Using the most appropriate Execution Management System is key to achieving the best results possible for your business, as Celonis explains.
It is often the case that companies do not realise their own inefficiencies when processing data. It could be a lag in the time it takes to answer a query, it could be a rework of the invoice process, duplication of orders or static Excel documents that are not being updated in a timely manner. All of these can contribute to poor payment performances resulting in errors that can be costly.
Operating across multiple regions can make it difficult to achieve an accurate view of your own supply chain and service centres. When working from static spreadsheets each service centre could be reporting different data and not giving a complete overview or scope of the business. Unhappy customers are a direct cause of breakdown in product delivery; unhappy businesses are the result of missed payments and dwindling profits. Unifying reporting and data input across a whole organisation can alleviate the two.
Choosing the right Execution Management System (EMS) that will help you unlock capacity and maximise business performance is essential. No two journeys are the same but working with a team that can help you utilise the data at your disposal, unlock that capacity and in turn streamline payment methods, is the first step in achieving these goals.
Case Study: The Delphi Technologies project
A real-world example of this can be found with the work Celonis undertook with the aftermarket division of Delphi Technologies, now taken over by the automotive giant Borgwarner. They help customers from the aftermarket to be one step ahead in servicing and repairing advanced car systems using leading service solutions.
Delphi Technologies operate in 150 different regions around the world, and have circa 650 employees, with a diverse customer base and a product range supplying automotive components throughout the vehicle lifecycle.
The scope of the project was agreed upon – to identify duplicate and erroneous payments. Delphi had to quickly gain access to their data which was on disparate systems, and even in spreadsheets. It was essential to group this in one place to give its distribution centres a complete overview. Product distribution is time sensitive and it is essential to get the product reporting as streamlined as possible.
The solution was to extract two years’ worth of data from Delphi’s accounts payable systems and to build a duplicates payment dashboard using specialist machine techniques. The dashboard looked at double payments and erroneous postings with a focus on currency or VAT postings.
Delphi has several thousand customers using multiple currencies over several regions. The original process map showed that it had a high rework rate. An action engine alert was incorporated to email the relevant person when any one of these occurrences happened.
Working with companies that operate internationally who are processing orders in multiple different currencies can be tricky, and organisations can have the perception of having good 51 systems in place to monitor these processes. But having full visibility of the accounts payables process can be very different indeed. The dashboard became operational within eight weeks of the project starting and identified savings of over US$1m.
By undertaking this project they were able to highlight where they had bottlenecks in their systems, and react to them quickly to resolve the problems. This became even more important in light of COVID-19 and travel restrictions. They were able to improve their deliveries and put away times, leading to improved availability within their business. And more importantly the increased availability generated higher sales and effectively more margin for the business.
EMS played a key role in these gains. By undertaking the journey with a company like Celonis who understood how to group these systems together, Delphi was able to pivot quickly to rectify the problems. By finding the right partner you will gain a welcome extension of your team, who can unlock key value within your business.
Celonis’ EMS is helping companies manage every facet of execution management, from analytics to strategy and planning, management, actions and automation. Powered by its market-leading process mining core, the Celonis EMS provides a set of instruments and applications, the Celonis Studio and platform capabilities for business executives and users. The Celonis headquarters are in Munich, Germany, and New York City, USA, with 15 offices worldwide.