Resources
- Home
- >
- Industry
- >
- Resources
- >
- Case Studies Select
Case Studies
Leading Aluminum Producer Leverages Finance and Administration Business Process Outsourcing
The Client
The client is the world's leading producer of primary aluminum, fabricated aluminum, and alumina. It is a multi-billion dollar company and is a champion in reporting financial results by publishing it very quickly after the closing date.
Business Need
Faced with significant pressure to maintain/grow the bottom-line (fluctuating profits over past few years posing a challenge for growth) there was a requirement to cut the cost drastically. Management has set aggressive target for time-bound cost containment.
Key Challenges
Due to the aggressive target for cost reduction, there was a need to complete the transition within a short time. The volume of data was considerable. There were around 1.8 million AP invoices per annum with a vendor base of around 30,000. The AR invoices volume was close to 85,000. This meant setting of a large team and training them in a very short time.
Infosys' Solution
For the Accounts Payable services were provided in the following area
- Invoice processing
- PO Based invoices
- Non PO invoices
- Emergency invoices
- Recurring payments
- Post payment activities
- Void checks
- Adjustments
- Debit/Credit memos
- Vendor reconciliation/ inquiries
- Generating 1099 reports
- MIS activities on AP
For the Accounts Receivables, following areas were covered
- Receipts processing
- Applying receipts to invoices
- Follow up on outstanding items (missing information etc)
- Report on unapplied receipts
- Adjustments
- Write offs - small amounts
- Debit/Credit memos
- Customer reconciliation/inquiries
- MIS on receivables
- Ageing report on outstanding etc.
Multiple shifts solution was recommended to reduce the cycle time.
Business Value
Outsourcing the F&A activities resulted in immediate cost benefit up to a whopping 40-50%. This was vital to keep the costs down and thereby increasing the bottom-line of the company. With the reduction in cost, the process performance was also improved. The productivity improvement was 5% p.a. and a two-fold increase in processing cycle time by employing multiple work shifts. Better stakeholder service levels were achieved through manpower quality arbitrage.
Media Mentions
Fortune ranks Infosys 10 among Top Companies for Leaders 2007
More
Press Releases
Infosys reorganizes to leverage growing business opportunities in a Flat World More
In the News
Sourcing at your fingertips:Global Sourcing Essentials
Everything you wanted to know about global sourcing, in five easy parts.
Download your copy
