Accounts receivables transformation for a leading agro-chemical company in India

Highlights

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Roughly 2500 manhours saved (~30 per cent + savings)

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Cycle time reduced by 70 per cent

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Average handling time reduced by 60 per cent

Client challenge

The client wanted to implement a leaner and swifter end-to-end process for managing accounts receivables.

Front-office challenge
Middle-office challenge
Back-office challenge

Lengthy timelines for customer onboarding due to collation of input required for customer master, credit limit computation and manual customer risk assessment

Manual interventions in each level two (L-2) process, leading to inefficiencies
Slow process velocities resulting in delays
High dependencies on multiple stakeholders, thereby complicating workflows
Lack of effective reporting mechanisms for regular tracking

Lengthy dispute resolution process, credit note processing, master data management and recovery

KPMG in India’s approach

KPMG in India brought together relevant capabilities including experts from digital transformation, global business services and finance to deliver a structured and comprehensive transformation. KPMG in India addressed the challenge in two phases.

Phase 1: Diagnostic phase

Understood the as-is state of the order-to-cash (O2C) process
Carried out a gap assessment to benchmark current processes against industry practices and identify shortcomings and scope for improvement
Hypothesised potential pain-points

Phase 2: Transformation phase

Established the fundamental reasons behind issues and pain points via root cause analysis
Re-engineered current state processes to present the future state, keeping target operating model (TOM) layers in mind
Conducted ‘voice of customer’ sessions with marketing stakeholders to understand their expectations from the finance function
Carried out process deep-dive sessions to identify opportunities for improvement
Devised and introduced the shared service centre (SSC) scope

Created the business requirement documents and implementation strategy

Result

Roughly 2500 manhours saved, with an average of four manhours/volume across processes (~30 per cent+ savings)
Cycle time reduced by 70 per cent
Average handling time reduced by 60 per cent
Implementation of application programming interfaces (APIs) to validate a certain set of documents submitted by the customer
Eradication of manual touch-points by implementing technical interventions and systems
Introduction of an SSC to centralise several day-to-day tasks

Why KPMG Connected Enterprise?

The end-to-end accounts receivable transformation demanded:

Cross-functional collaboration to integrate various functions seamlessly, such as finance, sales, and customer service

A sector-specific approach to address the unique needs of the agro-chemical industry effectively

Implementation of digital use cases to eliminate manual interventions and enhance process efficiencies, such as automating customer onboarding and credit limit computation

A structured and comprehensive methodology to streamline operations and support marketing and finance effectively

As a customer-centric, tailored-by-sector approach to digital transformation, the KPMG Connected Enterprise facilitated integration across the client's sales, finance, and customer functions, facilitating transparency, ease of operations, and quick resolutions.