My colleagues and I spent the afternoon with a long time client, who is wrestling with an issue: Their payables process is decentralized over 7 sites in the US feeding 2 ERP systems. They want the improved visibility to liabilities and cash flow forecasting that AP workflow provides, but can't decide whether to first centralize or go ahead and deploy workflow against the decentralized operation.
My view: Although centralization of the 7 processing sites will increase the time (and costs) to then get to workflow and its associated benefits, centralization is the foundation and first step toward their ultimate "point of arrival" where workflow generates the process benefits they seek.
Could they deploy workflow "on top of" the 7 locations ? Yes. But over the long run, centralization should have its own successful business case, onto which the workflow business case can then be layered. And that workflow business case will be much improved in a centralized environment versus a decentralized operation.
For this client, my belief is this: take the longer road, as it will generate increased process improvements and unit cost reductions albeit over a longer time horizon. Sort of like building a house - set the foundation first.
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