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Financial Transformation For Reduced Spend
Client Overview
A publicly traded MLP in the midstream industry operating nine different business units.
Deployed Capabilities
Regulatory & Compliance
Transformation
Supply Chain
$13MM Savings
Strategic procurement and supplier management delivered over $13MM in cost savings per year.
SOX Compliance
Improved internal controls and segregation of duties addressed our client’s compliance issues.
Future Proof
Our robust P2P process provided a strong foundation for future compliance efforts.
The
Challenge
Our client was facing several challenges in its Procure to Pay (P2P) process, leading to a lack of internal controls, segregation of duties issues, and slow payments to suppliers, causing business disruption. Our client was struggling with nine different business units, each using
manual and non-standard processes, resulting in poor visibility to spend and outstanding payables. There were opportunities to reduce spend with strategic procurement, but the lack of a robust P2P process hindered our client’s ability to achieve this goal.
The
Custom
Solution
We designed a robust P2P process that created efficiencies through automation, improved internal controls, and enabled cost reduction through strategic procurement and supplier management. We designed a comprehensive solution that addressed the challenges faced by the company. This design included:
1) Current State Assessment (People, Process, Technology) – We reviewed and documented the current state environment, benchmarked against best practices, identified gaps, and prioritized key opportunities for improvement.
2) Spend Analysis and Opportunity Assessment – We analyzed our client’s AP data, segmented spend by category and supplier, and identified opportunities to reduce costs by aggregating spend, consolidating suppliers, and leveraging competitive markets.
3) P2P Design – Our team defined P2P policies, processes, organization, and KPIs, developed technology requirements, and selected a P2P workflow tool. We developed and launched a P2P implementation plan and a three-year strategic roadmap to ensure a successful implementation.
The
Impactful
Results
Cost savings in excess of $13 million per year for our client through strategic procurement and supplier management. The improved internal controls and segregation of duties addressed our client’s compliance issues and provided a strong foundation for future compliance efforts.
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