Mining deeper levels of trust
KPMG and Celonis helped a large biopharmaceutical company use automated process mining to optimize sourcing and contract management.
Client
A biotech leader
Sector
Life sciences
Project
Process mining and target operating model for strategic sourcing
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Client challenge
Our client is one of the world’s largest independent biopharmaceutical companies, headquartered in the U.S.
Facing bottle necks in the source-to-contract process, operational inefficiencies, and lack of transparency in the procurement process, the cycle time to complete sourcing projects crept upwards to 200 days. The company was already in the process of replacing its current procurement system, SAP Ariba, with the Workday Scout strategic sourcing platform, when it also hired Celonis to implement automated process mining capabilities and optimize its procurement and contract management processes.
Celonis asked alliance partner KPMG to support the implementation.
Standardized processes cut cycle time in half, built trust among vendors, and secured better terms for the client.
Key KPMG initiatives
Applying our cross-functional resources with extensive experience in integrating process mining solutions and creating analytics needed to measure performance against industry benchmarks, the KPMG team worked with the client’s process owners to:
1
Identify the right KPIs and data.
2
Propose improvements to procurement processes, as well as the use of the Celonis execution management system.
3
Instill industry-leading practices and metrics fundamental to building trust in the client’s procurement processes.
In addition, KPMG divided the holistic source-to-contract process into three distinct components—sourcing events, sourcing projects, and sourcing contracts—to help the client identify bottlenecks. Then we built a dashboard around specific use cases to help the organization better source events and projects and analyze contracts.
Leveraging the KPMG Powered Enterprise methodology, we helped the company build out the target operating model for the Workday Scout implementation. Our team provided leading practices, benchmark data, roles, and procurement controls for an end-to-end process view, while Celonis accelerators and assets sped up the transformation process.
Business impact
Working together, KPMG and Celonis helped the client remove considerable complexity from its sourcing processes to achieve these benefits:
1
Cut process cycle time in half, from 200 to 100 days, by identifying the root causes of critical bottlenecks and standardizing processes.
2
Identified $1.2 million in potential cost savings by eliminating manual contract approvals and defining process requirements for new system implementation.
3
Identified an 8-to-19 percent reduction in process rework by removing undesired activities.
4
Established new purchasing authorizations dependent on the level and type of spend.
5
Outlined an actionable roadmap to streamline the end-to-end process based on data-driven results—for example, using our target operating model to show how current individual process paths can be cut in half to arrive at the industry standard.
6
Gained a deeper understanding of the new Scout platform and ways to negotiate better deals to realize impact faster.
Why KPMG?
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Clients want advisors with a deep well of experience and technology solution partners
KPMG draws upon our alliance with Celonis to synergize the platform’s strengths in automated process mining with our life sciences domain knowledge and functional strength in procurement and data analytics to build standardized processes that engender trust among vendors and secure better terms for the client.
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We identify risks and provide mitigation strategies before issues occur
We provide insight into upcoming milestones and deliverables to reduce the impact of program issues and delays to elevate stakeholder trust.
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We work as one team with deep strategic and technical experience
Large, complex enterprises with ambitious process and technology aims need journey advisors with the bench strength and scale to pace with them. We can deliver big-picture client priorities on ambitious timelines, providing strong continuity of vision and execution capabilities.
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Download PDFMeet our team
Todd Babione
Principal, GRC Technology, KPMG US
Andrew Vogel
Managing Director, Advisory, HCLS Finance, KPMG US
Todd Babione
Principal, GRC Technology, KPMG US
Andrew Vogel
Managing Director, Advisory, HCLS Finance, KPMG US