Celonis Case Studies Tech Data's Journey to Operational Excellence with Celonis

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	Tech Data's Journey to Operational Excellence with Celonis Celonis

Tech Data's Journey to Operational Excellence with Celonis

Celonis

Technology Category	Analytics & Modeling - Process Analytics Application Infrastructure & Middleware - Data Visualization
Applicable Industries	Mining Transportation
Applicable Functions	Logistics & Transportation Procurement
Use Cases	Inventory Management Time Sensitive Networking
Challenge	Tech Data, a leading technology distributor, merged with SYNNEX in September 2021 to become TD SYNNEX, the largest IT distributor in the world. With $60 billion in combined revenue and over 150,000 customers, the company needed to maintain high levels of operational excellence to serve its customers effectively in a rapidly evolving technology market. The company's role was to simplify the complexity of the IT industry for its customers and partners. However, the company faced challenges in adapting to the profound shifts impacting the IT industry, such as the transition from physical to cloud-based software distribution. Tech Data needed a platform that would provide the flexibility required to quickly embrace new technologies and consumption models. The company also needed to optimize its Procure-to-Pay, Order-to-Cash, and After-Sales Management processes to ensure customer satisfaction and reduce operational costs. Read More
About Customer	Tech Data is a leading technology distributor that helps vendors and resellers bring cutting-edge technologies to the market. The company offers a wide range of technical and business support services, enabling customers to get the most out of technology products, solutions, and services. In September 2021, Tech Data merged with SYNNEX to become TD SYNNEX, the largest IT distributor in the world. The company has $60 billion in combined revenue and serves over 150,000 customers. TD SYNNEX is committed to maintaining high levels of operational excellence to effectively serve its customers in a rapidly evolving technology market. Read More
Solution	Tech Data turned to Celonis, the market leader in Process Mining, to help simplify its process complexity and achieve operational excellence. After a three-month proof of concept, Tech Data adopted Celonis in May 2020. The platform provided comprehensive visibility into Tech Data's Procure-to-Pay, Order-to-Cash, and After-Sales Management processes, enabling the company to identify improvement opportunities that would have the most immediate impact on the business. With Celonis, Tech Data was able to record and visualize 40 million transactions, providing valuable insights into vendor performance and order ETAs. The platform also helped Tech Data understand stock availability for its customers and address issues related to 'improper holds' that were impacting working capital and disrupting Procurement and Order Management processes. Furthermore, Celonis enabled Tech Data to reduce its price change ratio by 27% in six months and achieve a 57% reduction in P2P cycle time in just a year. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Process Analytics

Application Infrastructure & Middleware - Data Visualization

Applicable Industries

Mining

Transportation

Applicable Functions

Logistics & Transportation

Procurement

Use Cases

Inventory Management

Time Sensitive Networking

Challenge

Tech Data, a leading technology distributor, merged with SYNNEX in September 2021 to become TD SYNNEX, the largest IT distributor in the world. With $60 billion in combined revenue and over 150,000 customers, the company needed to maintain high levels of operational excellence to serve its customers effectively in a rapidly evolving technology market. The company's role was to simplify the complexity of the IT industry for its customers and partners. However, the company faced challenges in adapting to the profound shifts impacting the IT industry, such as the transition from physical to cloud-based software distribution. Tech Data needed a platform that would provide the flexibility required to quickly embrace new technologies and consumption models. The company also needed to optimize its Procure-to-Pay, Order-to-Cash, and After-Sales Management processes to ensure customer satisfaction and reduce operational costs.

About Customer

Tech Data is a leading technology distributor that helps vendors and resellers bring cutting-edge technologies to the market. The company offers a wide range of technical and business support services, enabling customers to get the most out of technology products, solutions, and services. In September 2021, Tech Data merged with SYNNEX to become TD SYNNEX, the largest IT distributor in the world. The company has $60 billion in combined revenue and serves over 150,000 customers. TD SYNNEX is committed to maintaining high levels of operational excellence to effectively serve its customers in a rapidly evolving technology market.

Solution

Tech Data turned to Celonis, the market leader in Process Mining, to help simplify its process complexity and achieve operational excellence. After a three-month proof of concept, Tech Data adopted Celonis in May 2020. The platform provided comprehensive visibility into Tech Data's Procure-to-Pay, Order-to-Cash, and After-Sales Management processes, enabling the company to identify improvement opportunities that would have the most immediate impact on the business. With Celonis, Tech Data was able to record and visualize 40 million transactions, providing valuable insights into vendor performance and order ETAs. The platform also helped Tech Data understand stock availability for its customers and address issues related to 'improper holds' that were impacting working capital and disrupting Procurement and Order Management processes. Furthermore, Celonis enabled Tech Data to reduce its price change ratio by 27% in six months and achieve a 57% reduction in P2P cycle time in just a year.

Impact #1	The adoption of Celonis has significantly improved Tech Data's operational excellence. The platform has enabled the company to simplify its process complexity and quickly adapt to changes in the IT industry. With comprehensive visibility into its key processes, Tech Data has been able to identify and address improvement opportunities, ensuring customer satisfaction and reducing operational costs. The company has also been able to improve the accuracy of order ETAs and make better-informed procurement decisions. Furthermore, Celonis has helped Tech Data address issues related to stock availability and 'improper holds', thereby improving working capital and streamlining Procurement and Order Management processes. Looking ahead, Tech Data plans to further leverage Celonis to predict future outcomes based on current and historical data, which will help the company maintain its competitive edge in the industry.

Impact #1

The adoption of Celonis has significantly improved Tech Data's operational excellence. The platform has enabled the company to simplify its process complexity and quickly adapt to changes in the IT industry. With comprehensive visibility into its key processes, Tech Data has been able to identify and address improvement opportunities, ensuring customer satisfaction and reducing operational costs. The company has also been able to improve the accuracy of order ETAs and make better-informed procurement decisions. Furthermore, Celonis has helped Tech Data address issues related to stock availability and 'improper holds', thereby improving working capital and streamlining Procurement and Order Management processes. Looking ahead, Tech Data plans to further leverage Celonis to predict future outcomes based on current and historical data, which will help the company maintain its competitive edge in the industry.

Benefit #1	57% reduction in Procure-to-Pay total cycle time within a year
Benefit #2	27% reduction in price change ratio in 6 months
Benefit #3	20% increase in overall automation rate within a year

Benefit #1

57% reduction in Procure-to-Pay total cycle time within a year

Benefit #2

27% reduction in price change ratio in 6 months

Benefit #3

20% increase in overall automation rate within a year

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Overview

Tech Data's Journey to Operational Excellence with Celonis

Operational Impact

Quantitative Benefit