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How Hidden Business Process Inefficiencies Could Affect Your Supply Chain

By Christoph Grossbaier
2 min read

Although most supply chain professionals probably feel they have a good grip on their business processes, the reality is often much different. Even the best-documented processes have variations, intended or not. But how do you know when these have proliferated beyond the view of the process owners and taken on a life of their own?

The high cost of process inefficiencies

Take the purchase-to-pay process for example. You have procedures and standards in place to maintain accuracy and consistency. But what if it turned out that vendors were receiving purchase orders with the wrong pricing 20% of the time? Thatโ€™s a big issue, and you wouldnโ€™t have any idea of the scope and impact of it unless you knew to look for it.

In the above example, it could easily take 20 minutes to correct each purchase order, and in a large organization something like this could be happening tens of thousands of times. When you do the math, it adds up to yearsโ€™ worth of man-hours to resolve this single recurring issue.

Regardless of an organizationโ€™s size, failures to find and eliminate inefficiencies can result in a 10-20% loss on margins. With multiple moving parts and players, business process oversights occur daily at most organizations. Worse, these issues often go undetected for some time, leading to slow throughput, cash discount losses, low efficiency, slow customer response time and bottlenecks.

How process mining can help

These types of process disruptions occur across departments and industries. Likely, companies have no visibility into whatโ€™s happening, let alone whyโ€”or where they should be looking for additional problems. Yet these are the type of inefficiencies that are quickly and easily identified using process mining.

Celonis Process Mining takes advantage of your companyโ€™s existing data to take off the blinders, creating a real-time visualization of how well your processes actually work. This unbiased visibility helps you improve your margins, business agility, and customer service while reducing operational costs.

When it comes to improving efficiencies in the supply chain, Celonis has enabled customers to improve on-time delivery by 18%, increase automation by 30% and shorten throughput times by 22%.

Best of all, the technology can be applied to any process in your company. That means everyone is armed with data-driven insights to help make the kind of informed decisions that can transform the way your business operates.

See for yourself exactly what process mining can do, and how Celonis can help your business achieve the same level of success.

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