Case study · Manufacturing
Controls manufacturer saves $500K a year by streamlining order-to-cash
A global environmental controls manufacturer had process maps but little change where work got done. USC mapped its order-to-cash process across North America, Asia and Europe, then designed and installed a leaner future state.
Results
$500K+
in annual back-office savings
60%
reduction in false credit holds
Savings are annual.
The situation
The company wanted more productivity from its non-production functions, starting with the order-to-cash process in North America, and aimed for a 15%+ gain in salaried productivity.
What the assessment found
- Process maps not translating into change on the job
- Order-to-cash and procure-to-pay crossing every department
- False credit holds tying up customer orders
How the work was done
Analysis: follow the swim lanes
Reviewed information flows and transactions worldwide, focusing on order-to-cash and procure-to-pay because they cut across every department.
Process: design the future state
Mapped the as-is order-to-cash process for North America, Asia and Europe, then designed and implemented a streamlined future state.
60%
reduction in false credit holds
Management: make it visible
Introduced process monitors, weekly operating reports, action item management, customer service crewing guides and regular system audits.
“We had lots of high-level process maps, but were not seeing a lot of change at the point of execution. That's when we knew we had to go outside for assistance.”
Lasting impact
Order-to-cash ran leaner across three regions, false credit holds fell 60% and savings passed $500,000 a year. The company began automating sales order acknowledgements and discussed a follow-on engagement.
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