implementing the right solution - michiganbta · the chasm technology lifecycle market is in the...
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Expense ManagementExpense ManagementImplementing the Right SolutionImplementing the Right Solution
Brian HullingerGelco Expense Management
September 7th 2006
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Managing Travel Costs Becoming a Higher PriorityManaging Travel Costs Becoming a Higher Priority
Travel expenses are high-profile targetsfor control and compliance
September 2005 / 2006
Business travel costs on the upswingwith no change in sight
Information collection and visibility are the barriers to improvement
Process complexity leads to increased cost and decreased productivity
On average an T&E expenses account for 8% - 10% of total operating expenses
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And It Touches EveryoneAnd It Touches Everyone……
“I spend too much time on expense reports!”
“I don’t like keeping track of my receipts.”
“I want my money back more quickly.”
“I need accurate data more quickly!”
“I need visibility to where the money
is going”
“I need a process I can trust. I have more to
worry about than T&E”
“I must hit my reporting deadlines.”
“I need controls I can enforce!”
“I need to make the process
easier!”
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And ThereAnd There’’s a Greater Sense of Urgency Todays a Greater Sense of Urgency Today
Sarbanes-Oxley
Fraud Growth
Employee Productivity
Business Standardization
Management Oversight/Information
Cost Control/Compliance
“I need accurate data more quickly!”
“I must hit my reporting deadlines.”
“I need controls I can enforce!”
“I need accurate data more quickly”
“I need a system I can trust. I have more to worry
about than T&E”
“I spend too much time on expense reports!”
“I don’t like keeping track of my receipts.”
“I want my money back more quickly.”
“I need visibility to where the money
is going.”
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Market Is in the TornadoMarket Is in the Tornado……
Technology Lifecycle
LaggardsLateMajority
EarlyMajority
Early AdoptersInnovators
The Chasm
eFolioOnline Booking
ExpenseManagement
T&ECards
TravelManagement
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Technology LifecycleThe Chasm
Market Is in the TornadoMarket Is in the Tornado……
30%+ CAGR over last 5 years15-40% penetration North America 5-10% penetration worldwide
Market dynamics have evolvedFinancial transaction scrutiny Business travel costs increasingWeb-technologies economies Technologies driving “touchless”SaaS/outsourcing perceptions Global business standardization
Dominated by a few players
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Proven Business ResultsProven Business Results
Best in class companies…
Reduced average cycle time from 15+ days to 4 days
Reduced % of T&E expenses out of policy from 20% down to 12%
Reduced cost to manually process an expense by up to 92% with anautomated solution
META Group Research – Average 5% annual savings from improved vendor negotiations.
META Group Research - Average 1%-3% cost savings through cash management from maximizing corporate card rebates and managing cash float.
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Minimalists
Technology LifecycleThe Chasm
Buyer Trends EmergingBuyer Trends Emerging……
Policy Compliance
Standardization
Productivity
Cost Reduction
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Types of solutionsTypes of solutions
ERP/Software (Oracle, SAP)
Bank (Wells Fargo, US Bank, BofA)
Corporate card (American Express, Diners)
ASP(Concur, Necho)
BSP(Gelco, Interplex)
Other (In-house, off the shelf)
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Expense Management Best Practices Expense Management Best Practices –– MethodologyMethodology
Automate non-core processes
Integrate a corporate card program
Develop a receipt management strategy
Implement sample audits
Understand your spend
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Automate NonAutomate Non--Core Processes Core Processes
Reduce expense report preparation time by 80%*
Standardize process across organization
Eliminate manual data entry
Reduce reconciliation headaches
Proactive travel policy enforcement
Automate routing & approval
Up to 85% reduction in expense report cycle time from 15+ days down to 4*
*
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Integrate Corporate Card ProgramIntegrate Corporate Card Program
76% of “Best in Class” companies use a corporate card program for T&E
Improved convenience for employees (Automated pre-population of corporate card expenses)
Eliminate cash advances and use of personal cards
Improve spend visibility / compliance
Better manage cash flow
Mitigate risk
Rebates and incentives
Comprehensive card program
integration – up to 40%
increase in rebates and
travel savings
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Develop Receipt Management StrategyDevelop Receipt Management Strategy
Electronic imaging and receipt storage
IRS receipt compliance
Sarbanes-Oxley controls
Eliminate paper and storage requirements
Simplify matching of expense report to receipts
Streamline VAT reporting and reclamation
Online retrieval of expense records
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Implement Sample Audit Implement Sample Audit
Consistent policy enforcement
Visibility to policy compliance
Identifies exceptions for manual review
Selects sample for control audits
Allows immediate payment for compliant reports
Supports work flow distribution
Make employees and managers accountable
Identifies training opportunities
On average approximately 20% of T&E spend is out
of policy
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Understand Your Spend Understand Your Spend
Spend visibility is primary benefit of EMA
Analyze granular data (How and where are you spending?)
Monitor and improve compliance
Provide decision makers with a single point of access to real time expense data
Improve vendor negotiations
Use data to reduce overall travel expenditures and improve overall program performance
Average 5% annual
savings from improved vendor
negotiations.
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Who Should Be InvolvedWho Should Be Involved
Finance/Accounting/AP manager
IT
Sales Management
HR
Procurement
Travel Manager
Corporate Card Manager
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Other Solution ConsiderationsOther Solution Considerations
Involve internal audit on necessary controls
Ongoing product/service enhancements
Longevity in the industry
Client references/Industry experience
Client service (local/offshore/availability)
Implementation expertise (timeline/resource requirements)
Change management methodology
Value for the investment
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Best Practice Implementation ProcessBest Practice Implementation Process
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How you can be How you can be ““Best in ClassBest in Class””
Develop well structured and well communicated T&E policy
Understand your spending and patterns through granular data analysis
Invest in automated tools to simplify and improve efficiency of processes
Consistently measure and monitor performance and compliance
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Expense Management TrendsExpense Management Trends……
Continued outsourcing of non-core functions
Opportunities for cost savings
Global business standardization
Ease of use for the traveler
Greater visibility to spending – better management
Leveraging key technologies – e.g. mobile devices, data improvements, card integrations
Paperless society
Process reengineering
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Thank You!Thank You!
If you are interested in additional information please visit www.gelcoexpense.com or
phone 1-866-964-7500