Shared Services Operations – The Journey Of Scale-up || Transform || Sustain By K V Seshaiah Senior Director, Finance Dr Reddy's Laboratories

1. SHARED SERVICES OPERATIONS
the journey of
SCALE-UP || TRANSFORM || SUSTAIN
Nov. 2017
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2. Dr. Reddy’s Laboratories Ltd.
What do these mean?
SCALE-UP
TRANSFORM
SUSTAIN
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Have more processes been added?
Have more volumes been absorbed?
Have more geographies been added?
Have you been able to un-bolt a process from SSC?
Are we able to do the above with ease?
Are we able to deliver the services at declining costs?
Are we able to continue to enhance customer satisfaction?
Are we able to engage the SSC staff to their potential?
A
B
C Are we able to deliver, period after period;
…….Customer delight at least cost?
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3. Dr. Reddy’s Laboratories Ltd.
Scale-up
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4. Dr. Reddy’s Laboratories Ltd.
The journey – Focus on scale & Automation
Phase - 1
2004 - 2007
Set-up in-House
SSC & Stabilize
Scale-up &
Expansion
Creation of
Hybrid Model
Continuous
Transformation
& Automation
2004
Procure to Pay (P 2 P)
2005
• Order to Cash (O T C)
• Employee Services (E S)
• Travel & Hospitality (T&H)
2009
• Central SCM
2010
• Record to Report (R2R)
• Treasury back office
• GRC – SOD Management
2011
• Mail room operations
• Document management
2012
• Part of F&A Process
outsourced
2013
• Doc. Mgmt. outsourced
2015
• Global IT outsourcing
Phase - 2
2008 - 2011
Phase - 3
2012 - 2015
Phase-4
2016 -
2016 -
• Digital P2P
• Extended auto work flows
• Mobile Apps
• HR Services added
• RPA & Chat-bots
…………the journey is on
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5. Dr. Reddy’s Laboratories Ltd.
SSC
(Non-IT)
GBS, at the centre of Vendors, Customers, Employees and OperationsToday - at the centre of Customers, Vendors, Regulators, Operations and Employees
EST
P2P
OTC
FIELD
T&H
HR
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6. Dr. Reddy’s Laboratories Ltd.
EST Services
Payroll, claims, settlements, Compliance
• ~xxx Employees’ Payroll
• ~xxx Investment proofs p.a.
• Allied activities like F&F, Advances etc.
SSC
(Non-IT)
GBS, at the centre of Vendors, Customers, Employees and Operations
Travel & Hospitality
• ~ xxx travel booking p.a.
• ~xxx Hotel bookings p.a.
• ~xxx Cabs bookings p.a.
• xxx Guest Houses
R2R Process
Month/Quarter Closing
• Daily Reconciliation of bank A/c’s
• Analytical reports and Schedules
• Vendor & Customer Recons.
• TBO Operations
HR Services
India HR Back-end operations
• ~xxx New joining’s and Separations p.a.
• Background verifications
• Data management
P2P Process
Invoice receipt to payment
• ~xxx invoices processed p.a.
• >xxx communications
• Payments accounting
O2C Process
Order entry to receipt of Cash
• ~xxx Export consignments p.a.
• Collection entries
• ~xxx credit notes processed p.a.
Marketing
Marketing expense processing
• ~xxx claims processing
• Other commercial documentation
Today - at the centre of Customers, Vendors, Regulators, Operations and Employees
20%
40%
65%50%
40%
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7. Dr. Reddy’s Laboratories Ltd.
Transformational Initiatives – some examples
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8. Dr. Reddy’s Laboratories Ltd.
Digital P2P - Benefits Realization
Paid on Time
95%
Key Performance Metrics against
best in class and Industry
median*
Best in Class
First Pass Yield
87%
Invoice Receipt
Cycle time (incl.
hard copies)
2D
95%
90%
Pharma Co. MedianPost Digital
20D
78%
71%
15D
6% up
24% up
15D down
84%
30D
71%
Pre Digital
*These metrics are for the invoices received through the portal. 60% of the total
invoices are received through the Portal. Of this 85% are Digitally Signed Invoice
• Updation of Inv.
Status at each stage
• Payment details
• Priority as per Due
date
• System driven SLAs
and Tracking.
• Process through Soft
Copy of Invoice.
• System Deviation
auto closure
• No Manual Data
entry
• Online Validation
with SAP
OCR
Technology
with SAP
Integration
Automatic
closure of
system
deviations
End to End
Visibility in
Portal
SLAs &
Escalation as
per Best
Practice
Transformational initiatives – Digital P2P
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9. Dr. Reddy’s Laboratories Ltd.
Transformational Initiatives – Automated Work-flows
• All F&A process - document and approvals
• P2P, OTC, R2R, Payroll Services
• HR Services
• Agreement reviews
• Foreign Payments – documents and approvals
• Payment requests and related documents,
• Taxation Team’s inputs,
• CA Certificate,
• Employees’ final settlements
• No dues statements
• Interface with payroll team
• Interface with Banks
• Card swipes - CTA Card / Corporate cards / P-cards
• Document Arrival Notices (DAN)
• Remittance advices
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10. Dr. Reddy’s Laboratories Ltd.
Transformational Initiatives – Mobile Apps
• Pay Slips
• Leave request
• Travel request
• PO approval
• Service Entry approval
• Shopping cart approval
• Trip request approval
• Non-travel exp. approval
• Travel exp. statement approval
• Leave Approval
• Cab requests approval
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11. Dr. Reddy’s Laboratories Ltd.
Other Transformational Initiatives – in progress
• R P A
• Invoice processing
• Collection accounting
• Credit Notes accounting
• Reconciliations
• Trip Request & Booking
• Request with profiles integrated with HR Masters
• Self on lone booking
• Estimate Trip Cost during Trip Creation / Approval
• Budget Checks during Request approval stage
• Booking of Travel ticket in a single click
• Expenses Management
• Credit Card feeds auto segregation (for ease of settlement)
• Per diem – City specific
• GST captured during settlement of expenses
• Budget vs Actual tracking
• Full Trip cost including BTC (reverse flow of info from SAP)
• Digital mode of Submission of Travel supporting
• Mobile App functionality end to end
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12. Dr. Reddy’s Laboratories Ltd.
Other Transformational Initiatives – in progress
• Chat-bots
• Policy clarifications – eligibility etc.
• Status of Trip request / advances / settlements
• Other clarifications
• Further enhancement of auto-work flows
• Income Tax declaration
• Tax Simplifier Statement
• Salary / LTA Advance
• HR Services
• Digital on-boarding
• Digital P-files
• More on Mobile
• Employee reimbursement claims
• Revenue expenses submission for 3rd parties
• Cab requests for local travel
• IT declarations / tax statements / advances requests
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13. Dr. Reddy’s Laboratories Ltd.
The results & Sustenance
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14. Dr. Reddy’s Laboratories Ltd.
The results
Transaction
cost
DoT &
Accuracy
Rs.
XX
(2012)
Rs.
xx
(2017)
Increased Volumes…
• P2P – ~20% increase
• O2C - ~40% increase
• EST – ~40% increase
• Deviations down by ~70%
(xxx in 2012 to xxx in
2017)
• F&F TAT reduced by ~40%
(xxx days in 2015 to xxx
days in 2017)
• India marketing- pending
claims brought down from
>xxx days to <xxx days
• Work flow tools
• O C R
• Digital Invoices
• Vendor dedicated portal
• Self booking Tools
DoT 97.5%
Acc 99.1%
(2012)
DoT 99%
Acc >99.5%
(2017)
Technology
Road shows
FAQ’s
Help Desks
Escalation
points
OP’s calls
Knowledge
sharing
Feed Back
Plant visits
• P2P: 83%
• O2C: 100%
• EST: 89%
• R2R: 81%
• Over all: 88%
• Good to Excellent
12%
38%
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15. Dr. Reddy’s Laboratories Ltd.
Our focus will continue on
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SCALE-UP
 Work on the specific geographies to be brought under GBS-SSC
 Few more processes to be brought under the function of SSC
 Consolidate a few areas and bring them under Global C.o.E’s
 Add more knowledge-based high end processes
TRANSFORMATION
 Technology focus to be continued – RPA, Chat-bots, Data Analytics
 Culture changes to be brought – Common understanding of the process
requirements, reduction of exceptions / fast track transactions
 Focus on employee engagement levels – training & development
SUSTENANCE
 Keep measuring the vitals – the cost and the VOC and take course corrections
 Transform from a cost centre to a value centre

16. Dr. Reddy’s Laboratories Ltd.
GBS, at the centre of Vendors, Customers, Employees and OperationsThe next THREE years……. “Scale-up” and “Delight” @ Least Cost!
Automation
Chatbots
RPA
Virtual office
Simplification
Mobile apps
Analytics on the go
Business intelligence
Cognitive Analytics Machine learning
Compliance
One experience
Digital labour
De-skilling
Low-cost
AI/ML
Big data
Cloud computing
Faster execution
MORE PROCESSES ENGAGED PEOPLE NEW TECHNOLOGIES
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17. Dr. Reddy’s Laboratories Ltd.
Thank you
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