Business Challenge: Lack of clarity on best practices followed with practices around purchase orders
One of our leading clients from the telecom sector, wanted to understand what are the best practices followed by peer group companies, when it comes to effective management of purchase orders.
Situation: The client wanted to gain insights on the possibilities of eliminating purchase orders
The client wanted to understand the possibilities of eliminating the usage of purchase orders. They also wanted to evaluate why elimination could be a good idea, also explore more about which categories could this be implemented for. Also of interest was to gain insights on the possible alternatives for purchase orders and the benefits they offer.
Approach: Conducted a detailed bench-marking exercise to understand the best practices followed by peers, and developing appropriate recommendations
We conducted a detailed assessment of current practices followed in the industry specific to usage of purchase orders. In addition, we conducted deep-dive assessment specific to leading peer-group companies in order to understand typical scenarios where purchase orders are eliminated, pros and cons of elimination, preferences based on categories, alternative practices etc. We developed recommendations for the client at an individual category level.
Impact: Client gained detailed insights on the current purchase orders practices and identified potential benefits of eliminating them
Based on our assessment and recommendations, the client was able to gain detailed insights on current trends around purchase orders and what benefits do other peer group companies achieve through eliminating them, or implementing alternative solutions. We developed detailed recommendations which the client had implemented in order to achieve benefits such as reduced invoice approval time and processing cycle time reduction.