Applying the Principles of Lean Management on Taxation Processes for a Global Biotech Major

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Client Challenge

The client was into agri-input products attracting multiple types of direct and indirect taxes. The client undertook a BPM (Business Process Management) initiative to be implemented in all the business processes across the organization. Tax process was a pilot project for initiating the BPM exercise. Although the company had implemented SAP ECC 6.0, there were certain inefficiencies in the tax processes that led to delays, penalties, non-compliance and non-value added activities


Our Approach

To help the client implement lean management practices in its taxation process, UC STRATEGY adopted the following approach:

  • Developed a detailed understanding of the key issues and pain points in the ‘As-Is’ processes through discussions with all the stakeholders
  • Applied principles of lean management to unearth the ‘waste’ in the process:
    • Value Stream Analysis: Classified activities as value added and non-value added (waste)
    • Root Cause Analysis: Used a fish-bone analysis, identified the root causes for issues
    • Voice of Customer (VOC): Captured key pain points and issues by the stakeholders
  • Defined and validated future state with process owners


Our Impact

UC STRATEGY helped the client define the BPM template and standards for global implementation. The client was able to realise a saving of ~ 25 man-days annually, by reducing 20 – 25% of the activities, which were found to be non-value added, facilitating timely payment of tax liability and avoidance of any penalty. The client also received a recommended policy change in inter-company transactions, which would enable the client to claim a tax credit and implementation of CIN module in SAP.

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