Analytics-driven order management drives customer loyalty

DESIGN ∙ TRANSFORM ∙ RUN

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Order Management reimagined through a lean digital architecture: Genpact Intelligent OperationsSM

Gianni GiacomelliSenior Vice PresidentHead of Genpact Research Institute

Chief Marketing Officer

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DESIGN • TRANSFORM • RUN 2© 2015 Copyright Genpact. All Rights Reserved.

We design, transform and run the intelligent enterprise operations that strengthen our clients’ competitiveness

About Genpact ► Overview

*US$22B is a cumulative figure since 2006

*Cumulative figure since 2006

Wh

at w

e d

o Help leaders of some of the largest enterprises

…design, transform and run

…business-critical operations including the very complex and industry-specific

Ho

w w

e d

o it

Smart Enterprise Processes (SEPSM) crystallizes operational and domain expertise, rigor inherited from GE

Achieve Intelligent OperationsSM through Systems of EngagementTM, Core IT and Data-to-Action AnalyticsSM

The strength of a large company, but flexible solutions; top management directly involved with clients

Unbiased and agile solutions limit upfront costs, reach results faster and enhance adaptability

Our impact

We make clients more competitive:

• More efficient, effective

• Able to better manage costs, risks, regulations, and support growth

The results: US$22B*+ of impact for 800 global clients

DESIGN • TRANSFORM • RUN © 2015 Copyright Genpact. All Rights Reserved. 3

Customer experience, perfect order, cost and compliance challenges call for more robust order management process

Order Management ► Challenges

Customer experience

• Growing customer demand for quality and just-in-time inventory, increased competition (e.g. private labels from retailers), diverse channels

• Increased use of supplier scorecards by customers to measure performance

Perfect order

• Difficulty to coordinate and synchronize end-to-end supply chain processes

• Insufficient market demand / forecast accuracy• Insufficient cross-functional collaboration• Poor supplier performance (quality and on-time delivery)• Integrating agile, fast-paced, and emerging technologies with legacy

systems

Compliance, cost and efficiency

• Systems/processes not designed to detect fraud or waste• Escalating IT costs – disparate systems maintained to cater for multiple

delivery channels• Escalating labor costs and supply chain costs• Lack of standardization due to regional/business unit requirements• Lack of integration between supply chain and product development


Intelligent operations sense, act and learn from their actions. They become continuously more efficient and effective

CFO ► Solutions ► Intelligent operations

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SenseBank front office operation: Delays in processing specific transactions is proactively fed to branch clerks or contact center agents

Order to cash and credit risk: Risk profile of debtors is dynamically adjusted for regional or sector specific risk of default and provided to collections groups or asset managers

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1

2 ExecuteOrder to cash: Collection or investigation cases can be dynamically allocated to right-skilled and appropriately located individuals based on their complexity - and previous history of performance by type of collector type

Bank front office operations: Inbound client interaction (e.g. query) routed to optimal channel (self service, level 1 clerk, expert) based on effectiveness and cost derived from data driven experience

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LearnFresh data on what results were achieved is compiled, visualized, and modeled against how the work was done. Controlled experiments are run to continuously test better execution strategies

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A perfect order every time: Genpact end-to-end order management solution embraces digital to achieve impact

Order Management ► Solution

• Order entry and fulfillment• Pricing, contract management, master data management• Allocation and product supply• Logistic administration• Inventory optimization

Eff

icie

ncy

• Better and faster orders through automated, no-touch order entry

• Point solutions for order visibility proof of delivery management,etc• Data massaging and integration services e.g. vendor managed

inventory, global available to promise alerts etc.• Order and customer portal

• Proactive controls on end-to-end order management leveraging a supply chain control tower solution

• Order management analytics including on-time-delivery/perfect order index, network optimization, forecasting modeling; target operating model design

• Genpact Smart Enterprise Process (SEPSM) framework for order management to pinpoint areas of opportunity

• Define, measure, plan and improve with Genpact’s customer experience, sales experience, complexity, and risk framework

Customer Experience

Order management

analytics

Visualization and supply chain control tower

Order management automation – better efficiency and perfect order leveraging

technology

Order Management Business Process Management services – better

efficiency and perfect order

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Revenue acceleration

Order Management ► Case studies

SolutionChallenge Impact

• High variability in customer order patterns impacting revenue/cash flow and inventory carrying costs

• Manual receipt of purchase orders from customers leading to low first-pass yield

• High percentage of back-order rescheduling accuracy errors

• Lack of workflow prioritization and reporting tools

Large European brewer

• Used analytics to derive customer patterns and initiated proactive customer follow up resulting in reduced inventory and faster revenue generation

• Built a new web-order platform and increased customer electronic data interchange adoption to drive efficiency and accuracy

• Developed a process to track and manage accuracy of back order rescheduling

• $10.5 million annual revenue acceleration

• $5 million annual reduction in inventory and forecast gaps

• Over delivered telesales yearly shipment revenue target by ~33%

• 10-15% increase in first-pass yield

• Unable to identify potential issues related to global order fulfillment, such as the risk of partial shipments or missing committed delivery dates

• The supply chain team were unable to map production to specific customer orders and identify risks

• The team could not take mitigating actions and was unable to achieve revenue projections with certainty

Ironshore, a U.S. commercial property and casualty specialty insurer

• Risk classification: Classified fulfillment risks, identified high-priority areas, focusing on orders in the current quarter, orders with material issues or inventory shortages, and resource alignment

• Process centralization: Standardized data collection across regions, implemented a bolt-on tool to track fulfillment risk

• Revenue acceleration of $75 million in a year

• Increased risk visibility by 65%

• Significant working capital impact


Productivity gains and enhanced customer experience



• Highly manual, unsustainable order entry process with only 2% of orders transmitted electronically

• High cost of processing orders ($16+/order) due to non-standard activities, numerous manual touches and longer processing time

• Product changes not updated resulting in outdated prices being used

Leading North America’s food and beverage company

• Developed a web portal tool to automate manual orders and create order entry process standardization

• Pertinent real time customer information through web portal

• Order entry process sustainability resulting in a more positive customer experience

• Export customers sales order automation rose from 2% to 99% in less than a year

• Cost of order processing reduced by 33% due to process standardization and automation

• Improved invoice accuracy due to real time product/pricing updates available on portal

• Customers provided self-service access to order information 24/7

• Complex processes with multiple legacy technology systems and tools

• 70 - 80% of processing time spent on data validation and seeking exception approvals

• Multiple order input formats with incomplete information leading to 19% request rejections

World’s largest greeting card company

• Implemented automation solution using the cloud-based technology of OmPrompt

• Standardized the order input templates

• Designed intelligent business rules for validation of requests and management of approvals and exceptions

• Compliant flow, fully validated orders to client’s ERP system

• 70% productivity benefit through automation

• >90% reduction in the lead time i.e., from 30 min to <3min (average)


Customer experience management



• Large and highly complex customer base with significant number of sub-processes causing multiple manual touches driving low first-pass yield, low productivity and high cost of processing

• Order fulfilment challenges with product availability and incorrect forecasting resulting in 33% of orders being incomplete

• High number of variations and exceptions in processes lacking proper metrics and analytics.

• Inadequate process documentation, policies, governance structure, cross functional linkages and performance measurement framework

Leading North America’s food and beverage company

• Re-engineered end-to-end, order to cash processes, addressing upstream standardization, automation and process simplification to drive productivity, and reduce complexity and overall cost of processing

• Transformed using Genpact’s proprietary CSCR framework to standardize, automate, simplify, measure to elevate end customer and sales experience, reduce process complexity and risk to increase topline growth, and reduce cost of processing orders

• Enhanced governance and controllership by reinstating policies and process adherence driving optimal process performance, reducing cost of operations and increase wallet share

• Topline growth: 1% revenue increase for the customer base where CSCR has been implemented

• Perfect order: Decrease revenue dilution by reducing order cut rate by 10% - benefit of $34.6 million

• Cost productivity: 33% reduction on cost of processing orders from $16+ to

$11.00 million• Cost productivity – Direct plant

savings - $4.3 million delivered


About Genpact

Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex and specific to a set of chosen industries. The result is advanced operating models that foster growth and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our Smart Enterprise Processes (SEPSM) proprietary framework helps companies reimagine how they operate by integrating effective Systems of EngagementSM, core IT, and Data-to-Action AnalyticsSM. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have grown to over 67,000 people in 25 countries with key management and a corporate office in New York City. Behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years.

For more information, visit www.genpact.com.

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© 2015 Copyright Genpact. All Rights Reserved.

Genpact Research Institute

The Genpact Research Institute is a specialized think tank harnessing the collective intelligence of Genpact – as the leading business process service provider worldwide - its ecosystem of clients and partners, and thousands of process operations experts. Its mission is to advance the “art of the possible” in our clients’ journey of business transformation and adoption of advanced operating models.

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