Case Studies

Improving processing efficiencies for a leading paper products distributor

A leading distributor of paper products and office supplies had implemented a series of cost-cutting measures to increase profitability, achieve business process efficiencies and meet shareholder expectations. However, the initiatives left operating costs still higher than anticipated and resulted in little or no improvement in processing efficiencies or bottom-line productivity. The organization wanted to identify additional cost savings while achieving the efficiencies originally expected by streamlining business processes.

It was critical to identify process and technology improvements that could be implemented rapidly and show quantifiable savings in the near term. Additionally, it was necessary to develop an implementation plan or road map that would allow the organization to make these near-term benefits sustainable through an improved process and technology governance structure.

Through analysis of current capabilities as well as a review of process improvement initiatives to date, Impart identified core data and training issues that prevented expected results being realized. Significant reductions had been made with no personnel training for performing new business processes, resulting in a slippage towards old, inefficient processes as well as continued use of unnecessary processes. A lack of data governance limited the information technology team's ability to support new business processes or provide relevant information to support informed business decisions.

Impart applied relevant best practices processes against key areas - such as order-to-cash, procure-to-pay, and inventory management - to identify the potential cost savings and efficiency improvements available. An implementation plan was developed to obtain incremental improvements in the near-term timeframe of less than 90 days, and identify technology and training initiatives to drive even greater benefit from the improved business processes. Additionally, initiatives were implemented to fix the shortfalls in data governance and training. Potential benefits and associated implementation costs were prepared and presented to justify recommendations.