Process development project within an international logistics group

 

The project that PS Provider carried out within an international logistics group meant the mapping, documentation and implementation of process improvements in central and local administrative support functions (> 50 units) in Sweden and internationally. In Sweden, the client had a finance function with a staff unit which, among other things included accounting, AR, AP, and client / credit unit. The central finance function employed a total of about 65 people. Besides this, there were about 100 employees across the various districts working full time in finance-related tasks.


The project had a number of goals and objectives. One objective of the process mapping was that it could be used as documentation in the internal quality assurance system and as a basis for internal audit. In order for better and increased use of the process mapping the survey was completed with additional information such as resource consumption, times and volume data. Another analysis was to identify problems, improvement opportunities and fluctuations in the finance workload over time. The project delivered following things:

 

  • Well-defined processes and services as well as performance measures that made it possible to carry out benchmarking with other organizations
  • Unit prices for the services that the function perform, initially for internal measurements and in the long term possibly also as a basis for internal pricing
  • Service Catalogues and SLAs (service level agreements), in use to influence behaviour and demand for services provided by the unit
  • Efficiency improvements and changes in financial processes
  • Raising quality in processes by eliminating non-value adding tasks and defining clearer roles and responsibilities

 

Mapping and restructuring of the purchase-to-pay process within an international group

 

When PS Provider was hired by the client, the group was in a situation where it was heavily influenced by the prevailing economic situation and business environment. This meant that the company adopted and implemented a range of initiatives to increase revenue and review costs. One area that was identified with a good potential for improvement was the process Purchase to Payment (P2P). PS Provider was responsible for running a process mapping project that mapped the entire purchasing process within the European operations. Information collection was conducted primarily through workshops with larger groups of employees and supplemented with individual focus interviews with selected employees. Thereafter, PS Provider compiled the process maps and analyses and supplied material for the following:

 

  • Implementation of a new standardized purchasing process and purchasing organization with clear roles and responsibilities
  • Changes in purchasing behaviour and establishment of extended "corporate governance", i.e. improved internal control and management of purchases
  • Increased contract loyalty, reduced number of suppliers and the number of articles available for order
  • Automated processing of supplier invoices through the creation and establishment of standardized, group-wide administrative processes
  • Minimization of the administration and resource consumption on invoices, both in central administration and in the business, in order to focus on their core business. Increased share of e-invoices

 

The development of support processes within a government company

 

When PS Provider started the project, the client had a centralized finance function consisting of about 40 employees responsible for accounts receivable, accounts payable, accounting, payroll, and telephony directed at internal customers (regions and business areas). In order for the unit to develop into an efficient SSC, the management had identified a need to implement a number of measures. When PS Provider was assigned the project, a consolidation of administrative processes to a centralized unit had already occurred but the client had not yet established the structures and tools required for the unit to fully function as a SSC. PS Provider was responsible for a project that involved the mapping of all support processes in the central administration, and the development and implementation of a comprehensive improvement programme. Measures were also implemented in regional and local organizations. The aim of this project was primarily to establish the structures and tools required so that the centralized function could be run like an efficient SSC towards internal customers. Key elements of this work included establishing a successful customer-supplier relationship with clear roles and responsibilities. It also required well-defined (and communicated) services, interfaces and a pricing model that controlled and encouraged rational behaviour. This was done through a detailed process mapping, including the identification of areas for improvement. The aim was to develop standardized and efficient processes with a high degree of automation that promoted good internal control and a high quality of deliveries.