Leading Color Stone & Diamond Jewelry Company , USA - FNA Outsourcing
 

A Leading color stone and Jewelry supplier based out of Los Angeles, USA with an Annual Turnover of US$ 40 Million.

 
Background
 
  • A leading color stone & Jewelry Co. in USA finding it tough to maintain it's Revenues & Earnings due to:
 

•  High Human Resource Costs
•  Higher Attrition Rates
•  Time consuming non-Core Functions

 

  • They identified non-Core Function F&A as an area consuming too many precious resources such as Time, Money & Knowledge without considerable value addition.

  • They decided to outsource its F&A Function to India and entrusted this responsibility upon AdComp OneSource, it's F&A Outsourcing Partner .
Objective
 

Improved Profitability with Outsourcing of ALL non-core Functions.

 
Outsourcing Exercise
 

  • AdComp OneSource with its well-defined Outsourcing Methodology, a dedicated Team of Chartered Accountants & Transparent working style initiated a phase-wise migration of this company's F&A Functions in Dec 2006.

  • A Startup Team of just 3 dedicated Members in Dec 2006 has today crossed the size of 6 Dedicated Members in April 2007.
     
  • 90% of their F&A Functions have been successfully migrated to AdComp OneSource and are being performed by Mumbai Team @99% Accuracy Levels.
     
  • Apart from Basic F&A Functions of this company like Book-keeping, AdComp OneSource Team in Mumbai also is responsible for
Key Functions such as:
Knowledge Functions
•  A/R, A/P Processing
•  AP/AR Reconciliation
•  A/R Follow-ups
•  Chargeback Management (for US Market)
• Consignment Memo Sales & Returns 		•  Sales Analysis
•  Revenue & Profitability Analysis
•  Category Profitability Analysis
•  Product Analysis
•  SKU Contribution Analysis
•  Product Performance Analysis
•  Customer Analysis
•  Customer Spend Analysis
•  Market Basket Analysis
•  Industry Analysis
•  Competitive Intelligence
 
Results
 

  • Real-time Support by 4 dedicated personnel working at USA Pacific Time, addressing their real-time F&A needs. Almost zero turnaround time.

  • Chargeback Management: In pre-Outsourcing days, Charge-backs (a typical American Accounting practice in Jewelry Industry of Deductions in Payments from Customers towards Expense share and other accounts) Management was a very non-priority periodic exercise, which presumed that deductions charged by Customers in Payments were in line with Agreed Terms and valid. This practice was drastically improved by dedicated resources deployed at AdComp OS in carrying out the required reconciliations and follow-ups with Customers and their NY team on DAILY basis. This resulted in substantial reduction in number and value of Chargeback Disputes.

  • Documentation of A/R processes improved drastically. Back up documentation is created and maintained with good audit trails.

  • Data entry period for A/R invoices and collections reduced from four days to one day leading to better working capital management.

 
 
 
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