Case study: How a Global Business Services center became the transformation engine for a multinational conglomerate

A global farm-to-fork conglomerate with operations in multiple geographies was looking to optimize its operating model by redefining its business processes and setting up a global business services (GBS) network.  

With diverse enterprises and inorganic growth, its processes were decentralized and on disparate systems resulting in a multiplicity of process, policies and control leading to high cost of operations. In order to address these improvement opportunities, the client embarked on a journey to set up a network of digital global and regional business service centers to bring consistency in the ways of working and harmonize core business processes.

EY was engaged to help the client establish its global business services center in Bengaluru and transform its operating model to consolidate, streamline and transform their processes. 

EY conducted a detailed analysis to understand the existing capabilities of the organization, its processes and partnered with several key client stakeholders to co-develop the long-term vision.

• Process transitions: We helped the client setup a multi-year transition program. We co-developed a tailored transition approach and playbook, which has helped in supporting the multi-sourced, multi-functional and multi-regional programs. Our change and program management practices ensured smooth and successful set-up of the GBS operating model, bringing large-scale consistency in processes and laid the foundation for digitalization and transformation. Primary functions involved in process transitions were finance, HR, strategic sourcing and procurement, IT, trade execution and transportation and logistics.
• New services and centers of excellence (CoE) setup: We supported the client in conducting feasibility assessment of new services (e.g., Master Data Management, e-Auctions) and CoEs (e.g., intercompany, RPA) in GBS, designing future-state operating model, ways of working and determining the placement of services. 
• Process transformation and digitalization: Our process expertise and outside-in perspective on leading industry practices enabled the client to identify and implement improvement initiatives to realize value across processes through cost avoidance, cost reduction and working capital optimization measures. We also led several metric improvement initiatives, particularly in the finance and HR functions, to ensure faster turn-around times, reduced error rates, better efficiency and improved quality. We helped the client adopt a digital roadmap and program managed deployment of key transformational solutions such as blackline (book closing and reconciliation tool), TRIRIGA (IFRS 16 - Lease accounting tool) and RPA (robotics process automation). 

EY enabled the client to drive functional and global integration in line with the vision of becoming more integrated operating company. In a span of three years, EY supported in transitioning 1,500+ employees across six different functions in five enterprises, across four geographies.

The estimated benefit to client was approximately a 25% reduction in operating costs.

Additional benefits:

• Empowered the client with a robust Global Capability Center operating model to leverage further economies of scale, drive continuous improvement, automation and digital initiatives.
• Helped unlock additional value in terms of more predictable outcomes, improved metrics and performance in terms of cost. For e.g., in North America, the timeliness of transaction processing improved by 15% and the error rate reduced by 18%.
• Improved clarity and visibility of enterprise-wide process and policies leading to greater organizational agility and operational excellence.