Challenge:
Top executives of a Fortune 500 manufacturer of home improvement and building products needed to prepare the organization for an upcoming ERP implementation. 'Procure to Pay' processes were not stable or consistent enough to begin the effort... needed to pilot a change method / approach to ensure ERP success.
Solution:
The KMC team developed an analysis-focused project with services leadership for the payables functions (owner of the problem) and with operations leadership (owner of the changes to be made in the field) to ensure any new solution was quickly and consistently implemented. They identified critical drivers of process breakdown (e.g., most payables issues limited to small number of specific locations, a select few 'systemic' issues that impacted all locations) and used these insights to pilot solutions at select locations to test process changes and implement the rollout process.
Results:
- Over 25% improvement in speed and compliance in the first three months of implementation.
- Developed a scorecard of performance metrics (e.g., Inventory, Vendor, and PO Performance based) that focused on process execution and accuracy, providing a solid foundation for strategy-driven change in advance of the ERP effort.
