5 Skills Every OTC GPO Needs in the Age of AI: Secret to adidas, Cargill, Huntsman, McCormick and Danone’s A/R Success


An insightful summary of how these GPOs made their Order To Cash future-ready while reducing costs, improving metrics and keeping their customers happy!

Contents

Chapter 01

Defining GPO’s Responsibilities

Chapter 02

Skill #1

Chapter 03

Skill #2

Chapter 04

Skill #3

Chapter 05

Skill #4

Chapter 06

Skill #5

Chapter 07

Summary

Chapter 08

About HighRadius
Chapter 01

Defining GPO’s Responsibilities


While the adoption of Global Process Owner is constantly on the rise, there is still a lot of mist around defining the core responsibilities of an Order-to-Cash (OTC) GPO.

According to the text analysis of 100+ job descriptions for OTC GPOs, here are some common expectations:

  • Establish and communicate a clear vision
  • Drive global deployment and adoption of the process, with regional and local requirements customization
  • Develop and translate strategy into operational goals, objectives, and process roadmaps
  • Identify necessary resources (people and capital) to support the implementation of these strategies.
  • Assess opportunities for continuous process improvement and expansion

PwC Report

GPO’s Dilemma: Inability to Leverage Technology

Order To Cash Executives today believe in the potential for technology. Here are the standard benefits expected from RPA and AI:

Productivity Savings

Moreover, according to another survey by KPMG, 62% of respondents from larger enterprises are already investing or are planning to invest in digital labor.

However, here comes the shocker. According to the data shared at the European Shared Services Leaders’ Summit:

Customer Experience Percentage

Surprised? Don’t be.

GPOs today are not ready to surf through the oceans of technology while keeping their A/R ship steady.

Here are 5 skills that helped Cargill, Adidas, Huntsman, Danone and McCormick rudder their Order To Cash in the right direction.

Chapter 02

Skill #1


In-depth Process Knowledge
Adidas’s Epiphany on Digital Transformation

Tracie Duncan

Why this skill is necessary

Process complexity is a significant driver of increasing process costs which is difficult to teach, slow to execute, and expensive to maintain.

Furthermore, governing compliance for these processes is difficult to establish and monitor, especially as regional variations push up against global standardization.

Hence, before starting on the journey for any standardization or digitization, GPOs need to have an in-depth process understanding.

What adidas achieved using this skill

adidas’s Challenge: Disconnected Systems

  • Disparate systems for processes across credit, collections, deductions, billing, and payments.
  • Multiple, disconnected systems led to:
    • Productivity loss in low-value manual coordination across teams
    • Broken customer experience in interfacing with different systems
    • Concerns about maintaining a single source of truth with SAP

adidas’s Epiphany on Digital Transformation

  • With in-depth understanding of their process, Tracie Duncan, Director for Credit was able to define their requirements from technology clearly
  • Defined the vision as “Digital Enablement with Integrated Receivables
  • These vision aimed any two core objectives:

Advantages

  • In order to move away from a “siloed” approach, the team laid out the following charter for successful technology deployment:
    • One vendor across credit-to-cash for a simplified IT landscape
    • Handle subsidiary operations through a single system
    • Enforce tight ERP integration to maintain a strong, single source-of- truth
    •  Leverage automation to eliminate low-value manual tasks across credit-to-cash processes
Chapter 03

Skill #2


Data Driven Decision Making
Cargill’s Transition to Lean and Simplified A/R

Gunther Smets Thumbnail

Why this skill is necessary

Before jumping into the next best technology available, it is essential for the GPOs to take a step back and analyze their processes in-depth.

Poor understanding might lead to poor decisions at high costs and negligible results.

Hence, only after comprehensive analysis and benchmarking, GPOs are informed enough to make accurate decisions.

What Cargill achieved using this skill

Cargill’s Challenge: Complex IT Landscape

  • Worked out of decentralized business units.
  • Tried to “lift + shift” to a centralized shared service model
  • Realized the lack of an integrated model that could support their multifaceted IT landscape consisting of:
    • 5 enterprises
    • 20 business groups
    • 28 JDE instances
    • 5 SAP instances
    • 90+ proxy CTC applications
    • 50+ ERPs
    • No centralized customer master data
  • Decided they needed a different approach.
  • Opted for “lift + shift + transform” strategy
  • Standardize processes post transformation

How Cargill leveraged data driven decision making

  • Select technology based on maturity gaps in the processes.
  • Three steps to find maturity gaps:

Data driven decision making

With this, Gunther Smets, OTC GPO for Cargill was able to make informed decisions and transform into a lean and simplified A/R

Chapter 04

Skill #3


Project Implementation Planning
Huntsman’s Deployment of 3 Modules in 2 Years Across 4 Regions

Molly Pryor Thumbnail

Why this skill is necessary

Transforming A/R processes for different BUs spread across different geographies is complicated. With the lack of proper planning and detailed roadmap for execution- it’s a nightmare!

Hence, GPOs need to lay strategic roadmaps for project implementation in order to:

  • Avoid any risk fallouts
  • Keep all stakeholders involved
  • Streamline implementation and deployment of the solutions

What Huntsman achieved using this skill

Huntsman’s Challenges

  • Multiple Disintegrated Systems 
    • Lack of Centralized Global A/R Management
    • Cumbersome Credit Reviews
    • Lack of Visibility and A/R Tracking
    • Semi-Automated System
  • Non-standardized, Unscalable A/R Processes
    • Time-consuming, Manual Processes
    • Lack of Integration
    • Internal Teams Disconnect
  • Unavailability of Real-time Data
    • Outdated Data
    • Lack of Visibility and Transparency
    • Limited Support for Critical Decisioning

Due to these challenges, it was really difficult for Huntsman to transform their A/R processes.

5 Step Process Methodology

  • Deployed solutions for credit management, collections and deduction
  • Global deployment for BUs across US, Asia, LATAM, Europe within 2 years using the following strategy:

5 Step Process Methodology

Improved their Order To Cash metrics as well as process visibility and transparency.

Chapter 05

Skill #4


Leadership and Communication
McCormick’s Streamlined Change Management

Inga Occorso

Why this skill is necessary

New process implementation based on unfamiliar technology such as RPA and AI undoubtedly results in kickback from most of the functional workers due to:

  • Lack of information
  • Insecurity around the job
  • Inability to understand the new method

Hence, GPOs must have robust communication and influential skills to smoothen change management and technology adoption.

What McCormick achieved using this skill

Here is how McCormick was able to address each and every single challenge posed during change management while implementing new solutions for cash application and deduction management:

Must have

Chapter 06

Skill #5


Long-Term Vision
How Danone Built Future-Ready A/R

 Michael petty john

Why this skill is necessary

In order to scale in the organic growth or M&A environment, it is essential to think beyond just customary benefits and focus more on value-additions including efficiency, customer satisfaction, and improved A/R health.

They need to think about the ‘bigger picture’ and drive global process standardization and continuous improvement for scalable and future-ready Order To Cash.

Hence, it is imperative for the GPOs to have a long-term vision and plan.

What Danone achieved using this skill

Danone’s Long-Term Vision:

  • Danone wanted a technology that can eliminate manual processes and tasks to:
    • Increase accuracy
    • Improve speed
    • Eliminate costs
  • Here is what they defined as the long-term vision for their Order To Cash:

A/R Best practices

  • Based on this vision, Danone defined the key solution requirements for their A/R processes

Solution Requirements for Cash Application:

  • Handle multiple remittance formats
  • Automatically identify and code deductions based on internal codes
  • Configure output based on specific requirements for different company codes
  • Easy to deploy across different business units

Solution Requirements for Deduction Management:

  • Automate collection of claims and POD backup documents from customer websites
  • Automate processing of trade deductions (85% of all deductions)
  • Track deduction case progress through the resolution lifecycle
  • Automate approval/denial correspondence with customer
Chapter 07

Summary


Yes. These are the 5 skills that helped Adidas, Cargill, Huntsman, McCormick, and Danone transform their Order to Cash operations for better.

Here is a quick overview of how 5 world-class GPOs prepared their Order To Cash in the age of AI:

  • In-depth process and business acumen from adidas
  • Data-driven decision making from Cargill
  • Project implementation planning from Huntsman
  • Change management from McCormick
  • Long-term vision from Danone

Following the footsteps of these pioneers can enable businesses to tackle some of their most common challenges specific to shared services and help them on their journey for an optimized Order To Cash transformation.

However, the very first step in any OTC transformation, the first step is assessing your current process.

Ready to get started? Click here for a complimentary As-Is Process Assessment.

Chapter 08

About HighRadius


HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company. The HighRadius™ Integrated Receivables platform optimizes cash flow through automation of receivables and payments processes across credit, collections, cash application, deductions, electronic billing and payment processing.

Powered by Rivana™ Artificial Intelligence Engine and Freeda™ Virtual Assistant for Credit-to-Cash, HighRadius Integrated Receivables enables teams to leverage machine learning for accurate decision making and future outcomes. The RadiusOne™ B2B payment network allows suppliers to digitally connect with buyers, closing the loop from supplier receivable processes to buyer payable processes.

HighRadius solutions have a proven track record of optimizing cash flow, reducing days sales outstanding (DSO) and bad debt, and increasing operational efficiency so that companies may achieve strong ROI in just a few months. To learn more, please visit www.highradius.com

HighRadius’ Integrated Receivables Platform

Integrated Receivables optimizes accounts receivable operations by combining all receivable and payment modules into a unified business process. The Integrated Receivables platform provides solutions for credit, collections, deductions, cash application, electronic billing, and payment processing – covering the entire gamut from credit-to-cash.

The HighRadius™ Integrated Receivables platform stands out by enabling every credit and A/R operation to execute real-time from a unified platform with an end goal of lower DSO, reduced bad-debt, and faster dispute resolution while improving efficiency and accuracy for cash application, billing, and payment processing.

HighRadius™ Integrated Receivables leverages Rivana™ Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes. The Integrated Receivables platform also enables suppliers to digitally connect with buyers via the radiusOne™ network, closing the loop from the supplier Accounts Receivable process to the buyer Accounts Payable process.

Chapter 01

Defining GPO’s Responsibilities


While the adoption of Global Process Owner is constantly on the rise, there is still a lot of mist around defining the core responsibilities of an Order-to-Cash (OTC) GPO.

According to the text analysis of 100+ job descriptions for OTC GPOs, here are some common expectations:

  • Establish and communicate a clear vision
  • Drive global deployment and adoption of the process, with regional and local requirements customization
  • Develop and translate strategy into operational goals, objectives, and process roadmaps
  • Identify necessary resources (people and capital) to support the implementation of these strategies.
  • Assess opportunities for continuous process improvement and expansion

PwC Report

GPO’s Dilemma: Inability to Leverage Technology

Order To Cash Executives today believe in the potential for technology. Here are the standard benefits expected from RPA and AI:

Productivity Savings

Moreover, according to another survey by KPMG, 62% of respondents from larger enterprises are already investing or are planning to invest in digital labor.

However, here comes the shocker. According to the data shared at the European Shared Services Leaders’ Summit:

Customer Experience Percentage

Surprised? Don’t be.

GPOs today are not ready to surf through the oceans of technology while keeping their A/R ship steady.

Here are 5 skills that helped Cargill, Adidas, Huntsman, Danone and McCormick rudder their Order To Cash in the right direction.

Recommendations


Blog

The Future of Global Business Services for…

Abstract

This infographic showcases the paradigm change that GBS organizations are going through. And…

4 min

Blog

Insights from 200+ A/R Leaders – Next…

Abstract

Admitted by 200+ global A/R leaders, these are the next steps you should…

4 min

Blog

What Role Does Automation Play in Periodic…

Abstract

Introduction Most mid-sized businesses take a reactive approach towards customer relationships, in the…

4 min

There’s no time like the present

Get a Demo of Integrated Receivables Platform for Your Business

Request a Demo

Request Demo Character Man

HighRadius Integrated Receivables Software Platform is the world’s only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway – covering the entire gamut of credit-to-cash.