Shared Services - Retail Domain & Beyond By Anurup Pruthi Managing Director NuFuture Haribhakti Business Services

1. @ 2012 – Proprietary and Confidential Information of nhbs

2. @ 2012 – Proprietary and Confidential Information of nhbs
Shared Services – Retail Domain & Beyond
‘Shared Services - A Strategic Enabler to Business’ - 2nd National Shared Services Conclave
- AIMA & DMA
21-Sep-2012

3. @ 2012 – Proprietary and Confidential Information of nhbs
NEED FOR SHARED SERVICES CENTER (SSC)
Shared
Services
Center
Process
simplification &
standardization
Leveraging
technology
Developing
economies of
scale
Increase
productivity &
excellence
Strengthen
Controls
Reduce Costs
Enable faster
business
growth

4. @ 2012 – Proprietary and Confidential Information of nhbs
SSC: MANAGING DIVERSITY, SCALE AND COMPLEXITY
1200+ Points of
Sale
Total Client
revenues over
11,000 Cr
7+ Business
Models
10 Lines of
Business
3.5+ mn
documents
85+ Cities
50+ Central and
Local Supply
Chains
FY05  FY11
6X revenue
growth
30000+ vendors
25+ formats
BUSINESS
FORMATS

5. @ 2012 – Proprietary and Confidential Information of nhbs
Our current scope of services
Finance and Accounts
Inventory Audit Services
Fixed Asset Services Technology Services
Master Data Management Interior Solutions

6. @ 2012 – Proprietary and Confidential Information of nhbs
SSC: 3-phase approach
Setup Shared Services Center
• Focus areas being:
• Consolidation and Centralisation
• Putting in place processes and
controls
• Governance, review and reporting
mechanisms
• Industry standard processing
practices
• Build sustainable business model
and ramp up to cover all FG
Businesses
1 2 3Phases
Evolve into independent Business
(nhbs)
• Focus areas being:
• Go-to-market with end-to-end
services portfolio
• Focused on IT-driven Innovation
• Best in class Service Delivery
methodology and processes
• Multi-fold increase in productivity,
efficiency and effectiveness
• Develop multi-ERP processing
capabilities, move to higher value
services
Expansion in India Market

7. @ 2012 – Proprietary and Confidential Information of nhbs
About F&A Shared Services
Center

8. @ 2012 – Proprietary and Confidential Information of nhbs
Documentation & migration
planning
Gujarat
Lift & Drop
Transition
other zones for PRIL Consolidation
Sep’08 to Nov’0820th Aug’ 08 Dec’08 to Mar’09 May’ 09
Quality
Improvement
Reporting
formats
Workflow
tool with
Decentralized
Scanning
Improvements
Jun’ 09 to Sep’ 09 Sep’ 09
Critical milestones
Automation /
Process
Improvements
Sep’11 –
Sep’12
F&A SSC JOURNEY
FVRL
De-merger
Jan’ 10
SAP
Workflow
Integration
Aug ‘10
Scanning
Centralization
Jul11
Transformation
Oct’12
onwards

9. @ 2012 – Proprietary and Confidential Information of nhbs
Before
transition
(2008)
Post
transition
(2008)
Today
(2012)
550Headcount
No of stores
PO
invoice volume
Non PO
invoice volume
380
300
132000
16800
300
760
210000
26000
Net reduction in
Transaction cost by
40% since transition
BENEFITS STATISTICAL HIGHLIGHTS

10. @ 2012 – Proprietary and Confidential Information of nhbs
Operates as an extension of CFO’s office
Highly resourceful and flexible with continuous innovation
Awarded Best Shared Service Center by AIMA in 2011
Offers deep domain experience and expertise in India compliance and
complexities
F&A at nhbs:

11. @ 2012 – Proprietary and Confidential Information of nhbs
About F&A SSC @ nhbs
nuFuture Haribhakti Business Services is a business
services company spawned from captive companies
of two visionary promoters (Kishore Biyani &
Shailesh Haribhakti).
o Proof of concept established in managing size,
scale & complexity
o Infrastructure, human capital & technology in place
o Consistently delivered unmatched value & reach
o Operates as an extension of CFO’s office
o Deep Domain experience & expertise in India
compliance & complexities
o With its proven F&A domain capabilities, nhbs
provides F&A services with a combined client
revenue of over Rs. 10,000 crores
OUR DIFFERENTIATORS
Unique Services Portfolio1
Customer Centricity3
End to end Engagement Model4
India Domain Depth5
Service Excellence2
Awarded ‘Best
Shared
Services
Center’ by AIMA
in 2011

12. @ 2012 – Proprietary and Confidential Information of nhbs
STATE-OF-ART DELIVERY CENTER
Location - Ahmedabad, Gujarat
Area - 32,000 sq. ft.
Capacity - 500 FTE and scalable
Connectivity - 15 MPBS lease line
Location Advantages
 Tier 2 city advantage
 High growth potential
 Easy access from western and central part of the country
 Centrally located facility within the city
 Easy availability of strong Finance knowledge resources
 Facility includes cafeteria, gymnasium, library and recreation room
 Investment in large facilities to bring Economies of Scale
 Alliances with technology & telecom partners guarantees 99.98% up-time

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PROCESS DEPTH
FP&A
Analytics
Financial Reporting
MIS
Vendor Reco Fixed Assets
Expense Provisioning Tax Process
Year end closures Group Co. ac
Invoice Processing - PO Payroll Administration
Petty Cash
Invoice Processing – Non-PO Procurement
Account Receivables Travel & Expense
Rent & Lease Accounting Statutory Payment ac
Why
What
Diverse Industry Experience Domain Expertise
How

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Handling 1200+ point of sales across 85+ cities
3.5 million documents being processed for 30000+ vendors
Servicing 50+ Central and local supply chains
40% reduction in transaction cost due to automation and optimization of
processes
Deep ERP knowledge to drive efficiencies through process redesigns

15. @ 2012 – Proprietary and Confidential Information of nhbs
Buy to Pay
Documents handled 3.5 million docs
PO Based processing 2.5 million docs
Non PO based processing 280k docs
Queries handled 72k
Value of documents processed Rs 10,000 Cr
Payments processed Rs 4000 Cr
Total vendors handled 13,000
Contracts handled 3000
Order to Cash
No of sales locations handled 760
Credit card reconciliation value Rs 4800 Cr
Banks handled 104
Record to Report
Vendors reconciliation 7200
Daily bank reconciliation 93
KEY OPERATING STATISTICS

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Cost through
• Process Standardization
• Enhanced Cash flow management due to cost optimization and debtor collection
• Co-location of activities and Task level automation
Business efficiencies
• Productivity gains due to automations / process improvement
• Uniform practices and procedures
• Operational efficiency through a One stop document management solution
• Ease in Document archival and retrieval
Compliance and Controls
• End to end visibility and seamless operations
• Independent, accurate and reliable reporting
• Enhanced financial transparency and regulatory compliance
• Facilitate decision making through spend analytics
• Proper planning of mergers/ de-mergers - seamless and timely delivery
• Harmonize the business processes across India, leading to even bigger savings on overheads
 Complexity  Capacity  Compliance  Value Cost+ + + =
HOW OUR CLIENTS HAVE BENEFITED

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PLAN AHEAD
Continuous Innovation through Quality, Technology and Process Improvements
Quality Technology
Process
Improvement
Process Automations such as:
• Workflow and Document Management Solutions
• ERP & Workflow Integration
• Automation of cash Management Reconciliation
• Duplicate Audit tools
• Auto e-mailer of Debit notes
• Mass data upload into ERP
Process Improvements such as:
• Technology automations
• Robust performance reporting –
daily, weekly & monthly reports
and dashboards on key metrics
• Value / Non Value Addition
analytics
• Voice of Customer
• Lean Six Sigma initiatives
Quality focus through:
• Dedicated Quality team
• Quality Control – process audits,
monitoring and feedback mechanisms
• Quality Assurance – SOP best
practices, SLAs, Standardization
• Quality Audits as Transaction Audit,
Compliance Audit

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Expansion into India Market

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Context for Service Providers
 Evolution … Slow and steady
 Large companies are moving, medium companies are
thinking
 Plenty of paradigms and barriers
 Our focus is on ‘Middle India’
 BPI vs BPO model

20. @ 2012 – Proprietary and Confidential Information of nhbs
How
Build capabilities around Holistic Process Improvement
Versatility of Product portfolio / ecosystem
Co-sourced and Outsourced
Demonstrate Capabilities, Trust, Security
Drive P&L Value

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About nhbs

22. @ 2012 – Proprietary and Confidential Information of nhbs
NHBS is a Business Services company (NuFuture Haribhakti Business Services
Spawned from captive companies of two visionary promoters
Proof of concept established in managing size, scale and complexity
Infrastructure, human capital and technology in place
Able to deliver unmatched value and reach

23. @ 2012 – Proprietary and Confidential Information of nhbs
OUR VISION
TO SHARE OUR KNOWLEDGE,
EXPERTISE AND EXPERIENCE TO TAKE
OUR CUSTOMERS TO THE NEXT LEVEL.
OUR MISSION
TO FUEL THE GROWTH ENGINES OF
INDIA —THE COMPANIES AND THE
ECOSYSTEMS THEY OPERATE IN — BY
PROVIDING COMPREHENSIVE
‘BUSINESS NEXT’ SERVICES AND
SOLUTIONS.

24. @ 2012 – Proprietary and Confidential Information of nhbs
Indirect
Suppliers
Indirect
Vendors
Investors
Trade
Associations
Government
Social
Media
Other
Stakeholders
Business
Channels
Direct
Suppliers
Subsidiaries
Direct
Vendors
Customers
Core
OUR MODEL
STRENGTHEN AND ENABLE BUSINESS ECOSYSTEMS

25. @ 2012 – Proprietary and Confidential Information of nhbs
OUR PRODUCTS
SEAMLESS BUSINESS NEXT SERVICES AND SOLUTIONS
Indirect
Suppliers
Indirect
Vendors
Investors
Trade
Associations
Government
Social
Media
Other
Stakeholders
Business
Channels
Direct
Suppliers
Subsidiaries
Direct
Vendors
Customers
Core
o Value Added Services
includes:
o Business
Consulting
o Process
Improvement and
Redesign
o Corporate Finance
o Technology ERP
Implementation
o Bespoke
Technology
Development
o Outsourcing Services
includes:
o Finance and
Accounts
o Third Party
Assurance
o Inventory and
Fixed Asset Audit
o Interior Solutions
o Business
Processes

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OUR CLIENTS

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OUR LEADERSHIP
ANURUP PRUTHI
Managing Director
Anurup has worked in leadership positions in Finance,
Operations, Strategy,
Supply Chain and Planning across the globe and has
spent over 21 years across FMCG, Retail, Distribution,
Manufacturing and Supply Chain sectors.
VIPUL THAKER
CEO, SME Services
Vipul comes with more than 16 years of experience in
the BFSI vertical and SME companies. He is a Fellow
Chartered Accountant, Six Sigma Black Belt and a
Certified Internal Auditor from the Institute of Internal
Auditors, Florida, USA,
with experience in all fundamental areas of Chartered
Accountancy practice.
PUNEET GUPTA
Business Head – Business Process Outsourcing
Puneet brings in more than 16 years of work experience
as a CA and a Cost Accountant in Sportswear, IT, BPO
and Retail sectors. He has worked with industry leaders
in areas like third-party service delivery, finance and
accounts,
corporate planning, treasury, statutory compliances and
shared service centre.
KAILASH PARIKH
Chief – People Office
Kailash Parikh leads the HR, Recruitment and L&D
functions of nhbs. Her qualifications include MSW,
MBA, LLB from MS University, Baroda. Kailash has
over 20 years of experience in HR and related fields in
various manufacturing and retail companies. Her key
skills span Organization development interventions,
Competency modeling, Assessment centre’s, Employee
life cycle management, Talent acquisition &
Development and Industrial relations.
.

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Thank You