Ranging from strategy to design and implementation, the speed of execution and quality of deliverables was outstanding; I had never before achieved so much in such a short time in a consulting project.”

Client

“Integrated Business Solutions (IBS) for an international logistics service providerIn one year from strategy and

concept design to piloted

operational establishment

of global shared services to

save 10% OPEX

The SituationThe difficult market environment of our client, a European based freight forwarder, is characterized by strong competition, continuously high market volatility and minor growth opportunities in the market. Our client has to satisfy price sensitive customers asking for constantly higher quality levels as well as for more flexible, more transparent and globally available services. Resulting from those external challenges, our client has to address the improvement of its cost base to increase productivity while stabilizing or even increasing service quality, reliability and flexibility.

To ensure future competitiveness and to demonstrate industry leadership, our client decided to reshape its operating model towards consolidation and regionalization of transactional operational services. Within the scope of a company-wide IT standardization and re-organization program, our client set the goal to consolidate 20% of the operational resources in an integrated business solutions (IBS) function.

The SolutionTogether with our client we established a global service unit comprising four regional Shared-Service Centers (SSCs) on different continents. The notion behind the strategy is to split core logistics and related processes by client-facing / competency based and non-client-facing / transactional tasks. Based on the degree of standardization and transactional volume, non-client facing transactional tasks are furthermore separated into regional and global services allowing for an even greater fit of services with regards to language, regional competencies and balanced cost reduction while meeting our client’s internal need for standardization. Thus, e.g. the export and import documentation processes are provided by regional SSC delivery centers, whereas e.g. track and trace or master data maintenance are provided by global SSC centers. As this integrated business solutions (IBS) organization in the latest stage comprises 20% of all resources,

IBS is the solution for next level Shared Services of Capgemini Consulting

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©2017 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior writtenpermission from Capgemini. Rightshore® is a trademark belonging to Capgemini.

Contact

Our client is a logistics service provider based in

employees contribute to customer-tailored service delivery in transport and logistics generating a yearly revenue of more than 5 billion Euro. With its global footprint our client is constantly facing challenges regarding its global operating model. The decision to implement an integrated business solutions concept will help our client to improve both, competitiveness and scalability and persist as one of the top players in the industry.

Volker DariusVice PresidentFinance Transformation +49 151 4025 2497volker.darius@capgemini.com

About Capgemini

Learn more about us at

www.de.capgemini.com

the IBS operating model included service center specific structures from day one on. This specifically included a comprehensive state-of-the-art service and performance management approach, e.g. with transactional pricing for standard products, Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) linked to organizational incentives and common governance structures.

Capgemini Consulting applied a three step approach covering the initial detailing of strategy, the subsequent definition of standard services and elaboration of the roll-in concept, including testing in a pilot country, and the final implementation and global roll-out of the developed IBS approach. We supported the client in finding and rapidly aligning a suitable strategy fitting his needs. Next, a detailed location analysis was conducted, revealing potential countries and cities for the build-up of regional and global SSCs. Our approach included the ramp-up of a regional pilot center in the EMEA region from scratch within only four months, which successfully proved the technical and organizational appli-cability of our concept beside ensuring service quality and preparing a solid basis for a standardized roll-in approach. The generated insights and knowledge from the pilot were applied to the following roll-ins of EMEA and APAC countries in the implementation phase which Capgemini Consulting guided and accompanied until our client’s IBS management organization was built up.

The ResultsThe setup of the state-of-the-art SSC operating model enables our client to meet custo-mer demand and market pressure by internally optimizing organization and processes.

• Cut overall operating costs by roughly 10% p.a. in steady state operations after completion of roll-ins through consolidation of 20% of FTE’s in affected processes in global and regional SSC’s

• Increased transparency and additional long-term productivity impacts by standardized regional and global processes

• Higher flexibility and scalability for the local business by shifting former fix to variable costs following market volatility

• Securing of service quality by operational service management implementation on team-lead level, also applying Lean principles

• Helping country organizations dedicate more time to targeted client-interaction and customer-oriented solutions by centralizing a major part of the administrative and repetitive workload with little or no customer visibility

• Making use of increased sourcing flexibility and of economies of scale through “right-shoring®”

The CollaborationA cross-functional Capgemini Consulting team, consisting of supply chain, change management and shared services experts supported the client from the early days of strategy design until implementation and first country roll-ins. In very intense collaboration with our client we achieved – in one year only – the embedding and acceptance of the IBS strategy in company governance structure and business, selected and ramped up service center sites, successfully developed a concept which has been tested in a pilot and rolled-in first EMEA and APAC countries to global and regional Shared Service Centers. Early top management commitment, among others obtained through week-one focus interviews, assured visibility and confirmation of project orientation and was one of the key success factors for fast execution. Furthermore, the consequent alignment of strategy and delivery framework with operations as well as the combined simulation of business and IT very well proved operational relevance of the concept. Workshops with focus on end-to-end process analysis eliminated operational resistance and proved global applicability when designing IBS services and later kicking off the country roll-ins. Finally, the early setup of our client’s line organization, a clear concept of knowledge transfer, innovative tools, and a standardized approach for industrialized country roll-ins enabled the newly built up organization to quickly take on responsibility and keep a constantly high level of momentum.

Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in signi�cant transfor-mation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating signi�cant disrup-tions and opportunities, the global team of over 3,000 talented individuals work with leading companies and governments to master Digital Transformation, drawing on their understanding of the digital economy and leadership in business transformation and organizational change.

With more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50th Anniversary year in 2017. A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that �t their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.