Creation of a Global Business Service Organization

(US$4.5 billion Food Packing Company)
Challenge:
  • This company was experiencing declining profits due to industry consolidation.
  • As sales were flat, the Executive Team wanted to reduce SG&A (Sales, General and Administrative) expenses by 20% to improve profitability.
  • To accomplish this, the company wanted to build a Global Business Service (GBS) organization.
  • To get started a Long-Range Plan was needed.
Highlights:
  • Benchmarked the client’s SG&A expenses against peers and best in class companies.
  • Assessed how data analytics, robotics process automation (RPA) and other technologies could drive more efficiency at the GBS organization.
  • Interviewed Executive Team to assess the current state as it referred to process and systems standardization, the type of organization in place (e.g., regional/global/functional, process-based), the degree of readiness for change, among others.
  • Developed three implementation options including the return, cost, risks, and timeframe.

Outcome:

  • The Long-Range Plan included:
    • Consolidation of back-office work.
    • Renegotiation of contracts with suppliers.
    • Standardization and improvement of core business processes.
    • Phased implementation of RPA.
    • Phased standardization of ERP systems
    • Labor arbitrage
    • Phased 20% reduction of SG&A expenses.

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ECM Consulting Group | United States