Invoice deductions at PepsiCo
Robin den Boer, Director of Process Engineering at Capgemini Invent, walked the Celosphere audience through a similar story of data-driven process revitalization at PepsiCo. Rather than risk management, this time it was invoice deductions.
More than 100,000 claims per year required manual intervention rather than being automatically matched. Despite PepsiCo having a 40-strong global deductions team, this cost a lot of time. When claims weren’t resolved within agreed timeframes, deductions were written off. This cost a lot of money.
Den Boer explained that at PepsiCo the main reasons for deductions are promotions, baseline agreements, and pricing fluctuations. For each customer, these variations need to be captured and approved at the system level in order to be applied correctly. This responsibility doesn’t lie with the deductions team, but further upstream.
By using Celonis, Den Boer and his team discovered the sales team was not always inputting contract details into the system properly – nor ever approving them. This was causing valid deduction claims to require others to go into the system and make approvals manually.
Dashboards for deductions
Capgemini addressed this by providing dashboards to the sales teams, flagging the critical contract information in need of entry or approval. With more of the correct deduction information in the system, the number of interventions needing manual intervention plummeted.
To help the deductions team more directly, Capgemini also sought solutions downstream. Firstly by checking all contracts in the system were correct and up-to-date – minimizing unnecessary deductions. Secondly, Capgemini used Celonis to provide dashboards that enable the prioritization of high-value deductions. With this, PepsiCo could allocate deduction team resources based on generating the biggest business benefits.
“With this upstream and downstream approach, we managed to make the deduction process more efficient”, concluded Den Boer.
There were few more impressive examples of practical value creation showcased at Celosphere 2023 than in the partnership between Capgemini and PepsiCo. Their collaboration, powered by Celonis for Consulting, demonstrates the tangible benefits of using process mining technology to accelerate time-to-value of customer engagement.