This is the story of WNS’ CFO Advisory Services strategically transforming the controllership model and finance operations for a global insurance broker, leveraging automation and standardization to streamline Accounts Payable (AP) and Record-to-Report (R2R) processes.
As we know…
The financial services and insurance sectors are continuously evolving, with companies striving to optimize their Finance and Accounting (F&A) operations. This challenge is amplified for firms managing finance functions across multiple countries, where varying regulations, complex processes and the need for rapid, accurate reporting are paramount.
Standardization, automation and data-driven decision-making have become critical. Leading organizations seek to transform their finance operations from purely transactional to strategic enablers of business growth.
The challenge for our client was…
Managing its financial operations spread across multiple countries and business entities. The issues were widespread across several core processes, including AP, payments authorization, month-end close and balance sheet reconciliations.
Finance Team
- Limited Maturity of Finance-as-a-Function and In-house Shared Services Center (SSC): Limited maturity of the finance function and SSC hindering scalability and efficiency
- Lack of Transformation and Change Adoption: Traditional ways of working impeding scalability and process standardization, leading to inefficiencies
- Key Person Dependency: Knowledge concentrated among select individuals, posing a risk of operational disruption
- Tactical Interaction Model with Business Units: SSC teams function as task executors rather than process owners, limiting their ability to drive value
AP
- Low "Paid on Time" Percentage: Difficulty in achieving timely payments, leading to non-compliance with standard payment terms
- Delayed AP Subledger Closure: Delay in month-end closure for AP, adversely impacting financial reporting
- High-volume, Low-maturity Process Design: A cumbersome and not fit-for-purpose invoice processing system, causing a multi-fold impact on downstream finance business partner teams
R2R
- Limited Process Visibility: Limited visibility into month-end close activities, affecting decision-making
- Long Month-end Close: General ledger closed on Business Day (BD) +8, significantly longer than the industry benchmark
- Suboptimal Reconciliation Processes: Balance sheet management needed to improve, and suboptimal reconciliation templates further hampered the financial close process
Stepping in as the transformation partner…
WNS’ CFO Advisory Services – powering Artificial Intelligence (AI)-led finance transformation and risk management solutions – comprehensively transformed the client’s controllership model and finance operations, focusing on process standardization and automation.
Finance Team
- Re-defined Process and Ownership Model: Re-defined the process and ownership model to create a more streamlined, accountable and globally consistent approach to operational management across the organization. Key components included:
- Global Process Owner: Introduced the Global Process Owner (GPO), enabling global control, compliance and process standardization
- Robust Support Model: Established critical support teams such as the transformation team and master data management team. Introducing the transformation and change leader complemented the GPO’s efforts to drive standardization and adopt new ways of working
- Unified Process Design: Created the “One Organization-One Process” design, with the SSC spearheading the standardization effort
- Re-aligned Interaction Model: Re-aligned the interaction model with business entities and stakeholders to support the new process and ownership framework
AP
- Vendor Master Team Creation: Carved out a dedicated vendor master team, segregating duties
- Invoice Consolidation & Automation: Moved leading suppliers to a consolidated invoice model, reducing transaction volumes and automating invoice processing
- Payment Term Rationalization: Rationalized payment terms, improving cash flow and ensuring compliance with standard payment terms
- Supplier Payment Process Re-design: Re-designed and automated the payment process, significantly improving efficiency
R2R
- Critical Path Mapping: Mapped out the critical path of month-end tasks and re-sequenced them, streamlining the process
- Bonus Accrual Automation: Automated the bonus accrual process, reducing manual effort and errors
- Re-engineered Intercompany Processes: Streamlined intercompany transactions, reducing processing time
- Payroll Process Streamlining: Optimized the payroll process, further accelerating the general ledger review
- Balance Sheet Reconciliation Enhancement: Enhanced templates and governance processes for balance sheet reconciliations, improving accuracy and timeliness
- WNS TRAC eClose Implementation: Introduced WNS TRAC eClose to enable real-time tracking of month-end close tasks, increasing transparency and contro
Implementation of this transformative solution…
Delivered significant, measurable improvements across the client’s finance operations, including:
-day reduction in the month-end close cycle
percent automation of month-end close tasks
~ percent capacity creation for more strategic work
-day acceleration of AP close
> percent reduction
in early payments
>USD
worth of average working capital improvement
percent improvement
in automated invoice processing
percent cross-trained
backups for critical activities
global policies and standard procedures
developed
reconciliations factored in through standardized and enhanced templates that tracked open items and their aging
The WNS team delivered a significant amount of change in a short time, overcoming resistance to transform legacy Finance & Accounting processes. They implemented new systems, documented processes, and identified key areas for improvement, leading the team pragmatically toward better ways of working. Their hands-on approach, including time spent on-site, was crucial in driving progress. The team also drove impactful solutions in Purchase Ledger, gaining vital momentum and acted as a catalyst for change. I truly enjoyed working with them and look forward to future collaborations.
—Finance Project Lead, Global Insurance Broker
Next steps: Driving financial excellence through optimization and innovation
Building on the success of our initial engagement, the next stages of our collaboration will focus on system and data optimization and introducing new technology and analytics. We will optimize the use of the enterprise resource planning system, segregate duties, improve control effectiveness, explore purchase order-based invoicing and establish key performance indicators. Overall, we will optimize the cost of delivery of the current operating model.
Additionally, we will introduce a case management solution for query resolution, explore business intelligence solutions for reporting, deploy hyperautomation solutions to automate manual processes and implement a tool for duplicate payment identification.