Comprehensive Process Optimization
RANNIK
Agencias Navieras Rannik, with more than 100 years in the transport and logistics industry in the Dominican Republic, has positioned itself as a benchmark for comprehensive transport and logistics services. However, the need to optimize and standardize its billing and collection processes as well as purchasing and payments, as well as to improve inventory management and supplier control, became evident to ensure the efficiency and transparency of its operations.
London Consulting Group collaborated with Rannik Shipping Agencies to transform two major processes: Order to Cash and Procure to Pay. They defined roles, established indicators, and applied change management tools to promote a culture of continuous improvement. Thanks to this collaboration, Rannik reached new levels of operational efficiency, optimizing its purchasing cycles and guaranteeing effective control of the supply chain.
OVERCOMING SUPPLY CHAIN OPERATIONAL HURDLES
Before the project, Rannik Shipping Agencies faced several difficulties in its Procure-to-Pay flow, including:
- Absence of clear roles for approvals and purchase requests, generated delays and risks in decision-making.
- Lack of a formal structure for the classification of items and suppliers.
- Lengthy and untraceable purchasing processes, which limited the visibility of the administrative team.
- Dificultades en su flujo Order to Cash, incluyendo:
- Tiempos extensos del Ciclo de facturación y cobro impactando negativamente el flujo de caja.
- No se tiene visibilidad de punta a punta del process.
- Baja productividad del personal de la estructura de cobros.
CLIENT NEEDS
Rannik Shipping Agencies was looking to optimize and structure its purchasing processes to achieve an efficient, controlled operation, aligned with modern management practices. The implementation of the Dynamics system was to boost operational efficiency and enable better decision making. To this end, the client established the following objectives:
Purchasing Process Optimization
Improve every phase of the procurement process, from requisition to purchase order execution, with a focus on efficiency and accuracy in the Dynamics system.
Dynamics System Parameterization and Standards
Adjust Dynamics to centralize information and establish a standardized workflow that avoids duplication and errors, as well as ensuring that each user has well-defined roles.
Visibility and Traceability in Purchases and Payments
Implement a tracking and traceability model at each stage of the purchasing and payment cycle, ensuring control and transparency for administrative and operational teams.
Automation and Use of Technological Tools
Leverage technology platforms to digitize and automate processes, promoting the intensive use of the company's systems to reduce administrative time and costs.
Load Balancing and Role Restructuring
Redefine and balance the workloads of the purchasing and payments team, ensuring a distribution of tasks in line with their capabilities and roles.
Training and
Monitoring
Train those responsible for each area in the use of new tools and in the management of their activities, to foster a culture of continuous monitoring and supervision.
Indicators for
Decision Making
Design key performance indicators that provide accurate data for decision making, facilitating analysis and improving effectiveness in purchasing and payment management.
Fostering a Culture of Results and Continuous Improvement
Establish an organizational culture focused on results, based on action plans and value generation, and supported by the adoption of the new tools at all levels of the company.
Reduction of days in the whole “Order To Cash” cycle
Improve administrative processes for invoicing, payment collection and the generation of credit notes and use of technological platforms throughout the process.
OPERATIONAL IMPACT AND TRANSFORMATIONAL CULTURE
The London Consulting Group team worked hand in hand with Rannik in a methodological and collaborative process that facilitated the redesign of workflows accompanied by a governance and leadership model. The most relevant initiatives generated the following impacts.
- Procure-to-Pay (processes from purchase order to payment):
- 43% reduction in the purchasing cycle.
- 66% increase in purchase orders within service times.
- Significant annual savings (double digits) through the implementation of tendering processes for the main groups of items.
- Increased productivity in the purchasing team, achieving a 22% reduction in administrative time and digitization of reports.
- Traceability and transparency through the implementation of Power BI dashboards connected to Dynamics, allowing visibility in each phase of the P2P process.
- Order To Cash (processes from invoicing to payment collection):
- Reducción de un 65 % en los días de Facturación.
- Incremento de un 53% en la productividad del personal de facturación de las diferentes unidades de negocio.
- Reducción de un 61% en el promedio de días de cobro.
- Definición de roles, responsabilidades y actividades para garantizar sincronizar esfuerzos y garantizar resultados.
- Implementación de 8 foros interdisciplinarios enfocados en una cultura de resultados a nivel estratégico, táctico y operativo.
The restructuring of the Dynamics system and the implementation of Power BI tools allowed Rannik Shipping Agencies to automate their purchasing and payment management. This improved operational efficiency and facilitated agile decisions based on real-time data.
- 01 Optimization of the Dynamics System
- 02 Report Automation
- 03 SQL queries and Power BI
- 04 Decision-making Training
- 05 Increased Operational Efficiency
Optimization of the Dynamics System
The purchasing, procurement and accounts payable modules were restructured, clearly defining roles and approval flows to streamline the process.
Report Automation
Manual reports were eliminated, significantly reducing administrative time and improving efficiency.
SQL queries and Power BI
9 SQL queries and more than 40 metrics were created in Power BI, providing real-time visibility and operational control of the Procure-to-Pay process.
Decision-making training
More than 12 employees were trained in data analysis and interpretation, improving the use of information for strategic decisions.
Increased Operational Efficiency
The digitalization and analysis of data made it possible to obtain information quickly and accurately, optimizing the use of resources.
Our client
"Thanks to all the process redesign, dashboard design and implementation of best practices with our teams, we are finally having visibility and better control of purchases".
-Omar Oviedo
Finance and Administration Director
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