Coca-Cola Enterprises Achieves Major Cost Savings through Finance Optimization Project

| Success story

Capgemini combines CCE’s existing shared services center with a Rightshore® outsourced solution to improve efficiency

“ The concept of Capgemini’s Rightshore® solution is a definite plus on their side of the ledger. ”Joe Heinrich, Vice President, Finance Global Initiatives, CCE

The Situation

In early 2007, Coca-Cola Enterprises (CCE) conducted a benchmarking exercise to see how the organization’s effectiveness and efficiency stacked up against the competition. With this study they identified that to become more efficient, CCE would need to conduct as much of its transaction processing as possible in a low cost country, either with a third party outsourcer or a captive shared services center. The economic goals were to achieve cost savings of $20 million per annum in CCE’s transaction work, through a finance optimization project.

The Solution

CCE chose Capgemini to implement comprehensive finance and accounting (F&A) solutions throughout CCE’s global business to create an efficient process in a cost-effective environment for order-to-cash services, purchase-to pay accounting, and record to- report activities, as well as a comprehensive document management solution. The transformation project focuses primarily on a joint CCE-Capgemini unique order-to-cash approach, utilizing a best-of-breed credit toolset designed to increase the effectiveness and efficiency of credit and collection departments. This order-to-cash solution is being implemented in all delivery locations and will include collections management, cash applications, route accounting, master data, credit, accounts receivable and customer support services. In addition, the automated credit module enables CCE to apply a single set of approved rules and procedures to every credit decision, improving the efficiency and consistency of the decision making process. As part of the implementation, CCE has utilized Capgemini’s Rightshore� delivery model to reposition support from its Tampa, Dallas, Toronto, Paris, Brussels and London offices to Capgemini’s India, Guatemala and Poland delivery centers.

The Result

The contract with CCE will run for seven years from July 2008, and the total contract value amounts to approximately $137 million. The partnership will realize the following benefits for their business:

  • accelerate the transformation and help achieve near world-class performance through standardizing and streamlining operations
  • deploy a global unified solution across all CCE business units to support the business that includes standardization and process improvement while maintaining high standards of control and compliance
  • achieve a minimum savings target of 25%
  • mitigate risks while transitioning the work and implementing new tools, systems and technologies.