The FONACOT Success Story: Unlocking Efficiency through Process Automation

FEMSA Group

The FONACOT Success Story: Unlocking Efficiency through Process Automation

FONACOT provides loans to employees, which employers must withhold and report monthly through the FONACOT online portal. This process is cumbersome and slow, as it involves dealing with a large number of submissions, verifying them manually, and meeting multiple deadlines.

The objective of the project was to implement a Robotic Process Automation (RPA) solution, aimed at optimizing the submission of deductions and payments reported to the Workers' National Consumer Fund Institute of Mexico (FONACOT). The target was to significantly reduce the time, effort, and costs associated with verifying and reconciling loans granted to employees.

The Challenge

High Data Volume: Managing a large number of loans and withholdings across multiple units and subsidiaries.

Manual Verification: A time-consuming, error-prone process.

Compliance:Reports need to be submitted according to strict deadlines to avoid financial penalties.

Labor Costs: Processes were costly due to the significant time and human resources involved in data verification and reconciliation

The Solutions

After assessing the needs of the client, we implemented a customized RPA-based solution that automatized four core processes

Payment Submission: Automated generation of submissions for tracking loan deduction payments and account reconciliation.

Parallel Processing: Four simultaneous robots enabled data processing across various subsidiaries, significantly reducing processing times.

Report Generation: Automated generation and distribution of accounting and withholding reports for internal business units and subsidiaries.

Data Integration: Automated and seamless interfacing of SAP and FONACOT portals, enabling uploading/downloading of accounts, payment reconciliation, and report generation.

results

What we achieved

Our solution resulted in major improvement of key metrics claimed.

Process Time Reduction: Report generation and submission lead times were reduced from 7 to 2 business days

Error Reduction: The error rate in submitted information dropped from 20% to less than 1%.

Productivity Improvement: Time spent on manual verification fell 60%.

Cost Reduction: Significant reduction in operational costs, via the reduction of manual work and the minimization of costly compliance errors.

Scalability and Flexibility: Resolution of bottlenecks in handling new loans and subsidiaries and deployment of scalable and adaptable solutions.

Client Testimonial

"The automation of the FONACOT process has transformed our ability to manage loan deductions and comply with the Institute’s obligations. The RPA implementation has reduced processing time, improved data accuracy, and lowered operational costs. We are highly satisfied with the results and the flexibility the solution offers." — CFO, Major Business Group

Technologies Platform: Microsoft Azure

Technologies: Power Automate, Azure, .NET C#, SQL Server

Applications: FONACOT Portal, SAP 7.7

Project Duration: 4 months