5 FRESH Areas NSG GBS is Delivering Savings

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Editor Coda
Nov 16, 2016

Giant glass manufacturer NSG launched its Global Business Services organization in 2012. Four years on, it’s extending its reach in three ways: across new geographies, across a wider range of services, and up the value chain.

Regarding that third one – how the GBS is inching its way up the value chain – the organization is delivering major savings within these five areas:

  1. Tax. This means that the GBS now owns the filing of the tax returns – they are making sure that the returns are submitted on time. This results in a reduction in fines from tax audits. It also means that NSG is no longer relying on expensive external tax resource to backfill in the Tax department. By transferring tax activities to the GBS, local tax experts are freed up to use their tax intellect on more sophisticated problem-solving. Annual direct savings are in the region of $280,000 and indirects are $1million.
  2. Working capital.  The GBS has seen an 80% reduction in overdue receivables since they took this on. This has presented the business with a one-off working capital boost of over $20 million.
  3. Telecoms expenses. By scrutinizing telephone and mobile bills to make sure NSG is being correctly billed, the GBS has delivered annual savings in the region of $80,000.
  4. Procurement in Brazil: Because the GBS is preparing Master Data requests, it now takes only 4 days to process pre-work to set up a supplier, whereas it used to take 14 days.
  5. Material master data: Instead of taking 42 days to load correct information regarding materials (tax codes, shipped from, etc.) onto the system, now that it sits in the GBS, it takes 1 day.

To connect directly with Mike Stops, Head of NSG, you can find him on www.sharespace.digital where he is active in the Global Business Services Group.

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