Working Capital Improvements Through Reduced Cash Leakage
Despite the best of ERP/BPM, the issue of erroneous payments continued due to the following reasons:
Volume
High data volumes due to multiple business units spread
across the country. Over 1 Million transactions over a year.
Velocity
High level of data fluctuation every quarter due to inputs
flowing in from multiple business units.
Variety
Diverse data transaction types made it difficult to mine data
for pattern identification.
SmartKatch’s ‘PayRight’ and ‘RecordRight’ was implemented for vendors and customers to address cash leakage problem through:
- Duplicates
- Forensics
- Vendor and Customer Master Management
Business Outcomes
After a rapid implementation in 4 weeks, this company was able to prevent $3.0 Mn in cash leakages within a year and continues to prevent duplicate payments every month. In addition,20% productivity improvement opportunities were identified in the Accounts Payable end-to-end process.
Enhances Financial Oversight and Controls
Implemented SmartKatch platform with multiple modules covering CommitRight, PayRight, RemitRight, Futures
Trading Analytics and Treasury Risk Analytics.
With a thinly staffed team, they were struggling to cope with the volume, variety, and velocity of data they were managing.
Volume
Huge volume of transaction data to be handled; global data
of the enterprise to be processed
Variety
Diverse ERP instances. Procurement from the unorganized
sector across diverse remote locations
Velocity
Sales in developed markets through multi-channels. Need to
maintain market leadership in a highly dynamic environment. Their
present system needed expert scripting skills which was expensive
and time-consuming
Their existing legacy system was replaced with The SmartKatch ‘PayRight’, ‘CommitRight’ and ‘RemitRight’ products.
Business Outcomes
Anomalies were consistently detected that escaped the first and second lines of defense. Yearly activities have now become weekly/daily : 51 times faster (90% efficiency improvement in audit process
They were able to identify many exceptions which had cleared the 2 lines of defence. The ‘PayRight’ implementation replaced the legacy system that only did periodic sampling. Autonomous and continuous upstream data transfer and standard algorithm process resulted in savings of 3-5 man-months.
Comprehensive Coverage of Your Financial Data
Comprehensive Risk Intelligence was conducted
with SmartKatch platform covering PayRight, RecordRight and other retail industry specific modules.
The complex analytics covered sell-out, stock-out, vendor performance, margins and MRP analysis, product launches and delays, and dump and shrinkage analysis.
The challenges faced by this retailer
comprised the following:
Huge data volumes in retail and FMCG businesses –
unable to undertake data analysis
Inadequate support by in-house IT due to competing priorities
Relying on sample test with manual analytics
Variety handling manually, multiple business functions such as sales,
inventory, finance, procurement etc.
Existing legacy system was grossly ineffective
Integration with newly deployed Data Lake not fully explored
Business Outcomes
- Risk Intelligence at Scale: No Sampling – 100% coverage : volumes run into 20,000,000 transactions in a month.
- Automation: Data preparation, analysis, and reports fully automated resulting in significant productivity benefits
- Business Insights: Deep retail analytics generated insights on sell-out, stock-out, margins & MRP, product launches & delays, dump & shrinkage etc.
- Technology: Seamless integration with data lake ensure continuous risk intelligence
- Recognition from Audit Committee: Internal Audit team recognised by CEO and Board for pioneering Data Lake exploitation
Insights Generated for Continuous Process Improvement
A leading business group implemented the SmartKatch PayRight product to prevent cash leakage due to duplicate invoices and conduct forensics to identify tax errors.
The Group had large volume of transactions (approx.. 500,000 / year) on account of diverse business units spread across the globe.
Their business processes had undergone lots of change due to their transition to a Shared Services model to drive finance transformation. They also lacked continuous control for risk mitigation in Accounts payables.
Business Outcomes
- Risk Intelligence at Scale: More than $ 1 million cash leak prevented.
- Outcome Oriented: No vendor gets paid without their invoice being processed by SmartKatch.
- Efficiency: Process improvement projects derived after PayRight implementation – master data cleanup, PO process, Tax detail handling in ERP.
- Controls & Compliance: pre-audit CoE implemented; mitigation of cash leak around supplier payments, touch free upstream data transfer process and downstream audit trail.
- Governance: Operations reports and dashboards