INDUSTRY: Chemical Manufacturing
How Accelirate's Process Mining Solution Enables Leading
Chemical Manufacturing Company Identify $20M in Working Capital Leaks
$20M
Potential Working Capital
Impact Identified
12-Month
Pipeline for Automation
Opportunities Created
Client Overview
The client is a leading chemical manufacturing company committed to using technology to promote innovative and sustainable agricultural practices. They embarked on a digital transformation to improve procurement operations and enhance working capital management.
Key Takeaways
- Process Mining is a powerful tool for identifying and addressing discrepancies and working capital leaks.
- Automation significantly improves procurement operations, accuracy and processing time.
- Process mining and automation help the client optimize their working capital management with data-driven insights.
The chemical manufacturing company, a pioneer in agricultural solutions worldwide, is dedicated to using technology to enhance their working capital and operations. Recognizing the potential of automation in optimizing finance operations and streamlining complex processes, the company’s procurement team engaged Accelirate to conduct a project to identify opportunities to improve working capital and identify automation opportunities for efficiencies within the Procurement division of the company.
Accelirate, a global automation service provider, proposed implementing Process Mining to the client’s operational procedures using UiPath services. The client was facing challenges with improper payment terms that were leaking operating capital. The company was also looking to quantify discrepancies and inefficiencies within their internal processes leading to this leakage.
Addressing Financial Leaks and Procurement Challenges with Process Mining
The client faced significant challenges with improper payment terms that were causing leaks in their operating capital. The complexity of their processes made it difficult to maintain transaction accuracy, impacting their supply chain, supplier relationships, and overall product delivery efficiency. To tackle these issues and maximize their working capital, the client needed a robust solution to enhance their procurement operations and ensure financial stability.
01- Process Mining Implementation
Utilized UiPath Process Mining to identify capital leaks related to discrepancies between payment terms of POs, payment terms in contracts, and invoices paid early.
02 - Data Collection and Integration
Integrated transaction data, purchase orders, and contracts to pinpoint discrepancies in payment terms, helping to understand whether the leaks were due to errors or controlled cases.
03 - Process Discovery
Conducted comprehensive process discovery across all procurement functions to identify opportunities for working capital optimization, improve transaction times, and reduce errors.
04 - Departmental Interviews
Held interviews with department and functional managers to gain insights into key transactions and pain points, ensuring a thorough understanding of the issues and potential solutions.
05 - Process Governance Improvements
Proposed enhancements to the approval, tracking, and implementation of changes in payment terms to prevent future discrepancies and ensure better control over procurement processes.
What Makes the Implemented Solution Different?
Let’s look at the unique aspect of the solution that made all the difference for the client and their existing processes:
01- Comprehensive Process Mapping
Accelirate proposed implementing Process Discovery with UiPath Process Mining to create a detailed process map of the Procurement process using data extracted from SAP. This visualization helped identify critical areas for improvement, providing a clear roadmap for optimization.
02 - Data-Driven Insights
Based on data and input from Procurement SMEs, discrepancies in payment terms between purchase orders and contractual agreements were identified, offering actionable insights to prevent financial leakage.
03 - Enhanced Process Governance
The proposed improvements to the approval, tracking, and implementation of changes in payment terms ensured better control and compliance within the procurement process.
04 - Solution-Focuses Approach
Conducting interviews with department/functional managers to understand key transactions and pain points enabled Accelirate’s managed platform team to focus on discovering solution opportunities that can improve current processes and reduce leakage.
Transforming Working Capital Management with Tailored Automation Strategy
The implementation of process mining by Accelirate provided the client with actionable outcomes and insights, leading to significant improvements in their working capital management and overall operational efficiency. Let’s take a closer look at the results achieved:
01 - Financial Impact
The implemented solution helped identify $20M of potential working capital impact due to discrepancies in payment terms, highlighting significant opportunities for financial optimization.
02 - Automation Opportunities
The project established a 12-month pipeline for further automation opportunities, aimed at improving accuracy and processing time in procurement operations.
03 - Enhanced Governance
The improvements in process governance led to better control over procurement processes, enhancing the approval, tracking, and implementation of changes in payment terms.
Maximize Operational Efficiency and ROI with Process Mining Today!
In this case study, Accelirate showcased the transformative impact of process mining on working capital management optimization for a leading chemical manufacturing company. By implementing a robust process mining solution, the client not only identified significant financial impacts but also streamlined their procurement processes and paved the way for strategic automation. This approach isn’t just about improving efficiency; it’s about enhancing financial operations to ensure sustainable growth and resilience in a competitive landscape. Partnering with a trusted automation service provider like Accelirate can empower your organization to achieve similar success in optimizing workflows and enhancing financial management. Contact us today to explore the possibilities!
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