Context
The client, a multinational semiconductor chip manufacturer attempt to focus on core competencies, was looking to outsource the Accounts Payable function to a vendor. The main outsourced activity was to process invoices coming from suppliers across the world in a timely manner. The average accuracy of activities prior to outsourcing the functions to MPG was reaching 4% below optimal levels.
Solutions
ManpowerGroup deployed an outcome-based solution with strict SLAs on deliverables
A solid account management structure was set up with strong governance procedures in place
A phased approach for service delivery:
– Phase 1 - Sep 2016: The client partially outsourced 2 AP functions: Invoice Processing and Recovery & Resolution process
– Phase 2 - Sep 2017: The client outsourced additional tasks in the 2 AP functions above as well as 2 additional functions: Invoice Administration and Payments
– Phase 3 - Sep 2018: Expansion of scope to include suppliers not only from APAC and EU but also from USA, Canada, & Israel
Results
From 2016 till 2019 ManpowerGroup achieved 16% of cost efficiencies and the solution was able not only to meet client SLAs but exceed them.
| 2017 | 2018 | 2019 | SLA |
TasksCompleteness | 100% | 100% | 100% | 100% |
TasksTimeliness | 100% | 100% | 100% | 100% |
TasksQuality | 99% | 99.9% | 99.9% | 98.5% |
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