoices, reduced the cycle time for updating prices by 54% (from 3.26
days to 1.76 days), and improved resources utilization.
About Genpact
For more information, contact:
Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and operations.
Genpact generates impact for 700+ clients including over 100 of the Fortune Global 500. We offer an
unbiased combination of smarter processes, analytics and technology through our 60,000+ employees in 24
countries, with key management based in New York City.
[email protected]
For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook and LinkedIn.
© 2013 Copyright Genpact. All Rights Reserved.