Finance Cost Optimization Case Study

CLIENT: A $2B+ regional grocery retailer

The challenge

Experiencing cost savings pressures from private equity ownership, we were asked to benchmark their Finance organization to help reduce processing costs that were inflated due to declining transaction volumes and banner spin-offs.

Our approach

PwC Canada’s Retail Consulting Services conducted a retail specific finance benchmark which identified the significant opportunity areas within the Finance department and the estimated savings potential. A series of current state and future state workshops in the high potential processes were conducted to validate our assumptions, identify specific improvement recommendations, and begin the process of team buy-in. We then created a detailed roadmap sequencing the implementation of the recommendations to leverage near term savings opportunities and other related recommendations.

The recommendations were implemented over a 9 month period with initial focus on quick wins. PwC Canada’s Retail Consulting Services worked closely with the client’s Internal Audit department to insure that all redesigned processes were thoroughly documented and Sarbanes-Oxley compliant. A detailed span of control analysis was conducted to reconfigure the Finance organization for the interim period of staff reductions as well as the final organization after all recommendation were implemented.

The result

• $1.25 million in annualized labor savings (13% of the total Finance labor budget)
• Lower per-transaction cost through streamlined processes and minor technology enhancements
• Improved controls and lower risk through discrepancy reporting and risk based audits
• A more efficient and focused Finance management team