For Deutsche Telekom Services Europe (DTSE), a subsidiary of telecommunication firm Deutsche Telekom, success means providing innovative, high-quality, end-to-end shared services across the company. DTSE is a shared services centre combining the finance, reporting, procurement and HR functions to deliver a highly digitized procure-to pay process for the entire Deutsche Telekom group.
- Duplicate payments to vendors led to high cash losses
- Blocked payments prevented them from maximizing cash discounts
- Suboptimal delivery date accuracy caused harsh penalties
- Employees were wasting time on low-value transactional tasks
- Discussions, and ultimately business decisions, were based on subjective experiences, not numbers.
Partnering with Celonis, DTSE connected data from more than 10 source systems — such as SAP Ariba and Salesforce — gaining unprecedented visibility into their process flows. The partnership allowed DTSE to track the data produced by its enterprise software systems, extracting knowledge from event logs to audit and visualise business processes.
The process mining initiative provided a number of benefits to DTSE, including;
- Maximising cash discounts: Real-time reports with open blocked invoices helped DTSE achieve a cash discount rate of 96% and led to additional savings of €40M per year.
- Paying on time: With the help of real-time alerts and automated process steps, DTSE reached an on-time payment rate of over 90%.
- Increasing automation: DTSE increased the no-touch rate within order management significantly, which freed up capacity for tactical sourcing and resulted in tactical savings of €12M. More efficient processes mean DTSE’s Purchase Orders are now right the first time, over 90% of the time.
- Avoiding duplicate payments: DTSE also established a real-time analysis for duplicate payments. By comparing all outgoing payments and flag duplicate payments to employees, DTSE has saved €3M — and blocked any future duplicate payments too.
- Enforcing contractual penalties: DTSE also systematically analyses contracts for contractual penalty options. As a result, they received approximately €1.6M in penalties in 2019 alone.
The initiative has laid the framework for DTSE’s artificial intelligence push; supporting the identification of the most promising use cases for AI, selecting the right technology and monitoring its impact on the business.