How a media & communications giant improved its payments compliance and optimized discount capture by nearly $2M
A U.S. based and Fortune 500 media and communications company processes over $8 billion in vendor payments annually. Though the client had an early payment discount clause with its suppliers, less than 1% of it was used. Not only did this lead to significant revenue leakage, it also affected operating margins.
The client had not recognized these inefficiencies due to its legacy finance processes and practices, lack of synergies between functions, and a singular focus on faster turnaround times. This caused them to overlook opportunities that lay beneath layers of data.
Working together, the client and EXL mapped out a game plan by leveraging EXL’s “Intelligent Operations” framework, which orchestrates data analytics and practical digital to generate insights that enable businesses to make better decisions.
We identified three levers to address inherent inefficiencies:
- Redesign the workflow to enable synergies between functions and eliminate bottlenecks
- Leverage analytics tools to synthesize meaningful insights from data
- Redefine policies to hasten cycle time of invoices and drive efficiencies
EXL leveraged its proprietary Insights360TM analytics platform and other practical, fit-to-purpose digital solutions to:
- Create more visibility around unearned discounts through spend dashboards
- Identify high volume/high value suppliers and drive enrollment to e-invoicing and early payment discount programs
- Drive vendor consolidation and thereby optimize volume discounts
- Harmonize processes between functions to improve turnaround times, thereby driving efficiency
- Develop more accurate cash flow forecasting practices
Focus on insights-driven operations has significantly improved operating margins to the tune of nearly $2 million and led to a better customer experience.
- 62% increase in early payment discount captured
- 58%+ additional enrollment to e-invoicing
- 74% increase in suppliers on discount program for early payments
The client today has an active and more inclusive discount capture program with ongoing efforts to proliferate insights driven transformation across other business processes.