Do you recognise this?

Your internal service organisation has evolved over time, via integration of multiple service departments, organic growth, or other reasons. Nowadays it consists of multiple legal entities, each of them managing, delivering and invoicing services to their customers. Service portfolio, pricing and organisational responsibilities are a mix of global, regional and local agreements. Multiple IT systems are in use to support the different ways of working.

Although you deliver quality services, you have regular discussions with your customers about the transparency of your cost and the pricing of your services. However, the internal spaghetti you face makes it hard to benchmark prices and to provide the required transparency.

Characteristics

The situation outlined in the introduction usually has some typical characteristics:

• Continuous discussions with your customers about the quality, cost transparency and pricing of your services 
• No consistent and clear definition of the services in the service portfolio
• Regional and local service entities with different ways of working
• Multiple IT systems with multiple sets of master data
• Numerous intercompany transactions
• Significant consolidation effort
• Customer and suppliers contracts handled through multiple entities

The price you pay for this complexity is high! Think of dissatisfied customers and the high cost involved.

Voorne Partners can help you unravel the spaghetti and to create the required transparency and lower your cost in order to run your shared services as a business.

 

How to get the required transparency in place? The Single Services Entity can be the solution!

 

The transparency of the Single Services Entity (SSE)

Within the SSE business operating model, only one (legal) entity, the SSE, owns all services, regardless of the physical location of the production and delivery of these services. 

 

 

All transactions to purchase service components and sell services are performed on behalf of the SSE. In this way the administrative flow of services and monetary flows stay within the SSE, without changing the physical appearance of the services supply chain. The SSE needs to adhere to the legal and fiscal legislation in each country of operation. There are several solutions available to tailor these requirements and make the SSE the optimal lean business operating model.

The effects

• ONE way of working
• ONE face to customers and suppliers - customers pay to SSE, suppliers are paid by SSE
• ONE entity (the SSE) owns all working capital
• ONE IT platform with ONE set of master data
• ONE set of business information available within ONE system
• ONE platform for growth - reduced implementation cost & implementation lead times

Our references

More than 50 of our customers enjoyed the benefits of a changed business operating model.

 

By applying our end-to-end shared services expertise and using our proven project and change management methodologies we ensure that the change actually happens.

Voorne Partners would like to help you in your transformation journey!