Building a Defendable Global Business Services Strategy
ScottMadden was engaged to define an enterprise-wide business services strategy to simplify and standardize operations across business units and regions.
At a Glance
Identified Savings
Identified approximately $24 million in sustainable annual run-rate savings through enterprise standardization and stronger indirect procurement controls
Granular Business Case
Built a granular, bottom-up business case linking savings directly to specific work activities, creating a more defensible path from recommendation to value
Actionable Strategy
Translated a complex global operating environment into an actionable business services strategy across more than 300 locations
Challenge
A global packaging manufacturer with more than 300 locations sought to reduce costs and complexity and improve performance across source-to-pay (S2P) and lead-to-cash (L2C) processes, following years of acquisition-led growth that left operations and decision-making highly decentralized. ScottMadden was engaged to define an enterprise-wide business services strategy to simplify and standardize operations across business units and regions. This effort was complicated by prior unsuccessful transformation attempts, limited alignment beyond the CFO organization, and the need to secure buy-in from decentralized business unit leadership.
Process
- Assessed global S2P and L2C processes, roles, and delivery models across business units
- Analyzed work activity and cost data to quantify variation and prioritize standardization opportunities
- Developed future state operating model recommendations to simplify and standardize processes, improve transparency and service, and reduce waste across S2P and L2C
- Built a data-driven business case, linking recommendations to quantified savings at the activity level
- Developed a three-year road map to sequence governance, process improvements, organizational changes, and technology enablement
Result
- Identified approximately $24 million in sustainable annual run-rate savings by year five through enterprise standardization of indirect procurement processes and elimination of maverick spend
- Projected approximately $12 million in cumulative net savings by year three driven by near-term quick wins and efficiency gains in indirect procurement, customer/supplier enablement, and finance operations
- Established an indirect procurement COE to centralize oversight across North America, enable early execution of priority savings initiatives, and embed sustainable cost discipline across business units
Related Insights
GBS Order-to-Cash and System Strategy for Packaging Company
Case Study
Learn how ScottMadden helped a global package delivery company bring its accounts receivable department into alignment to support enterprise goals.
Finance GBS APAC Hub Design for a Medical Supply Company
Case Study
Read how ScottMadden helped a rapidly growing client bring their new, global locations into alignment with the business and provide finance services at scale.
Strategic GBS Stand-up for a Global Healthcare Spin-off
Case Study
ScottMadden supported a newly-formed spin-off from a global healthcare organization to stand up a global business services organization, and maximize value capture while supporting its worldwide operations.
Let’s Work Together
We don’t solve problems with canned methodologies; we help you solve the right problem in the right way. Our experience ensures that the solution works for you.