prepared for full ap automaton · 2019-12-04 · case study: siemens global shared services north...

May 7-9, 2017

Disney’s Yacht & Beach Club

Resorts®, Florida

How to Know if You’re Prepared for Full AP

Automaton

Who Are We?

Jess Scheer Continuing Education Manager, IOFM

Chris Carberry Senior Director Product Management

Who Are You? What Best Describes Your Current State of Automation?

• “We have no automation today”

• “We have some automation today.” (Scanning, ACH payments)

• “We’re considering additional automation.”

What’s Stopping You From Fully Automating?

• Budget and/or leadership commitment

• Burned by prior unsuccessful IT investments

• Fear of…

the financial investment (ROI)

changing the process

what we don’t know

Five ‘Best Practices’ For Automation Preparedness

Strategic

Alignment

Ownership &

Accountability

Process

Visualization

Measurement

& Controls

Identification

and selection

of enterprise’s

best interest

Clear and

consistently-

defined roles &

responsibilities

Change

Management

Frameworks

and models of

the entire end-

to-end process

Measurement

system to track

progress and

consequences

Communication

and training plan

for rollout and

beyond

Two ‘Worst Practice’ Stories

Where Did They Go Wrong?

Strategic

Alignment

Ownership &

Accountability

Process

Visualization

Measurement

& Controls

Change

Management

Siloed functions

prevent

successful

enterprise

adoption

Seeing the

whole process

would have

changed

approach and

results

Companies

only tracked

intended

results, not

unintended

consequences

Breakdown

between Sales

and Finance

doomed the

company

A single end-

to-end process

owner would

have identified

issues faster

Strategic Alignment Key Questions:

Why Are You Automating Procure to Pay?

What are the primary objectives?

Don’t just ask AP…

Would Procurement have the same answer?

Would the Controller have the same answer?

Would the CFO have the same answer

Would the Chief Compliance Officer have the same answer?

If not, where’s the disconnect?

Ownership & Accountability Key Questions:

Who Owns P2P?

Who Will Own the Automation Integration, Rollout and Management?

And, what does it meant to be the ‘owner’?







Process Visualization Key Questions:

Is everyone on the ‘same page’ in defining the steps of the process?

Can you ‘see’ the entire P2P process?

Do you know who is responsible and accountable for each step of the process?

Where are the knowledge gaps in the process?

And do they need to be filled before proceeding?







Measurement & Controls

Key Questions:

Do you know what to measure?

Do you know what activities align to the strategic goal of automation?

Do you know what measures will best help you manage those activities?

Do you know who will own the measures?

Do you know who will define the measures, collect the data, store the data, etc.?

Do you know what controls will monitor progress and unintended consequences?







Change Management

Key Questions:

How will the change be communicated; how will the communication be tailored?

Based on the knowledge gaps, what training is necessary?

Who will ‘own’ ongoing communication and training process — HR or AP or

Procurement?







Are You Prepared?

The future of AP is pointing toward greater automation to meet:

Today’s Needs

• Higher efficiency (lower costs)

• Higher effectiveness (higher quality)

Tomorrow’s Needs

• Risk identification and mitigation (OFAC, unclaimed property, etc.)

• Cash management and forecasting (extended credit terms)

• Support of procurement and the broader business (claims processing)

Case Study: Siemens Global Shared Services North America

2008 2015

Siemens Business Unit Divisions 26 50+

Invoices Processed (annually) 1.4 million 1.8+ million

Global Supplier Base 63,000 100,000+

Siemens Shared Services AP Headcount 50% Fewer FTEs

(Enabling reallocation of half the

team to higher value-added work)

Electronic Invoicing Journey

Case Study: The ‘What’ and ‘How’

Objectives

• Reduce AP’s cost and improve quality

• Exceed Siemens’ 22% G&A cost reduction target for AP … within one year.

Goals

• 80% electronic receipt of invoices

• 95% e-vouchering / posting rate of an electronic invoice

Strategies

• Aggressively targeted high-volume suppliers (6% of vendors accounts for 79% of invoices)

• Targeted problematic, poor quality paper invoice suppliers

• Established a Vendor Adoption Committee with representatives from all business units

• Changed the Bill To Address on the PO to reflect the electronic submission method

• Established and promoted e-invoicing as ‘the way of doing business with Siemens’

• Provided procurement groups with standard communication and quick training guides for suppliers

• Required by contract in Terms and Conditions that all new vendors submit invoices electronically

Case Study: PayBox’s Role

50

Companies

SAP

50

Companies

SAP

50 Business

Units

SAP

EZ-AP

Vendor

Invoice

Data Store

Web Entry,

PO Flip &

Spreadsheet

Invoices

Direct

Integration

Invoices

(EDI or XML)

PAYBOX

Solution

Vendor Self

Service Inquiry

Validation,

Increased

eVoucher

success rate

Direct

integration

Scan for Paper

invoices

No more paper

All invoices converted to one standard

New PO/PO Change

Invoice

Suppliers

100,000+

Workflow 16+ ERPs Paper

Invoices

Case Study: Lessons Learned Internal Support

• Procurement support is crucial to adopt and sell e-invoicing • Executive Sponsorship is necessary at business units level in Shared Services • Encourage e-invoicing mandate or define criteria for e-invoicing process before go live with

internal departments

Supplier On-boarding • Accurate contact information is key for recruiting suppliers • Target 3 types: high volume, high dollar value, and traditional ‘problematic’ suppliers • Training & Support must be available, including on demand • Prepare quick guides using screen prints • Realize that behavior change is hard • Make service free to suppliers • Sell tool to suppliers – explain benefits • Allow different methods of electronic invoice submission • Ensure dedicated helpdesk and set expectations on supplier support • Self registration to e-invoicing portal for suppliers is critical

Straight Through ‘Touchless’ Processing • Updated PO data must be available in the portal to enable PO flip • E-invoice with bad information is almost as bad as a paper invoice • Encourage PO flip • Establish P2P end to end true EDI process if possible • Ensure up to date vendor master data to ensure match with vendor

Case Study: The ‘What’ and ‘How’

Objectives • Reduce AP’s cost and improve quality

• Exceed Siemens’ 22% G&A cost reduction target for AP … within one year.

Goals • 80% electronic receipt of invoices

• 95% e-vouchering / posting rate of an electronic invoice

Strategies • Aggressively targeted high-volume suppliers (6% of vendors accounts for 79% of invoices)

• Targeted problematic, poor quality paper invoice suppliers

• Established a Vendor Adoption Committee with representatives from all business units

• Changed the Bill To Address on the PO to reflect the electronic submission method

• Established and promoted e-invoicing as ‘the way of doing business with Siemens’

• Provided procurement groups with standard communication and quick training guides for suppliers

• Required by contract in Terms and Conditions that all new vendors submit invoices electronically

Case Study: What’s Next?

19

Increase and improve Web AP Inquiry

No more e-mails & fewer phone calls

All inquiries must submit through web portal:

• External/Supplier Inquiries

• Internal/Employee Inquiries

Global Vendor on Boarding Portal

• Data input from Supplier

• Reduction in manual effort

• Improved data accuracy

• Quicker PO placement

• Reduced payment errors

• Central repository of Supplier data

Invoice Submission

• Up front invoice validation

Early Payment Discounts

• Projects in place to increase supplier ability to

take early payment discounts

Customer Service AP Inquiries / Year

0

20,000

40,000

60,000

80,000

Sept 09 Sept 10 Sept 11 Sept 12 Sept 13 Sept 14 Sept 15

Inquiries by Calls

Inquiries by Emails

IOL Web Inquiries

Total Inquiries

IOL Website Hits

Sept 09 Sept 10 Sept 11 Sept 12 Sept 13 Sept 14 Sept 15

Inquiries by Calls 7,260 4,458 2,312 2,411 1,854 1,338 1,477

Inquiries by Emails 24,510 10,325 899 1,043 761 301 497

IOL Web Inquiries 1,664 6,209 5,102 4,345 4,647 5,296

Total Inquiries 31,770 16,447 9,420 8,556 6,960 6,286 7,270

IOL Website Hits 39,796 53,599 74,488 75,858 76,144 75,199 74,791

Case Study: Examples of Siemens’s Automaton Preparedness

20

Strategic

Alignment

Ownership &

Accountability

Process

Visualization

Measurement

& Controls

Change

Management

Lesson Learned:

Each business unit

that joined the AP

Shared Service

group was offered

on-demand

training and

support

Example KPIs • Number of

Invoices

• Number of invoices submitted electronically

• Number of invoices processed electronically from start to finish

Questions?

21

Jess Scheer Continuing Education Manager, IOFM

[email protected]

404-791-1489

Robert Gilbert VP of Sales

[email protected]

954-510-3756

prepared for full ap automaton · 2019-12-04 · case study: siemens global shared services north...

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