Organising Your Paper P2P to Attain Quick Wins - How to Add £2.2 M to the Bottom Line in a Paper World

We are routinely told that at the root of enabling Working Capital Management optimisation needs to be clean and ideally automated P2P (and O2C) process. This story fl ies in the face of that belief system and will come as welcome news to all those AP and P2P organisations out there who are not ‘process mature’. In 2008 ITV went live with Oracle and their new Business Services Centre (BSC), recruiting 120 staff, 80 of which were external and 40 from the previous finance function. However, change in media organisations ishard and the Business didn’t understand some of the new changes. The result was the BSC was swamped by over 3,500 calls and 6,000 emails a month asking for advice, seeking support and trying to come to grips with the change. A year on, ITV BSC process 200,000 invoices per annum, of which 80 % are PO backed, (80% which match first time). Their invoice management workfl ow process was manual in the main with each FTE processing 12,000 invoices per annum. So what makes this story different? This session will look at how shared services has enabled the small changes that were made to areas like payment terms, payment runs and the significant impact these changes are having on working capital. The impact on the bottom line? Over £2.2 million per annum, and all possible in a paper P2P environment.

Ian Butterworth
Head of Purchase to Pay
ITV

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