The community for leaders in finance shared services
18th June 2008 - 18th June 2008
The P2P process is one of the most costly parts of the finance function. It doesn't need to be. The gulf between world class finance organisations and the rest is staggering. Per transaction we are talking times 30. So what are companies doing to drive out the cost and introduce process efficiencies? Is there a magic formula, or do the nuances of your business mean you need to take a different approach?
If realising massive savings through driving first time match to over 85% is a priority for you, if attaining touchless processing is your goal, and if having complete control and visibility over your liabilities so you can optimise your working capital is your vision, then this two day conference is a must. This event will help you:
08.30 Registration and Morning Coffee
09.00 Chair’s Overview
What are these two days about? We are all striving towards clean and efficient processes so costs are low and decisions can be made on meaningful data. Once processes are clean, we can become touchless as a rule. And with automation and control, comes the greater good – working capital optimisation. This end game turns finance from a cost into a value adding function, driving up profits and impacting shareholder value. These two days are geared to show you the ways in which this can be attained.
Susie West Conference Chair and Director
09.30 Can you Run a World Class P2P Function Off Multiple Systems?
Organisations aiming to be a FTSE 100 company are looking hard at their infrastructure. One major question resonates with many a senior management team – can you be a FTSE 100 co and run off multiple systems and legacy systems? Is there no alternative but to put in an ERP (and a single instance at that) to support all the supporting functions/all businesses; help drive process compliancy; enhance reporting; and free up local finance to support and infl uence the business in commercial decisions, and really add value. Carphone Warehouse has a European Shared Serivces Centre, but the whole P2P operation is run off a plethora of systems. In this session Steve Luck will talk frankly about the gap between pre and post single instance, looking in particular at P2P process consistency, resilience, control, scalability, visibility and stability for future growth and acquisitions. He will talk about the possible consequences of doing nothing and what ramifications this one change has across the P2P process, the business and the shareholder community.
Steve Luck - Head of Shared Services Development
10.15 Morning Coffee
10.45 Attaining 300% Productivity Without Putting P2P in the typical centralised Shared Services Model – Using Systems and Processes to Enhance Performance
If you want to tone up your P2P process successfully, ask yourself: is it essential to centralise? SCA Hygiene has done something extraordinary. Like everyone else, one of their main KPIs is number of invoices processed per FTE. With the aim to drive this up, they looked at 2 options: the typical shared service model, located in central Europe; and a ‘virtual’ shared services model, based around a hub set up. One would take 5 years to reap a return. The other 18 months. Both offered similar results in terms of productivity, driving invoices per FTE from 9,000 pa to 25,000, and in some cases 35,000. Both offered potential cost savings of 50%. However, for the lower risk, hub option to work, SCA recognised the absolute importance of standard systems, automation and processes. In this session Thomas Wust and Martin Riemenschneider will explain how they decided on the hub approach, the systems and process model they have in place, the impressive results attained so far and why they do not believe getting to 100% PO is worth the cost.
Thomas Wust - CFO Germany Austria and Switzerland
Martin Riemenschneider - Virtual Accounts Payable Manager Europe
11.30 No User Compliancy, No First Time Match,No Chance of Reaching Touchless. How HM Prison Service took 26% PO compliancy to 86% in just 12 Months
This really is an amazing story. Nearly everyone will tell you, don’t bother touching automation tools until your process is clean. Automating a messy process will take away the paper but not the pain. HMPS have spent the last 12 months turning around their PO compliancy from a low 26% to an impressive 86% through applying a combination of tactics, tools and methodologies.
In this session they will be illustrating what they did to change behaviour, how they got users bought into to attaining process success, what the first time match and cost per invoice are as a direct result, where they are now going with their process automation phase, and how they plan on reaching the straight through processing target of 40%.
Stephen Moore - Head of Process Improvement
HM PRISON SERVICE
12.15 Speaker Clinic
An opportunity to ask your questions face to face with this morning’s Speakers in small groups and really get the detail you are after.
14.00 The Secrets to Successfully Forcing PO Compliancy Behaviour on Your Buyers
How much does it cost for someone in accounts payable to process a non PO invoice? Where does the responsibility lie for ensuring a PO is quoted on an invoice? Can you legitimately chase the Supplier for the PO if they were never issued one by the Buyer? Laziness at the front end pushes the costs all the way to Accounts Payable. It’s estimated that a non PO invoices can cost up to 15 times a good invoice. So, how do you start forcing compliant behaviour, especially within a business which has a complex organisational model, multiple systems, over 100,000 FTEs, multiple processes, and hundreds of locations? Cargill is such a company. In 2006, invoice rework caused by non-PO invoices stood at 90%. A strategy was quickly sought to turn this costly, inefficient process around. 2 years on, PO compliancy has soared, and as a result €1.5 million has been saved and productivity has doubled. In this session Gordon Wright will talk about how Cargill understood the baseline process and which BUs were troublesome, and what they did to do to enforce the necessary change.
Gordon Wright - European P2P Process Owner
14.45 How Do you Migrate 11 European Countries into an SSC and Move to Single SAP in 24 months AND Drive Your First Time Match from 54% to 85%?
The $8 billion turn over multinational O-I (Owens-Illinois) has seen a significant improvement in their first time match rate for MM (inventory) invoices. With a total volume of almost 400,000, focusing hard on taking the perfect 3 way match from 54% to 85% has had a very beneficial impact on the P2P function. And all this transpired, despite the massive organisational change of moving finance to shared services and on to a single SAP platform. So how was all this possible? One man who can take a lot of credit for these statistics is Rene Leenders, Lean Six Sigma Black Belt and shared services expert. During this session he will illustrate what had to happen to improve process compliancy, and how this was possible during a climate of change.
Rene Leenders - Lean Six Sigma Black Belt
15.30 Afternoon Tea
15.45 Question Time
Automation Vs Electronic – Which Solution Best Serves Your Supplier Base, Process,Needs and Goals
When your processes are clean, you may find yourself at a fork in the road: do you automate your invoices or take the bigger leap and require suppliers to send you electronic data? Pros and cons exist for both in theory. But in application, which one really is the best investment for you? This session will focus on mastering supplier enrolment to reach 80% electronic and what to look out for when going electronic; and the insource/outsource options available for scanning and OCR. For anyone approaching the fork in the road, this session is a must!
16.30 Which one makes more sense – owning or outsourcing your OCR process?
What makes sense? Owning OCR software and scanners and operating this function internally? Or outsourcing receipt, scan and data capture to the experts? What are the deciding factors which infl uence a smart decision? This was a no-brainer decision to take for Thames Water. In this session John Macklin will illustrate what their key requirements were and why; how they decided on their solution, key success factors from running the project; and the net savings realised as a result. Two years on, John has 5 key learnings which he will share with you – great advice for anyone seriously looking at the outsource-scanning & OCR option.
John Macklin - P2P Operations Manager Supply Chain
17.15 Speaker Clinic
17.45 Chair’s Close
09.00 Chair’s Overview
Today’s focus is looking at what you do with a clean process.The pace at which you move to Lights Out is yours to decide, and how you get there depends on which solution you opt for. But once you’re in a place where there is a complete and accurate view of cash flow and commitments of your business, you can take your finance function into a level of value based finance realised through dynamic discounting and working capital management.
ATTAINING TOUCHLESS PROCESSING
09.15 Elegantly Moving AP to Central Europe though Establishing a Touchless Process First
If you are wanting to attain touchless invoicing or if you are considering moving AP to near shore, this session will prove invaluable. DSG International runs a world class AP operation. Out of the 265,000 invoices received, over 80% are electronic and 80% of these are touchless. This means 170,000 out of 265,000 invoices are truly system to system, touchless, straight through. And on top of this, because the AP SSC is based in Brno, Czech Republic, the manual component of this very efficient process is low cost. In this session, Ian Duffield, who was instrumental to this project, will illustrate what happened to a) ensure an elegant transition from the UK to Near Shore and b) what they did to attain touchless for the majority of their invoices.
Ian Duffield - UK Finance Manager Finance Operations and AP
10.00 The Difference A Global P2P Operation Really Makes
If there is one company who can
a) build its own e-invoicing solution and
b) motivate all suppliers to use it, it’s Microsoft.
In 2005 Microsoft began its OneFinance programme to reduce the global cost of transaction processing, move towards world-class, leverage the scale of trading relationships globally, and standardise global processes, systems & tools. 3 fundamental pillars of this global organisation were:
1/ to expand and stabilise shared services
2/ to establish a BPO relationship with Accenture and
3/ to eliminate invoices through a pure electronic data flow.
In this session Jodi Ford, Senior Manager, Procure to Pay Operations, will talk about: how they created this global organisation; and the differences this has already made to transactions costs, control and purchasing power. But significantly she will be talking about the home grown e-invoicing module they have used in North America to attain 99% electronic, and what suite of tools they are using globally to automate high volumes of transactions wing to wing. This is a crucial session for anyone seeking to automate the entire P2P process for almost every single transaction.
Jodi Ford - Senior Manager Procure to Pay Operations
10.45 Morning Coffee
11.15 Be Metric Smart - Intelligently Using The Right Information to Drive Electronic P2P
In order for any organisation, or anybody to know where they want to go, they need to start with figuring out where they are. Baselining is common sense, but even today P2P organisations don’t always measure what needs to be measured, or don’t measure what is measured a) accurately or b) meaningfully. To know the state of your business at any time, an organisation should be able to see weaknesses and strengths, blocks and freeflows at the touch of a button. In a production line like P2P, measuring, KPIs, reporting and meaningful interpretation should all be second nature. But often it’s not! TeliaSonera process 1 million invoices in Europe. Before 2006 these transactions followed multiple processes over multiple systems. There was very little like-for-like activity within P2P. TeliaSonera then initiated a Metric Programme to assess the decentralised, non-standardised P2P function of 110 people. The results? TeliaSonera has almost made the complete move to one system, one process, and one process owner. In this presentation Allan Maartensen talks candidly about where they were, what the metrics programme actually told them, where they are today in terms of e-invoicing and 1st time match rates, how they are working better with sourcing and how they are on target for reaching 80% PO compliancy by 2009.
Allan Maartensen - Global Process Manager Accounts Payable
12.00 Speaker Clinic
13.45 Challenging the Need For An Invoice - Paying 8,700 Suppliers Through an ERS Process
Self Bill Invoicing, or ERS, is not a new concept. But very few organisations have mastered it as much as Ford. Talk to many P2P organisations and they may be considering ERS for a slither of suppliers. But talk to Ford and they will tell you that over 90% of production transactions, (60% of their 500,000 European invoices), are self billed to 8,700 suppliers. The benefits are significant - the receipt note corresponds with an impeccably kept pricing table, triggering an accurate self bill. Exceptions are at a minimum, and when they do exist, it’s the responsibility of the Supplier to fix. But there are significant considerations to take into account, especially around supply chain knowledge and source of goods so relevant tax amounts are quoted. In this session Jo Fitzpatrick will be talking about how ERS on this scale was made possible, the critical success factors, the key considerations, and whether ERS is the best solution for non production invoices.
Jo Fitzpatrick - Manager Transactional Accounting
THE FORD MOTOR COMPANY
14.30 Afternoon Tea
15.00 Wing to Wing Electronic Processing - Enabling Early Payment Discounting
In 2007 Sealed Air selected a vendor which would enable the entire Purchase to Pay dialogue between Supplier and Buyer to be automated and tracked. POs are issued and acknowledged, ASNs delivered, GRNs booked in, invoices sent, and remittance notes sent. The end result is twofold: 1/ net savings are realised through clean end to end process efficiencies and 2/ a Discount Manager feature maximizes discount capture. With 1000 vendors in scope in the US and $1 billion spend, a 1% discount on just a tenth of this spend offers savings of $1 million. In this session Roger Zouein and Steve Froelich will illustrate how the process works, expected benefits, the critical success factors, and how they are preparing for phase 2: Europe.
Roger Zouein Director - eBusiness Solutions Supply Chain
Stephen Froelich - Controller AP/AR Europe
15.45 Optimising Working Capital to Maximise the Cash Result for your Shareholders
The P2P process plays a massive role in determining what decisions should be made by the business and when. However, many organisations are so busy focusing on the consolidation and standardisation of P2P, they lose sight of the end game. If a company looks at the possible cash deterioration that comes from mis-management of working capital, the daily amount can be measured in £ millions. Fixing this can easily eclipse any P2P process cost saving exercise. In January 2006 Cable & Wireless recognised that they were burning £1m of cash every day through not focusing on working capital. Having only acquired their largest competitor in the UK, Energis, 2 months earlier there was also a programme of integration, rationalisation and transformation to ensure an efficient and effective shared services environment. To turn this deterioration into a positive Raj Patel, Jennifer Pinney and the team began a programme to: integrate the Payables functions, rationalise and transform the team, off-shore the transactional elements whilst ensuring process compliancy; maintaining a strong control environment, standardising the process; and establishing tools so that monies shifting in and out from customers to suppliers is accurate, managed and optimised. In this session Raj Patel and Jennifer Pinney will talk about what they did to transform a P2P function and process from a cost into a remarkable value adding function.
Raj Patel - Head of Cash and Working Capital
Jennifer Pinney - P2P Manager
CABLE & WIRELESS Europe Asia & US
16.30 Speaker Clinic
17.00 Chair’s Summation and Close
09.30 – 12.30 Learning Lab A - TONING UP P2P
Toning Up Wing To Wing P2P Through Value Stream Mapping - Preparing the Process For Touchless
FACT: Touchless processing can ONLY be achieved if the data on your invoice is accurate and complete. So how is this achieved? How do you start mapping out your current processes efficiently, to be able to identify the problems and their roots, find solutions to fix them, and end up with a process which is clean and ready to move to electronic?
At GE David Faulkner, Global Head Buy To Pay is applying a more efficient, intuitive version of Six Sigma to make the P2P process Ready, Reliable and Repeatable (RR&R). It’s called Lean Sigma. Rather than Six Sigma, which could be described as a taking a sledge hammer to crack a nut, Lean Sigma is less resource intensive, but delivers the equally compelling process improvement results and cost savings as Six Sigma.
If you are looking at your P2P process wing to wing with the very intention to prepare it for touchless, this learning lab is a must. You do not need to be a statistician to benefit from this learning lab.
During this morning’s session David will show you:
How to apply Value Stream Mapping to identify where inefficiencies lie
Learning Lab Facilitator:
David Faulkner - Global Head Buy To Pay (BTP)
13.30 – 16.30 Learning Lab B - TOUCHLESS P2P
Attaining Touchless Processing – A Practical Guide to How 80% of DSG International’s Electronic Invoices Are Truly Touchless
Is one of your goals to manage a touchless AP function? Invoices are sent by the supplier electronically, they contain complete and accurate data to ensure that, when the electronic transaction arrives in the system, it automatically 2 or 3 way matches. Then it sits in a posted status waiting to trigger a payment. No body sees the invoices and importantly for cost reasons, no body touches it. For every touch point in your P2P process, there’s a cost. So having a touchless process means significant cost saving.
In 2005 DSG International started a multi-staged journey which was preparing them for where they are today – running a world class AP operation. In this learning lab, Ian Duffield will give you insight into:
Learning Lab Facilitator:
Ian Duffield - UK Finance Manager Finance Operations and Accounts Payable
13.30 – 16.30 Learning Lab C - TOUCHLESS P2P
Creating Value From P2P 'Touchless' Processing Within Shared Services
Automation technology is the enabler for the transformation of F&A shared services as they reach for the 'touchless - self service' environment that will deliver those essential cost savings. However, selecting the correct technology for the correct processes will be the key to sustainable efficiency gains.
Please join Trintech to find out how you can improve efficiency and reduce costs whilst focusing on tighter internal controls and improved service. This learning lab will highlight a variety of innovative ways in which you can help to drive more value from your shared service centre and will discuss:
Learning Lab Facilitator:
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