leading Indian pharmaceutical company manufacturing a wide range of affordable and high quality generic medicines, trusted by healthcare professionals and patients across geographical boundaries. It is ranked amongst the top ten generic pharmaceutical companies worldwide. Newgen was selected to implement a unified business workflow automation and document management solution in order to streamline the Accounts Payable (AP) process at a Shared Service Centre (SSC)

1. Benefits from
Implementing Newgen's BPM Solution
at a Shared Service Centre

2. At a Glance
Newgen was selected to implement a unified business
workflow automation and document management
solution in order to streamline the Accounts Payable (AP)
process at a Shared Service Centre (SSC)
Website: www.newgensoft.com
Key Challenges
• Various activities and systems involved in invoice
processing working in isolation
• Dependence on physical movement of invoices across
departments and locations
• Lack of an efficient monitoring and tracking
mechanism
• Difficulty in conducting internal audits and meeting
compliance standards
Key Benefits
• Increase in employee efficiency and productivity
• Reduction in bill payment cycle
• Better audit and compliance management
• Establishment of an efficient tracking and monitoring
mechanism
• Reduction in cost incurred per employee
• Efficient utilization of capital assets and infrastructure
• Scalable solution that enables faster roll-out of Return on Investment
initiatives
of 135%1
1
Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated
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3. Overview
The client is a leading Indian pharmaceutical company
manufacturing a wide range of affordable and high quality
generic medicines, trusted by healthcare professionals and
patients across geographical boundaries. It is ranked
amongst the top ten generic pharmaceutical companies
worldwide.
With a presence in over 49 countries, 11 manufacturing
facilities and a diverse product portfolio, the company has
vendors scattered across multiple locations in India. As a
result of this geographical spread, company's Finance &
Accounts (F&A) Department had a difficult task
coordinating payments made and received on behalf of the
Key Operational Challenges
With a pan India presence, the F&A Department had the
task of tracking and monitoring invoices raised by its
vendors. Coordination of this activity affected the day-to-
day operations with frequent instances of loss of invoices.
This had an adverse impact on the overall performance of
the department.
The absence of a robust tracking and monitoring
mechanism affected audit and compliance management.
The audit process was time consuming, and an average of
two days was required to locate physical documents.
Tracking the lost
invoices was difficult
and time consuming
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4. The Solution
In order to address these challenges and streamline its The rule- and role-based BPM solution processes these
Accounts Payable (AP) process, the management decided to workitems, and enables the company to efficiently and
establish a Shared Service Centre (SSC). The primary accurately make payments to its vendors.
objective was to centralize the AP process and increase its
Automation and the absence of physical movement of
efficiency, accuracy and productivity. In addition, it was
documents have made the AP process more efficient. The
decided that a unified Business Workflow automation
solution also allows the company to archive invoices and
solution was required to support the business needs of the
other supporting documents in OmniDocsTM from where
Shared Service Centre.
they can be viewed, downloaded and printed online as per
Newgen was selected to implement the business workflow user requirements.
automation solution and integrate it with SAP. The products
used for implementing the solution by Newgen are
OmniScanTM (OmniCapture), OmniFlowTM and OmniDocsTM Minimized user
All the invoices and supporting documents are sent to the
SSC, where they are scanned and introduced into
interface has increased
OmniFlow
TM
(workflow system) using OmniScanTM. The accuracy of data being
invoices are then segregated based on their work type
(PO/Non-PO) and routed to the respective users for further captured
processing.
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5. Exception Resolution
by Supervisor
Other
Exception
Faster access to invoices Correct
through workflow, leading to Invoice
reduction in waiting and Data Entry and Posting of case details
processing time. Also, Verification directly into SAP
invoices are segregated on Image
the basis of PO or Non-PO Exception
PO
Transactions
Rescan Cheque details captured and
payments approved in SAP
Non-PO Payment Run
Transactions Cheque Details
Exception Resolution
by Supervisor
Other
Exception
Correct
Invoice
Invoices/Documents are
scanned, indexed and Posting of case details
Data Entry and
uploaded in the workflow directly in OmniFlow and SAP
Verification
from multiple locations Image
Exception
Rescan
Business Workflow Automation Solution
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6. Key Benefits and ROI
Benefits accrued to the company were both direct and
indirect. Reduction in operating costs, travel and
communication expenses, office stationary and
The company achieved
infrastructure usage were some of the benefits achieved by
centralization and implementation of the BPM solution. The
a headcount reduction
*
company also achieved other benefits like increase in
productivity and reduction in IT infrastructure costs through
of 60% compared to
better utilisation of capital assets. the global average of
Newgen's BPM solution has enabled the company establish
a comprehensive monitoring and tracking mechanism.
20%#
Image enablement of SAP helped in streamlining internal
audit and soft archival of physical documents to meet company to identify bottlenecks and take appropriate
compliance standards. remedial action.
Key benefits from the solution include the following:
• Efficient utilization of capital assets and
• Improved employee productivity: Newgen's rule- infrastructure: Capital assets and infrastructure are
and role-based workflow solution ensures efficient being utilized more effectively. The branch offices of
workload balancing, resulting in higher employee the company are being utilized for other core activities
utilization and productivity. of the pharmaceutical company.
• Better audit and compliance management: • Scalable solution that enables faster roll-out of
Internal audit, a tedious and rigorous process, which initiatives: The company is better equipped to
took 5* days at an average, is currently completed manage growth and strategic initiatives because the
within 3* days. Newgen's system maintains a solution is scalable and it enables faster roll-outs. Over
complete history of every invoice, including the the years, the company has been able to increase the
approval and processing history along with an workload at the Shared Service Centre, thereby
electronic image of the document. Also, customized facilitating other offices to concentrate on their core
reports give the administrator complete control over activities.
the activities of the SSC.
• Seamless integration with SAP: The solution has
• Reduced cost: The solution has also enabled the been seamlessly integrated with SAP to further
company to streamline its process, thereby reducing enhance the efficiency of the overall system.
the cost per transaction. It has also resulted in
reduction of administrative overheads incurred per
employee. The company has
• Efficient tracking and monitoring mechanism:
Vendor payments are made much faster due to achieved a 135%1 ROI
accurate data capturing and faster bill payment cycles.
Real-time tracking of invoices is possible, enabling the
over a three year period
1
Refer “Methodology” section for details on how Return on Investment (ROI) has been calculated
*
As per data provided by Newgen's client
#
As per Deloitte Research's Global Shared Service Survey, which was based on the responses of around 70 executives of leading shared
services organizations around the globe
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7. Methodology
The ROI calculation represents the relative value of a • Resource savings – from reduced hiring
project's cumulative net benefits over the analysis period,
• Time savings – reduction in processing time for audits,
divided by the project's cumulative costs, expressed as a
faster vendor payment processing
percentage. In a formula, this can be represented as: ROI =
cumulative net benefit / total costs. The ROI achieved from • Capital expense reductions – savings in expenses such
implementation of Newgen's BPM solution was derived on as facilities, administrative overheads
the basis of total benefits achieved and investments made
• Productivity benefits – increase in volumes of
by the client over a period of three years.
transactions processed per day
Investments includes both one time and annual recurring
The above mentioned data and information was sourced
costs incurred by for components like
through the following:
• Implementation, software and initial license cost
• Primary Research (customized questionnaire)
• Hardware
• Secondary Research (Third Party Industry Reports and
• Maintenance and production support Deloitte Global Benchmarks and Survey Reports)
• User training
Benefits were calculated by quantifying the returns
achieved through higher employee productivity and
reduction in various cost parameters. The key benefits
identified for analysis were:
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8. Disclaimer
The ROI analysis was commissioned by Newgen and has been done by Deloitte for the clients provided by Newgen. The analysis was done based on
data provided by Newgen and its clients and Deloitte makes no assertions on the potential ROI that other organizations might receive by using
Newgen's solutions. Deloitte has verified the data but due to nature of the study and solution implementation timelines involved certain
assumptions have been made to derive the potential ROI therefore it can impact the accuracy of the data and analysis. This case study is a validation
of the benefits that client derived from implementing Newgen solutions in its operational and business scenario and is not meant to be used for
competitive product analysis. The study was commissioned only for calculation of the ROI derived from implementing Newgen's solutions and not
to endorse its solutions by Deloitte.
This document contains general information only and Deloitte Touche Tohmatsu India Pvt. Ltd is not, by means of this publication, rendering
accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such
professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or
taking any action that may affect your business, you are advised to consult a qualified professional advisor. Deloitte, its affiliates and related entities
shall not be responsible for any loss sustained by any person who makes decisions based solely on the information present in this publication.
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document.
About Deloitte
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independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its
member firms.
About Newgen
Newgen Software Technologies Limited is the market leader in Business Process Management (BPM) and Document Management System (DMS),
with a global footprint of about 750 installations in over 35 countries. Newgen is recognized by distinguished analyst firm IDC in its exclusive report
“Newgen Software: Global Leader in Business Process Management and Document Management Solutions.” With HSBC and SAP investment,
Newgen is one of the rare product companies to have backing of both leading financial and technology companies of the world.
Winner of prestigious awards, such as CNBC-TV18 “Emerging India Award 2008”, Frost and Sullivan's “Market Leadership Award for Document
Management System and Workflow Software & Services” and “Distinguished Application Product Company” by NASSCOM, Newgen Software is
an ISO 9001:2000, ISO 27001 certified and CMM Level 4 company.
Newgen Software Technologies Ltd. Newgen Software Inc.
A-6, Satsang Vihar Marg, Tel: +1-703-749-2855
Qutab Institutional Area, Tel: +1-510-794-6724
New Delhi – 110 067 Email: info@newgen.net
Tel: +91-11-26964733, 26963571, 26856871
Email: newgen@newgen.co.in
Website: www.newgen.co.in