Process performance

The purchase-to-pay process is a vital component of procurement operations, encompassing the entire journey from identifying the need for a product or service to making the final payment to the vendor. However, this process can encounter various execution gaps that hinder its efficiency and effectiveness such as maverick buying, bad on-time delivery, duplicate invoices and poor working capital management.

Process mining acts as a diagnostic tool that uncovers these gaps and provides actionable insights to enhance controls, optimize processes, and ensure a more streamlined and efficient P2P process overall.

Capgemini Invent used process mining to analyze the purchase-to-pay process of a major multinational food and beverage company, identifying huge variations in product prices for raw materials. Through these data-driven insights, the client was able to increase the standardization of product prices for raw materials by 32% and uniformly renegotiating 43 regional supplier contracts.

The order-to-cash process is a pivotal business cycle that begins when a customer places an order and concludes with the payment receipt. However, inherent complexities can lead to various operational challenges. This process grapples with challenges such as late delivery, late payment, and segregation of duty violations.

Process mining enables significant process improvements by offering transparency, performance benchmarking or predictive analysis, and supports continuous improvement. Ultimately, it streamlines operations, improves customer experience, and ensures efficient O2C processes.

Over the course of four months, Capgemini Invent used process mining to provide full process visibility and cross-departmental product traceability to inform decisions and improvement initiatives in the production process of a major multinational automotive OEM. This new transparency led to a 17% reduction in inventory adjustments, and continuous monitoring with the ability to analyze error-prone components reduced rework rates by 8%.

The source-to-pay process is a critical sequence of activities that involves sourcing, procuring and paying for goods and services within an organization. Efficiency in the source-to-pay process is particularly important for organizations with high sourcing volumes that are highly dependent on efficient sourcing for their profit margins.

With process mining, typical execution gaps in the source-to-pay process, such as poor supplier selection, non-compliant purchasing, lengthy approval cycles or poor contract management, can be targeted by providing visibility into the process and enabling complex process analysis.

With process mining, Capgemini Invent supports a major transformation project in the purchasing department of a leading multinational manufacturer, identifying significant automation potential and initiating actions that resulted in quick ROI by annual savings of over €400,000 per use case implementation on average.

The hire-to-retire process spans an employee’s journey within an organization, from recruitment to retirement. Execution gaps such as lengthy onboarding, inaccurate payroll processing and inefficient offboarding can occur. This improves employee experience and operational efficiency.

With process mining, companies can identify areas for improvement within the hire-to-retire process, enabling organizations to achieve strategic objectives such as providing tailored development opportunities and reducing early departures. This leads to improved employee experience and operational efficiency throughout the hire-to-retire process.

Capgemini Invent established expertise for process mining within the human resources function of an international logistics and mobility provider, defined a process excellence strategy and successfully drove optimization increasing automated execution for example in GDPR by 25%, for Promotions by 20% and for Onboarding by 31%.

The claims management process involves the handling and resolution of claims submitted by customers or clients. It involves several stages, including claim submission, validation, information gathering, approval and final settlement. However, challenges can arise in the process that affect efficiency and customer satisfaction.

Typical execution gaps in the claims management process, such as inconsistent approvals or inefficient communication, can be targeted through process mining.

During an 8-week, end-to-end analysis of the claims process of a US-based insurance company, Capgemini Invent was able to identify key areas for improvement and trigger optimization for over $23.2 million in annual savings.

The plant maintenance process aims to achieve optimal operational efficiency by minimizing breakdowns and ensuring high-quality working conditions while keeping costs to a minimum. However, challenges such as increased bounce rates, production line blockages, and faulty equipment hinder this goal.

The implementation of process mining can effectively reduce downtime by prioritizing resources according to the probability of failure and automatically addressing incomplete work orders. Multiple underlying causes can contribute to execution gaps, encompassing issues like insufficient material supply, delays in high-priority maintenance tasks, or inaccurately assigned work orders. These multifaceted causes are effectively discerned through root cause analysis with process mining and tackled.

With Capgemini’s process excellence methodology, pain points have been identified as well as quantified and subsequently translated into improvement areas along the entire plant maintenance process at a multinational pharmaceutical and life sciences company, significantly improving strategic KPIs such as productivity, reliability of assets and compliance.