Case Study: Manufacturing
Reporting and Analytics Focused at the Entire Procure to Pay Business Cycle
The Client
The Company was incorporated in 1993 and is a holding company that operates through its principal operating subsidiaries, operations manufacturing, and financing. The Company is a manufacturer of commercial trucks, buses, diesel engines, custom chassis for motor homes and step van. Its defense unit manufactures military vehicles, and is a provider of service parts for all makes of trucks and trailers. Additionally, the company is a designer and manufacturer of diesel engines for the pickup truck, van, and sport utility vehicles (SUV) markets. The Company also provides retail, wholesale, and lease financing of its trucks. The Company operates in four segments: Truck, Engine, Parts (collectively called manufacturing operations), and Financial Services, which consist of both domestic and foreign finance operations (collectively called financial services operations). The Company has an annual revenue of $14.7B.
The Business Challenge
The Company had partnered with many Recovery Audit firms throughout its existence. All of the firms that were contracted demonstrated ability to review and audit accounts payable transactions at the corporate level. The Company’s diversified operating environment and its initiative to migrate its financial operations to a share services platform, necessitated management to look for and contract with a more diversified business partner that would provide insight into the migration to a shared services model and to provide extensive procure to pay audit solutions throughout all operating entities. Of particular concern and focus of management, was contracting with a firm that possessed and demonstrated extensive experience within the procurement business process and who had a proven track record providing a thorough supplier contract compliance review and audit. The Company was also seeking a firm that would provide insight into the process improvements, best practices, and the ability to manipulate the large data files resident throughout multiple systems.
The Solution
The Company ultimately chose Business Strategy, Inc. as their provider. This selection was made in 2001. The Company and Business Strategy continue its relationship today. During the tenure of the relationship, Business Strategy has recovered in excess of $75 million dollars. In addition to the recovery amounts, Business Strategy has worked in partnership with the company’s management during its transition to a financial shared services model and migration to a new Enterprise Resource Planning system. Business Strategy has provided insight into both migrations and has provided the Company with invaluable assistance. During the partnership with Business Strategy, they have continually provided the Company with detailed analysis of deficiencies throughout the procure to pay process that has significantly reduced the errors that previously existed. In addition, Business Strategy has provided the Company with reporting and analytics focused at the entire procure to pay business cycle.