Client
Our client is a global business-to-business brand dedicated to creating cost-effective, professional in-house printing solutions. They have been delivering advanced printing solutions worldwide for over 60 years. From printers to faxes and multifunctional devices to managed print services, the client offers a complete range of high-quality, reliable products and services that help improve business productivity and deliver cost savings and efficiencies.
Challenge
Challenges faced by the client
The client was in the process of transforming their enterprise-wide operations on the S/4HANA public cloud. The primary goal was to optimize business operations in both finance and sales administration, involving 77 full-time equivalents (FTEs) spread across 11 countries in Europe. However, they encountered several significant challenges in the program:
- Legacy SAP R3 systems led to decentralized and manual processes in use across all 11 countries.
- The absence of a centralized data source resulted in limited access to real-time financial data and analytics.
- The client was burdened with high operational costs, primarily driven by manual and country-specific processes and personnel requirements.
- Processes were scattered across different functions, lacking proper documentation and standardization.
What the client needed
To address these challenges, the client required a collaborative and flexible approach to their transformation efforts. Hexaware presented a model that aimed to meet the following key objectives:
Collaborative Approach
- A collaborative and flexible working environment involving the customer, systems integrator (SI), and Hexaware
- A smooth and risk-mitigated transition, adhering to customer timelines
- Early support and hyper-care during the stabilization period
Transformation
- Accelerated transformation using application lifecycle management (ALM), Enable Now, and artificial intelligence/machine learning (AI/ML) initiatives like robotization
Alignment with Customer Strategic Imperatives
- Transparency and collaboration throughout the project
- Assurance that there is no fear of revenue cannibalization
- A service-oriented culture with the top management’s attention and involvement
The client, undergoing a transformation to optimize finance and sales administration across multiple countries, faced challenges rooted in legacy systems and fragmented processes. Hexaware’s collaborative and flexible approach and focus on transformation and alignment with the client’s strategic imperatives aimed to overcome these obstacles and facilitate a successful transition.
Solution
Hexaware’s business transformation solution included a comprehensive set of strategies and approaches, including:
- A flexible approach to establishing and operating the finance shared service center (SSC) as a foundational component of the greenfield S/4HANA cloud transformation program. The integration of best practices bolstered this approach.
- Consulting services to define the future state of S/4HANA, which involved creating process maps for the to-be-state and identifying areas where productivity could be improved. This process considered the functionalities of S/4HANA and the ecosystem of SAP cloud applications procured by the client.
- Implementation of Hexaware’s automation on the native S/4HANA platform, which harnessed robotic process automation (RPA) across finance and sales administration processes. Additionally, a cutting-edge cloud tool was developed to enhance collections prioritization and recoveries.
- Deployment of an automated translation solution to support multiple languages (English, German, Italian, Portuguese, Polish, French, Russian, Czech, and Spanish).
- Centralization and standardization within a hybrid SSC model, facilitated through right-shore delivery using a combination of near-shore (Poland) and offshore resources.
- Utilization of an experienced operations team, comprising domain and S/4HANA experts. This team played a pivotal role in anchoring the transformation program, ensuring a seamless and touchless transition.
Scope of work
The engagement scope focused on core finance and sales administration processes, including:
- Accounts payable
- Accounts receivable
- General accounting
- Project accounting
- Revenue accounting
- Budgeting and forecasting
- Cost accounting
- Travel and entertainment processing
- External audit support
- External reporting
- Sales administration processes (orders, returns, credit notes, warranty extension, customer and material master)
Hexaware’s comprehensive business transformation solution, encompassing flexible SSC setup, consulting for S/4HANA, automation, and process enhancements, streamlined core finance and sales administration processes while ensuring multi-language support and centralization, ultimately resulting in a more efficient and cost-effective operational model.
Benefits
Business Transformation
- 75% reduction in total cost of operations (TCO) for finance, enabling funding for S/4HANA implementation
- Committed 60% FTE reduction driven by S/4HANA and Hexaware-led automation, bringing down the FTE count from 53 to 21 over three years.
Operational Benefits
- 60% reduction in manual efforts
- 99% accuracy level
- 50% reduction in average handling time (AHT) across multiple processes
Hexaware’s business transformation efforts yielded significant benefits, including a substantial reduction in total cost of operations, a commitment to a significant decrease in full-time equivalents, and notable operational improvements such as reduced manual efforts, higher accuracy, and decreased handling times across various processes.
Summary
The client, a global B2B brand specializing in cost-effective, professional in-house printing solutions, embarked on an enterprise-wide transformation journey to optimize their finance and sales administration operations across 11 European countries. Hexaware stepped in to address challenges arising from legacy SAP R3 systems, decentralized processes, lack of centralized data, high operational costs, and scattered processes.
Hexaware’s solution encompassed the establishment of a flexible finance shared service center (SSC), consulting to define the future state with process maps and productivity enhancements, automation leveraging S/4HANA and RPA, multi-language support, centralization, and an experienced operations team. The engagement focused on core finance and sales administration processes, achieving remarkable results.
The benefits of this transformation were substantial, including a 75% reduction in the total cost of operations (TCO) for finance, enabling funding for the S/4HANA implementation. Additionally, a committed 60% reduction in full-time equivalents (FTEs) over three years and operational benefits like a 60% reduction in manual efforts, 99% accuracy, and a 50% reduction in average handling time (AHT) were achieved. Hexaware’s holistic approach streamlined operations, enhanced efficiency, and significantly reduced costs for the client.
Hexaware’s collaborative approach and comprehensive solutions successfully transformed a global B2B brand’s enterprise-wide operations, resulting in significant cost reductions, enhanced efficiency, and streamlined processes in finance and sales administration.
