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Expert Advice.

Combat margin erosion in five steps - Part Four: Centralization of repetitive, non-value adding tasks

12/4/2018

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With tech and AI more advanced than ever before, there’s never been a better time to centralize non-value adding tasks to prevent margin erosion.
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As you optimized your business processes, you will have highlighted repetitive, non-value adding tasks in the process. Typically you will have identified tasks in HR (e.g. on-boarding and payroll), Finance (e.g. accounts receivables/payables and reconciliation tasks) and Operations (e.g. submission of shipping instructions and reporting of shipment status).

You now want to centralize these tasks for two reasons:

  1. Once you centralize these tasks, you will be able to realize immediate productivity gains. 
  2. More importantly, you can now outsource/offshore these tasks to service centers in labour cost attractive countries; or, ideally, deploy RPA (robotic process automation).

These software robots literally work 365 days per year, 24/7, never fall sick, and do not (yet) negotiate their salaries on an annual basis. 

We have witnessed cases where one software bot assumed the work of 15 employees. This does not only have a positive impact on personnel expense, but also on data quality and timeliness. Moreover, your employees can focus and spend more time on value adding tasks.

Do you want to see what centralization can save you? We can help. Get in touch. 
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    Ingo Kloepper

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