Moving Up The Invoice Maturity Curve

Moving Up The Invoice Maturity Curve

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  Moving Up theInvoice Maturity Curve: Laying the Foundation for Total Invoice Management Chris Rauen, Solutions Marketing Manager, Ariba Vicky Pafk, Senior Director of Shared Services, Waste Management Ulrik Philipson, Vice President , Global Supply Management, American Express © 2013 Ariba, Inc. All rights reserved.
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  #AribaLIVE A-HA* Moment © 2013Ariba, Inc. All rights reserved. The invoice is here. No requester. When to pay? Wait for the phone call. * Haiku Automation
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  #AribaLIVE The Path toTouchless
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  #AribaLIVE The Business Casefor Success It’s as easy as 1+2+3+4 = $10M /$1B in Spend © 2013 Ariba, Inc. All rights reserved. CHALLENGE OPPORTUNITY 1. Process 60-80% cost take out – or about $1M per $1B in spend for average to large Payables and Procurement organizations - Billentis 2. Discount $2M+ in discount savings for every $1B in discountable spend – Aberdeen,Ariba 3. Working Capital $2.7 million in working capital impact for every $1 billion per day of improvement of DPO, DSO, DIO 4. Compliance $4.6M in contract leakage savings for every $1B in spend under contract – Hackett “4-for-1” “1-for-1” “2-for-1” “3-for-1”
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  #AribaLIVE Waste Management • Revenues- $13.65B • 44,000 Employees (North America) • Decentralized – 1,250 operating locations • Vendor Master – 105k Active Vendors in 2012 • Shared Services Center – Houston, TX © 2013 Ariba, Inc. All rights reserved. North America's leading provider of integrated environmental solutions Accounts Payable Card Services Cash Applications Fixed Assets HR/Payroll Processing Technology Solutions www.thinkgreen.com
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  #AribaLIVE Business Challenges • Paper-intensiveinvoice process AP – 60k paper invoices per month PCard – 100k pcard invoices/receipts per month • Vendor additions – not controlled by Procurement • No visibility into contract vs. invoiced pricing • Stand-alone PO system at Areas, not integrated with financials • 197 AP personnel across company © 2013 Ariba, Inc. All rights reserved.
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  #AribaLIVE Procure-to-Pay (P2P) Project ©2013 Ariba, Inc. All rights reserved. Upstream Technology Downstream Technology Source Procure Payment and Settle Source, Contract & Manage Procure Pay and Settlement Procure-to-Pay Spend Analysis Contract & Supplier Mgmt Supplier Bidding & Selection Catalogs and Requisition Receive Good and Service Supplier Selection & Purchase Invoice Receipt Settlement Invoice Reconcile • Conduct Spend Analysis • Understand Demand • Assess the Market • Develop Strategy • Negotiate and execute agreements • Develop implementation plan • Deploy strategic sourcing and Supplier contract management software • United Nations Standard Products and Services Code (UNSPSC) categories • Internal and external catalogs • HR hierarchy based approvals • Hands free purchase order processing for pre-sourced items • Change order control and tracking • Automated interfaces to maintenance systems (parts matching) • Receiving of goods and services • Third party EIPP vendor for invoice handling • Three way matching for invoice approval • Standard payment method for each supplier • Improved cash forecasting In scope for Procure-to-Pay project This project adds the “Procure” portion of the “Downstream Technology” process via PS e-Procurement, and also enhances the “Pay and Settlement” portion of the process. 7
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  #AribaLIVE Ariba/Procure to PayImplementation • Ariba Procurement Content Ariba Network Membership Invoice/PO Automation © 2013 Ariba, Inc. All rights reserved. Invoice Professional Invoice Conversion Services (ICS) • Rollout Total of 17 Market Areas (US/Canada) + Corporate May 2012 – Pilot in Pacific NW/BC Area February 2013 – 4 Areas ‘live’ 250 Suppliers Enabled (29 Catalogs) to date
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  #AribaLIVE P2P PO InvoiceProcess © 2013 Ariba, Inc. All rights reserved.
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  #AribaLIVE The Path toTouchless © 2013 Ariba, Inc. All rights reserved. WM - 2014 WM - 2012 70% 5% 10% 25% 5% 35% 50%
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  #AribaLIVE Project Benefits • Reducedprocurement leakage • Strategic sourcing / managed vendor master • Productivity savings • Spend analytics, supplier leverage • Enhanced SOX controls © 2013 Ariba, Inc. All rights reserved. $20M-30M Annual Savings
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  #AribaLIVE Lessons Learned • VendorMaster clean-up! • Document end-to-end process for Supplier Enablement – AP and Procurement • Supplier training / messaging Consequences for non-compliance? • Requestor training / messaging • Consequences for non-compliance? • Know your user demographics © 2013 Ariba, Inc. All rights reserved.
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  #AribaLIVE American Express Overview • Foundedover 160 years ago in 1850 • Considered one of the world’s best known and valuable brands • No. 95 on the Fortune 500 list • Revenue of $32 bill.; 63,500 employees • Headquartered in New York; main Shared Services center in Gurgaon, India © 2013 Ariba, Inc. All rights reserved. Ulrik Philipson • Joined American Express in 2010 • Responsible for the global deployment of Procure-to-Pay platform • Based in New York office with teams in Phoenix, Arizona, and Gurgaon, India • Prior experience as management consultant in procurement space
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  Questions? © 2013 Ariba,Inc. All rights reserved.