Real World Insights from the SEPSM Methodology Order to Cash For sales fulfillment, accounts receivable and collections. In the consumer packaged goods industry, Genpact’s SEPSM cuts preventable deductions (e.g., spoilage, pricing errors, fines and fuel surcharges) by 50 to 75 percent. For a $5 billion company, this translates into $15 million to $20 million in increased earnings. The SEPSM uses analytics to identify root causes of deductions identify and prioritize improvement areas, and apply upstream process fixes—for example, reducing weighing, packing and dispatch issues at the warehouse, routing issues at the carrier, and inconsistencies in the receiving process at the client site. Click here, to know more about our Order to Cash capabilities. Source to Pay For procurement, supply chain management and accounts payable. For a $5 billion manufacturing company, the SEPSM methodology can reduce purchase spending by $50 million to $150 million over three years and deliver an increase of 1 to 3 percentage points in margins. Genpact’s Source to Pay SEPSM helps clients achieve such results by improving performance on key metrics like concentration of spending, usage level of electronic auctions, purchase order cycle time and vendor scoring. For example, Genpact concentrates on increasing the percentage of purchasing done under negotiated rates with preferred vendors. The SEPSM also addresses availability of critical materials and services, mitigating business continuity risk. Click here, to know more about our Source to Pay capabilities. Claims Most claims executives agree that over 4-5 percent of claims have leakages in individual or interconnected processes; if addressed, it could lead to potential savings opportunities of $100 million for a company with $2 billion in paid losses. Yet most companies have not institutionalized enterprise process controls for creating feedback mechanisms that address entry errors, fraud, gaps in payment practices and reinsurance recoveries. Click here, to know more about our Claims Management capabilities. Collections Despite the return from collections analytics being disproportionately high to investment, companies typically don’t have a strong analytics practice around critical operating metrics like cash flow and interest cost. Understanding these critical operating metrics can lead companies to a smarter risk based settlement strategy. During the late stage, targeted risk based settlement can reduce charge-offs by 20-40 bps. Click here, to know more about our Collections services. Record to Report Intercompany reconciliation is often a significant barrier to close. Resulting disconnects such as double cost booking, inflated margins due to lost costs, and lost time having to re-state results impact both process efficiency and effectiveness. Optimizing the process, policy and technology interplay can drive down intercompany disconnects. Best practices including automation using ERP, use of internal automated billing, defined transfer pricing, simplifying currency translations and performing ongoing versus quarter-end reconciliation creates high visibility and can drive down disconnects by more than 90 percent. Click here, to know more about our Record to Report services.