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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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