Re-engineering F&A, Procurement and HR Operations for Scalability

A Four-year Transformative Odyssey of Achievement through Co-creation

This case study encapsulates the collaborative journey of WNS and a US-based hydro-equipment manufacturer as we turned scattered and disparate Finance and Accounting (F&A), Human Resources (HR) and procurement practices into a centralized and significantly more automated system. The objective was to expedite invoice resolutions, improve customer experience and scale operations.

In the era of flourishing green technologies…

Businesses are thriving in a wave of innovation. Local authorities and industries are implementing pioneering solutions to achieve their net-zero, de-carbonization and circularity goals, fueling the demand for sustainable business. However, fragmented supply chains and ad-hoc / manual processes impede operational efficiency and productivity.

For a leading hydro-equipment maker…

The challenge was managing its F&A, HR and procurement operations scattered across multiple locations, operating companies and lines of business. These functions wrestled with ad-hoc and manual processes, information silos and a workforce only partially equipped with the requisite knowledge.

The repercussions of this disjointed approach were evident in the client’s Enterprise Resource Planning (ERP) platform, which held invoices in limbo due to information gaps. Over a six-month period, the cumulative value of these stalled invoices amassed to a staggering USD 18 Million.

Dispersed, disconnected processes, along with diverse systems and policies, and a lack of critical-to-quality parameters spawned non-standardized practices and operational inefficiencies. Consequently, documentation, accountability and visibility into crucial business facets suffered.

Key challenges across the three functions encompassed:

F&A and HR

Accounts Payable (AP)

Absence of formal procedures to address blocked supplier invoices resulted in >75 percent of the invoices being over a year old.

Record-to-Report (R2R)

Ad-hoc practices at different locations impacted reconciliations, the accuracy of reports and timelines.

Payroll

Manual handling of new employee records led to payroll delays.

HR

Workflow was hampered by disparate activities, multiple hand-offs and high Turnaround Times (TAT).

Procurement

Raising Orders

The manual and fragmented nature of sales and purchase order processing resulted in error-prone documentation.

Employee Skilling

Manual training and assessment methodologies led to heightened reliance on subject matter experts.

Team Structure

Distributed ownership and a lack of clear sub-processes translated into protracted TAT and errors across all stages.

The client sought to consolidate and standardize its systems – streamlining the F&A, HR and procurement workflows – and establish a scalable, adaptive model for a dynamic business milieu.

Stepping in as a co-creation partner, WNS leveraged…

Its in-house transformation frameworks and partner ecosystem of intelligent technologies to re-invent the client’s F&A and HR functions. Concurrently, WNS Procurement – the high-impact, digital procurement ecosystem and supply chain capability at WNS – collaborated with the client to transform the procurement landscape. Our performance model harmonized service-level agreements and key performance indicators with the client’s commercial and financial goals.

A team of ~60 Full-time Equivalents (FTE) consolidated and centralized F&A, HR and procurement services spanning diverse platforms using a cost-effective shared services model. This was bolstered by robotic process automation woven into various work streams to unlock productivity and efficiency. A case management tool was deployed to integrate invoice processing and helpdesk activities to ensure a seamless supplier experience. Finally, WNS developed and deployed comprehensive business process documentation, with a periodic review mechanism.

Highlights of our solution included:

The large-scale transformation unveiled...

Cohesive, centralized F&A, HR and procurement practices, fortified by automation and trained FTEs, driving customer, supplier and employee-friendly policies. Key benefits included:

Augmented Scalability

• >USD 130 Million in total transactions handled by the collections team
• >8,400 transactions handled across all activities in HR shared services
• >70,000 transactions handled annually in payroll

Amplified Decision Support

• Real-time monitoring and efficient resource allocation to resolve blocked invoices
• Greater visibility for clients: Status, aging and open liability at the entity, profit center and location levels

Elevated Experience

• 10/10 VoC scores consistently received
• ~10 percent reduction in escalations
• ~5 percent faster TAT across sub-processes
• >90 percent reduction in payroll TAT for processing rewards and recognition
• Enhanced supplier experience due to improved on-time payment

Enhanced Process Outcomes

• 34 percent reduction in overdue invoices
• 20 percent increase in auto cash application through process improvement
• 50 percent reduction in purchase order / purchase query resolution TAT
  • Outstanding invoice value halved down to USD 9 Million
  • The aging period of invoices reduced from a year to <90 days
  • >40 percent reduction in the daily average of outstanding blocked invoices
• ~80 percent reduction in TAT from FO automation
• Reduction in payroll cycle time
• Optimization in span control
• 100 percent achievement in accurate and timely service delivery
• Integrated HR helpdesk established for Tier 1 and 2 queries