The View from AP?

2

© 2014 Ariba – an SAP company. All rights reserved.
Invoice Processing Performance:
Fair or Foul?

90:10
3

© 2014 Ariba – an SAP company. All rights reserved.
Invoice Processing: What Can Go Wrong?
No requester name, contact data
No purchase order number
No order confirmation
No a...
The Path to Touchless Processing

5

© 2014 Ariba – an SAP company. All rights reserved.
The Path to Touchless Processing

6

© 2014 Ariba – an SAP company. All rights reserved.
The Business Case for Success

It’s as easy as 1+2+3+4 = $10M /$1B in Spend
CHALLENGE
1. Process

2. Discount
3. Working
C...
About GAF

•

Largest roofing manufacturer in N. America
Founded in 1886 – HQ in Wayne, NJ
$3 billion in sales – 23 plant ...
Business Challenge

•
•

GAF is a lean organization
AP moved to an external invoice processing system
Reduced AP headcount...
Business Challenge (continued)

•

Too many resources expended on transactional activities
Diverts focus from buying activ...
Business Goals

•
•
•
•

11

Free up procurement to drive strategic buying
Maximize spend with key suppliers to lower pric...
Solution Approach

•

Ariba Network Adapter
Connect Maximo and PeopleSoft systems to Ariba Network

•

Ariba PO and Invoic...
GAF Environment

•

This is a content bullet
This is a content sub-bullet number one
This is a content sub-bullet number t...
Results

•
•
•
•

From 8% to 67%+ touchless invoice processing
Automate 60% of MRO transactions, 80% of Maximo spend
Ease ...
Vendor Managed Inventory – MRO
Vending Machines

•

Legacy process – Blanket P.O.
Monthly summary invoices with line item ...
Next Steps

•
•
•
•
•

16

Extend automation to direct materials spend
Increase touchless processing rate to 80%+
Expand s...
Breaking Bad: How to Turn Your AP Operations into a Center of Excellence
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Breaking Bad: How to Turn Your AP Operations into a Center of Excellence

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Is your accounts payable process so broken that 90 percent of your time is spent in reactive mode, fixing problems relating to orders and invoices? Attend this session and learn how you can eliminate invoice errors and exceptions with automation while empowering staff to focus on high-value activities such as managing supplier performance, enforcing contracts, and expanding early payment discounts.

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  • #1 – paper –based – highest cost and lowest level of automation with the highest amount of manual process (i.e. touch)#2 – scanning/workflow – lower cost to process than paper only; however, still high-touch high-cost; and with in-house scanning solutions high-capital costs#3 – paper free - is getting to AP faster#4 – Zero Touch - is getting through AP faster
  • Breaking Bad: How to Turn Your AP Operations into a Center of Excellence

    1. 1. Breaking Bad: How to Turn Your AP Operations into a Center of Excellence Chris Rauen, Solutions Marketing Manager, Ariba Patricia Hutton, Vice President of Global Procurement, GAF Dennis Glenn, Manager, Procurement Systems, GAF #AribaLIVE @ariba © 2014 Ariba – an SAP company. All rights reserved.
    2. 2. The View from AP? 2 © 2014 Ariba – an SAP company. All rights reserved.
    3. 3. Invoice Processing Performance: Fair or Foul? 90:10 3 © 2014 Ariba – an SAP company. All rights reserved.
    4. 4. Invoice Processing: What Can Go Wrong? No requester name, contact data No purchase order number No order confirmation No advance ship notice Wrong supplier Wrong price – quantity Exceeds contract total amount Missing tax amount or Tax ID# Net amount exceeds sub-total Missed early payment discount What invoice? 4 © 2014 Ariba – an SAP company. All rights reserved.
    5. 5. The Path to Touchless Processing 5 © 2014 Ariba – an SAP company. All rights reserved.
    6. 6. The Path to Touchless Processing 6 © 2014 Ariba – an SAP company. All rights reserved.
    7. 7. The Business Case for Success It’s as easy as 1+2+3+4 = $10M /$1B in Spend CHALLENGE 1. Process 2. Discount 3. Working Capital 4. Compliance OPPORTUNITY “1-for-1” 60-80% cost take out – or about $1M per $1B in spend for average to large Payables and Procurement organizations “2-for-1” for every $1B in discountable spend $2M+ in discount savings “3-for-1” $2.7 million in working capital impact for every $1 billion per day of improvement of DPO, DSO, DIO “4-for-1” $4.6M in contract leakage savings for every $1B in spend under contract 7 © 2014 Ariba – an SAP company. All rights reserved.
    8. 8. About GAF • Largest roofing manufacturer in N. America Founded in 1886 – HQ in Wayne, NJ $3 billion in sales – 23 plant locations • Broad industry recognition (Named – Rated #1) Shingle quality by contractors and home builders Innovation for shingles and ridge ventilation by home builders 8 © 2014 Ariba – an SAP company. All rights reserved.
    9. 9. Business Challenge • • GAF is a lean organization AP moved to an external invoice processing system Reduced AP headcount New system touchless processing rate was at 8% Pushed more invoice processing to Buyers Further increased transactional activities of Buyers • 9 Result: Procurement handled problem invoices © 2014 Ariba – an SAP company. All rights reserved.
    10. 10. Business Challenge (continued) • Too many resources expended on transactional activities Diverts focus from buying activities • Interest in reducing rogue spend Drive to national contracts 10 © 2014 Ariba – an SAP company. All rights reserved.
    11. 11. Business Goals • • • • 11 Free up procurement to drive strategic buying Maximize spend with key suppliers to lower prices Expand use of catalogs and extend purchasing to casual user Check-to-ACH payment initiative © 2014 Ariba – an SAP company. All rights reserved.
    12. 12. Solution Approach • Ariba Network Adapter Connect Maximo and PeopleSoft systems to Ariba Network • Ariba PO and Invoice Automation Automate PO delivery from Maximo/PSOFT to Ariba Network Smart invoice business rules for automatic validation, touchless processing PO-Flip® for perfect payable • 12 Ariba Procurement Content © 2014 Ariba – an SAP company. All rights reserved.
    13. 13. GAF Environment • This is a content bullet This is a content sub-bullet number one This is a content sub-bullet number two This is a content sub-bullet number three • This is a content bullet This is a content sub-bullet number one 13 © 2014 Ariba – an SAP company. All rights reserved.
    14. 14. Results • • • • From 8% to 67%+ touchless invoice processing Automate 60% of MRO transactions, 80% of Maximo spend Ease of use – plant stores personnel, casual users Enforce compliance – better spend management Dramatically reduced rogue spend Lower pricing from higher spend volume with select suppliers Improved supplier relationships 14 © 2014 Ariba – an SAP company. All rights reserved.
    15. 15. Vendor Managed Inventory – MRO Vending Machines • Legacy process – Blanket P.O. Monthly summary invoices with line item details as attachments Time consuming – manually reconciled • Now, supplier posts quote in Ariba Procurement Content Punch out to vendor and turn quote into detailed, line-item P.O. Automatic P.O. – invoice match 100% straight-through processing! 15 © 2014 Ariba – an SAP company. All rights reserved.
    16. 16. Next Steps • • • • • 16 Extend automation to direct materials spend Increase touchless processing rate to 80%+ Expand system access to new users Drive more savings by consolidating spend Continue check-to-ACH conversions © 2014 Ariba – an SAP company. All rights reserved.

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