How Hidden Business Process Inefficiencies Could Affect Your Supply Chain

Janine Kanters / January 19, 2017

While most supply chain professionals probably feel like they have a good grip on their business processes, the reality is often much different. Take the purchase-to-pay process for example. It’s entirely possible – and even likely – that the majority of the time this process is not executed as it was designed. What if purchase orders with the wrong pricing are being received by vendors 20 percent of the time? That’s a big issue, and you wouldn’t have any idea of the scope and impact that it was having unless you knew to look for it.

This is the type of inefficiency that Celonis customers are able to identify quickly and easily by using process mining. In this example, it could easily take twenty-minutes to correct each purchase order that was sent with incorrect information, and in a large organization, something like this could be happening tens-of-thousands of times. If you do the math, it could all add up to years worth of man-hours to get this recurring issue straightened out.

Regardless of an organizations size, failures to find and eliminate inefficiencies like this can result in a loss of 10 to 20 percent on margins. With multiple departments, individuals and moving parts, business process oversights occur daily at most organizations, often going undetected for months. Inefficiencies plague departments across the organization, and can include slow throughput, cash discount losses, low efficiency, slow customer response time and bottlenecks in team performance.

These disruptions are occurring not only across departments, but across industries. Each error amounts to wasted time, energy and money. Likely, these oversights occur because organizations are in the dark. Many organizations have no visibility into where errors are occurring in the workflow – the problem is that companies either have no idea where to look or worse yet, have no idea they should even be looking at all. There are a vast amount of places where things can go wrong, and for the most part, companies today are operating blindly as to where those places are.

Celonis Process Mining takes off the blinders, giving organizations unbiased visibility into their business processes so they can improve margins, business agility, and customer service while reducing operational costs. It provides each department of an organization with analytical insights to help them make informed decisions that optimize their business.

https://youtu.be/0nDS4NjEZqg

When it comes to improving efficiencies in the supply chain, Celonis customers have improved on-time delivery by 18 percent, increased automation by 30 percent and shortened throughput time by 22 percent, and we can help your organization do the same. Contact us at info@celonis.com to learn how quickly we can make a difference.

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