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Overview
A Fortune 500 global consumer products company faced significant challenges after losing a major customer, resulting in a $500 million revenue loss and a corresponding decline in profitability. The finance department was perceived as expensive and ineffective, with disparate processes and reporting across countries leading to duplication of work and inefficiencies. The CFO sought to use improvements in finance as a model for broader organizational change.
AlixPartners took a holistic approach to transform the finance function, focusing on five key drivers: eliminating non-value-add activities, streamlining the organization through global centers of excellence, standardizing and automating reporting and processes, and increasing shared services and outsourcing. This comprehensive review enabled the company to reduce the number of reports by 40%, simplify its structure, and outsource lower-value accounting processes through a structured RFP process.
The transformation delivered substantial results, including $50 million in savings – approximately a 30% reduction from the baseline over a two-year period. The company achieved a 40% decrease in reports across legal entities, improving efficiency and operations. Full implementation and effectiveness were reached within two years, demonstrating the speed and sustainability of the strategy.