Order-To-Cash Transformation: End-to-End Process … · All Other Celestica locations, with local...

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May 10-12, 2017

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Copyright © Celestica Inc. May 2017

5/4/2017

Order-To-Cash Transformation:

End-to-End Process Managed in

One Business Stream – So What?

Les Smeyers

Director of Finance

Global Business Services

Order-to-Cash

Celestica, Inc.


May 10-12, 2017



5/4/2017

Who is Celestica ?


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1994

1996

1998

• Wholly owned subsidiary

of IBM Canada

• Headquartered in Toronto,

Canada

• Two locations in two

countries

• Purchased from

IBM by investor

group led by Onex

• Becomes a publicly traded

company (one of the largest

IPOs in Canadian history)

Our Inception


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A Global Leader In innovative end-to-end supply chain solutions

$6.0 billion in revenue

24 locations in 12 countries

25,000 Employees worldwide

• Focused on serving the world’s leading technology companies

• Tailoring customer-centric solutions for the markets we serve

• Operating a global network of sites with specialized Centers of Excellence

• One of the strongest balance sheets in our industry


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Global Business Services

(GBS) at Celestica


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GBS Service Delivery Model

HR,

Comms,

Legal &

Contracts

SCM Finance IT Ops Diversified

Markets

C&E and

Managed

Services

• Strategy

• Policy

• Program Design

• Business Support

• Enablement

– Transactions Analytics

– Customer Service and

Solutions

– Global Process Owners

– Service Management

Framework

Opportunity to Cash

Source to Pay

Record to Reporting and Insight

Engage to Run Business Solutions

Acquire to Retire

GB

S

Demand to Delivery


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Integration

Point PROCESS TEAMS

EXTERNAL PARTNERS

GBS Enabling

Technology (Microsoft Dynamics)

• Chat with knowledge experts

• Single number access • SMS call back • Knowledge experts

• Single point of access • Intuitive self service • Automated workflow • Dashboard

SOURCE TO PAY

ACQUIRE TO RETIRE

ENGAGE TO RUN

BUSINESS SOLUTIONS

OPPORTUNITY TO CASH

RECORD TO REPORTING & INSIGHT

DEMAND TO

DELIVERY

Click

Call

Chat

• Process based

service centric

organization

• 4 delivery channels

for all stakeholders

• One globally,

integrated platform

• Enhanced &

consistent user

experience

• Easy access &

consistent, simple

user experience

• Emphasizing speed to

outcome and being

value-added Access services whenever, wherever, however

Our GBS Future State


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GBS Delivery Network Map

Laem Chabang Thailand

Suzhou China

Song Shan Lake China

Monterrey Mexico

Toronto ON

Oradea Romania

Singapore

Penang Malaysia

Kulim Malaysia

Hong Kong China

GBS HUBS

All Other Celestica locations, with local GBS support

Stand Alone HUB

E2R

O2C

S2P

A2R

S2P

E2R

O2C

S2P

A2R

E2R

O2C

R2R&I

S2P

E2R

O2C

R2R&I

S2P

E2R

S2P

A2R

E2R

O2C

S2P

A2R

E2R

O2C

A2R

E2R

S2P

A2R

E2R

S2P

A2R

E2R

S2P

Portland

Mississauga

Fremont

San Jose

Leixlip

Galway

Valencia

Miyagi

Shanghai

Johor


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The Integration Journey


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Opportunity to Cash

Consists of two sub-process

• Opportunity to Contract key services

‒ Opportunity Assessment

‒ Proposal Development

‒ Proposal Approvals and Submission

• Order to Cash key services

‒ Manage Purchase Order intake process

‒ Creation of Sales

‒ Invoice customer

‒ Manage Accounts Receivable

‒ Manage Customer Credit Assessments


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Past Present Future

Challenges = Opportunities

• Decentralized tasks

• Different functional group

ownership

• Non standard processes

• Non standard metrics and

service measures

• Conflicting governance

• Centralized delivery centers

• Defined and understood

ownership

• Standard processes

• Standard metrics and service

measures

• Common governance

May 2017 2018, 2019… Early 2015

Why should a task be transferred? When can a task be transferred?


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Establish Governance Protocol

• Service Management Framework

‒ Governance Model

‒ Performance Framework

‒ Voice of the Stakeholder

• Order-to-Cash Framework


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Governance

Model

GBS

Service

Management

Framework

Performance

Framework

Voice of the

Stakeholder

1

2

3

GBS Governance Protocol


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How GBS partners with stakeholders and sets expectations with

respect to accountability, decision making, and issue escalation

Governance

Model

GBS

Service Management

Framework

Define Expectations and

Accountabilities

Issue Escalation

Decision Making

1


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Clearly defined services and measurement system:

Performance

Framework GBS

Service Management

Framework

2

Guide to Operations o GBS Vision and Objectives

o General Services

o Terms of Agreement

Service Catalogues • Service Definitions

• SLAs / OLAs

• Additional Process Area Info


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GBS clients and stakeholders feedback

Voice of the

Stakeholder

GBS

Service Management

Framework

3

o Quantitative input from metrics and surveys

o Qualitative input from anecdotes


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• Implemented over 75 continuous

improvement actions over the last

24 months

• No ‘BIG BANG’ events

• Focus on benefits to the clients;

improved efficiency for Order-to-

Cash


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#1 of the 75 … Expansion of Customer Late Payment Fee Analysis

• Background

‒ Analysis conducted for only one region

‒ Team performing the analysis did not have the appropriate insight

‒ Analysis conducted on all customers

• Solution

‒ Move the analytics to Order-to-Cash (we have the insight)

‒ Re-engineer process

‒ Consolidate analytics and communicate quarterly

• Benefit

‒ Developed a solution that meets client’s needs

‒ Expanded and improved an already existing solution


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5/4/2017

• Background

‒ Analysis conducted for only one region

‒ Analysis did not cover all customers

‒ Analysis did not capture a customer which was multi-regional

• Solution

‒ Re-engineer process to capture all customers globally

‒ Consolidate analytics and communicate quarterly

• Benefit

‒ Developed a solution that meets client's needs

‒ Expanded and improved an already existing solution

‒ Supports FCF analytics; customer terms vs vendor terms

#2 of the 75 … Expansion of Customer Average Days Report


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• Background

‒ Very manual process; Excel-based

‒ Consumed many hours, spread across many resources

‒ Regional forecasts required consolidation into a global forecast

• Solution

‒ Developed an input template that mirrors the current methodology

‒ Integrated template with data warehouse solution

‒ Assumption methodology can be changed as business changes

• Benefit

‒ Forecast can be completed in minutes vs hours

‒ Reduced manual efforts; reduced resources involved

‒ Both regional and global forecast produced simultaneously

#3 of the 75 … Automation of Collection Forecasting


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What’s Next …

• Continue to look for ways to automate

‒ Reduce manual touch points

• Change management

‒ Drive accountability and ownership

• Health and Insight – data improvement

• Meaningful Continuous Improvements

• New services offerings


May 10-12, 2017



5/4/2017

Questions ?

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