Strategic PO Management framework optimizes business leading to AUD 8 million business value

Client Background

Client: A multinational development, construction,  and infrastructure company
Key Products & Services: Asset and property management, building, engineering, infrastructure development.
Area of Operations: Australia, Asia, US & UK

Challenge

Fragmented Framework: The client had a complex structure as it operated across geographies, which resulted in a fragmented framework of diversified processes augmented due to mergers & acquisitions; therefore, standardization of operations across the regions was a critical challenge.

PO Management process:

The continuous operational challenge faced by the business query handling team as it received high volumes of monthly PO adjustments, PO cancellation, and PO closure requests caused the problem in vendor management and financial reporting.

The client had a manual AP process and multiple inoperative POs, with paper-based invoices sent to business contacts leading to delay in processing and approvals, eventually low Paid on Time% across regions.

The tedious and time-consuming AR and accounting practices were prone to human errors and lacked controls.

During the optimisation process the visa and travel restrictions constrained knowledge transfer and knowledge adaption to redefine the PO management framework.

Solutions:

Simplified Framework

The first step of speedy disbursement of essential infrastructure required a seamless transition to working from home model resulting in simplification and standardization of processes across regions for 230+ employees.

Next the Wipro merged UK & US processes and cross-trained the team members in the functions of both the regions to have smooth long-term accounts payable operations.

PO Mass Closure

Initially Built a dedicated team that ran a PO mass closure project in coordination with the customer, through which it created a procedure to identify all open POs to clear them from the finance system.  

Then the project team proceeded with Oracle EBS R12 and enabled remote knowledge transfer as it was hindered due to travel restrictions during  the planning phase of the project

During the execution and initial analysis, the team mapped and monitored the aged POs and in coordination with the business that uncovered multiple open and inoperative POs.

Finally end-to-end process is set up to continuously  map and monitor 100% overbilled, GRNI, duplicated, leading to transformed buyer POs management framework. The outcome is closure of AUD450 million + open POs for UK & Australia.

In addition to  processes, the team further implemented 70+ innovative automation projects,100+ smart scripts, and 15 bots within the system to save cost, avoid errors and human dependencies for accounting activities for the client.

The project achieved this core operational excellence to enhance productivity and efficiency by leveraging Wipro’s business operations platform for outsourced process Base)))™ that reports for book close monitoring and analysis, as well as error analysis and identifying preventive actions. Wipro Base)))™ Prism supports real-time access to MIS and Wipro Base)))™ Govern derives quick insights and actions for operational governance.

Business Impact

• AUD 8 million worth of business value delivered
• Reduced open POs worth AUD450 million + for UK & Australia
• Improved Paid on Time from 58% to >95% in Australia
• Unapplied historical AR transactions reduced from AUD 22Mn to AUD 1.48Mn
• Reduced Balance sheet un-cleared open items from AUD~30 Mn to < AUD500k