A Forrester Consulting study of Process Mining leader Celonis has reported payback within six months, experienced benefits of $44.1 million and an ROI of 383% in just three years.
The commissioned Total Economic Impact study outlined the cost savings and business benefits companies can achieve when leveraging the Celonis Process Intelligence platform.
“Today’s organisations are under immense pressure to maximise efficiency, reduce costs, and accelerate value realisation,” said Carsten Thoma (picutured), President and Board Director at Celonis. “We believe these findings quantify the significant impact that our Process Intelligence platform has on achieving these critical objectives and delivering continuous operational improvement.”
Based on interviews with Celonis customers, Forrester developed a composite organisation to illustrate the quantified benefits, which include significant cost savings across various business functions.
These quantified benefits were:
- Captured an additional $3.3 million in revenue from removing order blocks. Before the investment in Celonis, the composite organisation automatically rejects orders that do not meet the minimum order quantity resulting in lost sales. Order management process improvements identify and combine these low-quantity orders, capturing revenue that would have otherwise been lost.
- Shortened delivery cycle with only 14% of deliveries needing human intervention. Celonis identifies unnecessary credit blocks and inventory blocks for the composite organisation, which accelerates delivery processing. The percentage of deliveries without any human intervention increases from 33% to 86%, with only 14% of orders needing human direct intervention.
- Improved inventory management enables cashflow liquidity, a 50% penalty reduction, and a shortened delivery cycle. Inventory management process improvement leads to shortened delivery cycle, improving the liquidity of cash flow and reducing penalty payment in some regions. Over three years the cost savings reach $24.5 million in present value.
- Saved 1% of factory operating costs due to reducing redundant inventory. The inventory management process improvement also contributes to more streamlined factory operations. It reduces the cost of inventory storage with a clear understanding of materials needed to maintain continuous operations without risking shutting down factory operations. Over two years the cost savings reach $8.9 million in present value.
- Saved 1% of overall transportation cost from logistics consolidation. The implementation of the inventory management process leads to improvements in logistics efficiency. It optimises transportation costs through consolidating shipping lanes, saving fuel cost, and reducing duplicate payments to drivers. Over two years the cost savings reaches over $5.7 million in present value.
- Saved 62 FTEs due to improved invoice processing. The composite organisation benefits from the finance process by removing avoidable and redundant activities for accounts payable and accounts receivable. Over one year of implementation across four regions, the cost savings from invoice automation reach $1.7 million in present value.
The study said the interviewees’ organisations were large, international organisations with complex processes in the supply chain, finance, and IT departments. The interviewees reported a lack visibility into their supply chain and faced process inefficiencies. The various automation tools in place could not enable decision-makers to fully understand the process reality throughout the workflows.
“Interviewees said that prior to using Celonis their organisations were unable to discover process inefficiencies with existing tools, causing revenue leakage and sales deviation. After the investment in Celonis, the interviewees’ organisations reduced operating costs for the processes that implemented Celonis,” the study said.
Learn more about the results of The Total Economic Impact™ Of Celonis and download the full study on the Celonis website.
