Case Study: Transforming Finance and Procurement to improve operating performance and reduce SG&A expense.
Retail – Finance and Procurement Transformation - $12 Billion Omnichannel Retailer
March 31, 2020

Challenge

Formulate a transformation strategy based on an objective industry benchmark analysis to achieve world-class Finance and Procurement performance.

  • Reduce operating expenses $100m
  • Achieve top-decile performance against target KPIs (e.g. A/R aging)
  • Improve global financial close lead time (critical priority)

Approach

“Demonstrate a step-change in strategic execution speed and impact”

  • Shaped transformation strategy from Hackett SG&A benchmark study
  • Equipped, trained and mobilized Finance Transformation team and program
  • Executed Indirect Strategic Sourcing & Procurement Transformation, Finance Shared Services, Customer-to-Cash Value Stream Transformation and Hyperion global deployment projects

Results

$120M annualized P&L savings and $50M one-time cash delivered in 10-months”

  • $100M indirect procurement expense reduction
  • $20M Finance operating expense reduction
  • Set industry performance benchmarks in target customer-to-cash KPIs
  • Reduced global financial close lead time from 14 to 2 days

Final Thoughts

Expanded strategy and scope to ultimately deliver $492 million of EBIT growth over 3-year Enterprise Transformation program.

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