One of the largest garment
manufacturer & exporter from South Asia
Project Highlights
Company Type
One of the largest garment manufacturer & exporter from South Asia
HQ Location
Sri Lanka
SSC Location
Colombo, Sri Lanka
# of FTEs (at the end of setup)
80 (at start), later scaled to 250+
Functions Transferred to SSC
Finance & Accounting, HR, Procurement, IT & Quality
No. of Locations Consolidated in SSC
7 Business Areas, 36 units, 94 Processes decentralized across locations
"The organization faced challenges including scattered information sources, intricate systems, extensive manual intervention and controls, people-dependent operations, and inefficient payment processes."
Project Details
Challenges
- Multiple sources of information spread across 17 locations with complex systems/ processes due to multiple ERPs, manual intervention, manual controls & excel usage
- Highly people dependent processes with segregation of duties conflict
- Weak payment processes with un-scheduled payment runs, multiple bank accounts used
Approach
Phase 1 | 0-6 months
Blueprint Design & SSC Setup
Phase 2 | 6-12 months
Stabilization & Optimization
Phase 3 | 1 Yr onward
Expansion & Value Delivery
Expansion & Value Delivery
1. Blueprint created for process & headcount at a Tier 2 location. consolidation
2. Identification of process variations to drive standardization
3. Org redesign, Process ‘To Be’ design and documentation, resourcing, training, transitions & set up of Finance SSC
4. Year-end book/ audit managed by the SSC within 2 months of setup
2. Identification of process variations to drive standardization
3. Org redesign, Process ‘To Be’ design and documentation, resourcing, training, transitions & set up of Finance SSC
4. Year-end book/ audit managed by the SSC within 2 months of setup
1. Managing additional volumes & new BUs without increase in headcount.
2. Implementing KPI-driven metrics to measure SLA performance.
3. Implementation of SLAs, metrics tracking, dashboards for stabilized operations.
4. Paperless processing with imaging & workflow solution.
5. VSM (Value-stream mapping) for eliminating NVAs (Non-value-added).
2. Implementing KPI-driven metrics to measure SLA performance.
3. Implementation of SLAs, metrics tracking, dashboards for stabilized operations.
4. Paperless processing with imaging & workflow solution.
5. VSM (Value-stream mapping) for eliminating NVAs (Non-value-added).
1. Pending recoveries (VAT and Vendor balances) made up to USD 500 k in 24 months.
2. 80 FTE count of the SSC in phase 1, expanded to 200 FTE in Year 2.
3. Finance SSC is a successful use case for consolidation of other functions – HR, Procurement, IT and Quality.
4. SSC monetized through acquisition by a global IT/ ITeS major.
2. 80 FTE count of the SSC in phase 1, expanded to 200 FTE in Year 2.
3. Finance SSC is a successful use case for consolidation of other functions – HR, Procurement, IT and Quality.
4. SSC monetized through acquisition by a global IT/ ITeS major.
Outcome
USD 2.5 Million
Saves over 5 years
Saves over 5 years
> 30%
Headcount & cost optimization for F&A (consolidated + retained)
Headcount & cost optimization for F&A (consolidated + retained)
> 50%
Reduction in response time & cycle time achieved in 12 months
Reduction in response time & cycle time achieved in 12 months
< 1 year
Period in which investment payback was achieved
Period in which investment payback was achieved