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The C-Suite Dispatch: Steering Clear
The C-Suite Dispatch: Steering Clear

August 24, 2022

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The marketplace can change unexpectedly due to factors we can’t foresee or control. An onslaught of challenges in these past years - an ongoing pandemic, global supply chain disruptions, and inflation running at a 40-year high has obscured future outlooks for business leaders. Add to the fact that most companies run their processes over hundreds of siloed systems that don’t play nicely together - complexity builds up leading to the incubation of hidden inefficiencies across people, processes and technology. Visibility into the future becomes even more muddled for business leaders!

It’s crucial businesses be able to quickly fix process problems - including the ones they can’t see! An impetus therein lies in adaptation, placing the onus on leaders to steer their ships clear of a disruption to a blue ocean - Navigation is vital and Celonis becomes your nautical telescope.

In a modernizing business world, the roles of C-Suite executives are evolving. Responsibilities have taken an upswing. The focus and industry consensus is channelled towards driving digital change, nurturing talent and driving enterprise innovation. To summarize Mckinsey’s CFO mandate, we are living in an uncertain, volatile time; the magnitude of change is broad. Many businesses are doing reviews of their business models and finance leaders need to accelerate the digitisation of enterprise-wide finance functions.

COVID-19 -> Recession and Inflation

We are still fighting for normalcy in the end stages of the pandemic. Enterprises have turned a new leaf in altering their ways of dealing with disruptions. What is set in stone for leaders at the helm is to constantly look for measures to bolster defences, and ready countermeasures to proactively resist and manoeuvre impending deterrents. On the economic horizon, the cogwheels of disruption are in play - we are now in a recessionary slew coupled with inflation that is plaguing growth markets. The daily hits us with news about entities capsizing in light of this. Enterprises should take a step back and ask themselves - Do we have what it takes to weather this storm? Does the modern-day CXO have complete visibility of an enterprise to wade through this economic storm?

Stave off inflation using Celonis!

In an inflationary economic scenario, the rise in the price of materials is commonplace. The domino effect sets in - this leads to a decline in demand causing material shortages, and decreasing unit margins. To gain a competitive edge, improving the bottom line is a necessity. From a procurement point of view, excess spending must be curbed.

Every externality that contributes to the global price rise cannot be influenced, but having effective cost controls can put an organization on the ‘bright’ side of an economic event horizon. This is where leaders assert themselves - prioritizing controllables and setting up procurement command centres. Harnessing event log data, Celonis offers a bird’s eye view of your critical processes. The ‘mind’ that orchestrates elements across people, process and technology to accelerate cost curbs. A novel concept, here’s how:

Our inflation monitor lays out integral KPIs tracking material price indices, shortages and associated unit margins. These insights pose as indicators to gauge financial performance. AI and ML algorithms intelligently spot inefficiencies affecting procurement and systematically prioritizes the top cost reduction opportunities based on potential benefits. Most crucially, Celonis points out the gaps and problem areas that companies didn’t even know they had.

Contracts cater to mutually beneficial relationships between buyers and suppliers, there is an incentive for a buying organization to double down on them to avail discounts on material purchases. Upon investigation, Celonis displays materials affected by inflation, categorizing them by the priority of need and their days of coverage - showing critical restocking priorities. For inflated prices, reducing their cost of purchase is essential - the absence of vendor contracts and contract price leakages lead to a rise in purchasing spend if left unchecked.

Celonis not only unravels purchase orders without contracts and with contract price leakages, but it also goes one step further in actionizing on them to improve margins. For orders without a contract, spot buying teams are automatically tasked to avail discounts. Concurrently, in a situation where the order price is greater than the contracted price, the prices are automatically updated in line with set contracts. By prioritizing and acting on critical material items, leaders can ensure the business is able to navigate these turbulent waters, stay efficient and thereby remain protected from the impact of unprecedented global events. For a quick example, take a look at our inflation demo here to find out more!

About the Author

Siddharth works as a ‘Customer Value Architect’ at Celonis aiding global organizations in ensuring their business processes run at maximum execution capacity. He thrives on being a conduit between the brand and its customers by making operational activities efficient and identifying automation opportunities throughout the value chain. He is a passionate advocate of utilizing process mining in solving the next generation of business problems. Siddharth believes learning is maximized when a community of like-minded people unite for ideas.


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Celonis is the global leader in execution management. The Celonis Execution Management System provides companies a modern way to run their business processes entirely on data and intelligence. We pioneered the process mining category 10 years ago when we first developed the ability to automatically X-ray processes and find inefficiencies.

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