MC                                          Smart Invoicing                                          Move Beyond Scanning ...
Smart Invoicing: When Good Enough Isn’t    PayStream Advisors                                                             ...
How Does Your Organization Measure Up?     Invoice Automation Benchmarks    Key Performance Indicator (KPI)               ...
Invoice Exception and Error Rates    •    On average 11% of invoices         have errors    •    On average 17% of invoice...
Best Practice: Ariba Smart Invoicing      The best invoice solution is the one that is TOUCHLESS           Lower AP/AR C...
Smart Invoicing     THE Business Driver for Strategic Savings    E-Invoice considered THE document regarding         worki...
MC                                          Smart Invoicing                                          Move Beyond Scanning ...
Deutsche Bank Overview    Company Overview    •   Deutsche Bank is a leading global investment bank with a substantial pri...
Procurement Operations History    As recently as seven years ago, Deutsche Bank had few    purchase orders and no invoice ...
Global Transformation Program                                                                                             ...
Solution Architecture11   © 2012 Ariba, Inc. All rights reserved.
Implementation Approach 1.       Work with our BPO and Systems Implementation partner Accenture on the          Global Tra...
Success to Date     •      Onboarded 3700+ suppliers onto the Ariba Network     •      Reduced BPO costs by ~35%     •    ...
Key Learnings     •       Target the right vendors. Transaction analysis more important             than spend analysis. S...
Next Steps     •   Complete Ariba Buyer implementation to replace our         existing SAP SRM eProcurement tool     •   C...
James Tucker                                                                                                      Global D...
Share This Session…NOW…from     your mobile!     •   All presentations are posted:                   Guidebook mobile app ...
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Smart Invoicing: Move Beyond Scanning to Achieve Paperless Invoice Processing

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  • Scanning and OCR are often the last stop in efforts to streamline invoice processing. However, for organizations dedicated to achieving best practices in accounts payable, they are really just the first step. This session will discuss how a "smart invoicing" approach using the Ariba Network can help finance organizations capture invoices from all suppliers and move to an electronic process that eliminates paper, invoice errors, and supplier inquiries. Leave this session with a blueprint for greater cost savings and contract, PO, and VAT/tax compliance.
  • Brain Storming – What are the elements of performance measurement in the procure-to-pay (buy-side) and order-to-cash (sell-side) processes?Example:Process efficiency/effectiveness – on-time, price per document, docs per FTE, discount captureCompliance: Sarbox, PO, Contract, VAT/tax, price, vendor, etc.Working Capital – cycle time (eg. DPO, DSO), Supplier (Customer) Management: e-enabled, quality, on-time delivery,
  • Smart Invoicing: Move Beyond Scanning to Achieve Paperless Invoice Processing

    1. 1. MC Smart Invoicing Move Beyond Scanning to Achieve Touchless Invoice Processing James Tucker, Ariba Will Chen, Deutsche Bank© 2012 Ariba, Inc. All rights reserved.
    2. 2. Smart Invoicing: When Good Enough Isn’t PayStream Advisors Zero - Touch Paper Free Imaging Enabled Paper Based Manual Workflow E-Invoicing Smart Invoicing2 © 2012 Ariba, Inc. All rights reserved.
    3. 3. How Does Your Organization Measure Up? Invoice Automation Benchmarks Key Performance Indicator (KPI) Laggards Average Innovators Invoice cycle time receipt-to-approve (P) 45 days 21 days 5 days (13 days EU) Invoices per FTE (H) 6,797 11,364 32,830 (8463 EU) Invoices with errors and exceptions (A) 30% 28% 12% First pass match rate (H) 65% 70% 85% (59% EU) Percent of electronic invoices (H) 7% 25% 67% (9% EU) Inquiries per 10,000 Invoices (H) n/a 756 n/a (1091 EU) (P) PayStream Advisors (H) The Hackett Group (A) Aberdeen (B) Billentis3 © 2012 Ariba, Inc. All rights reserved.
    4. 4. Invoice Exception and Error Rates • On average 11% of invoices have errors • On average 17% of invoices have exceptions ~ AND ~ • 37% of AP staff time spent responding to inquiries4 © 2012 Ariba, Inc. All rights reserved.
    5. 5. Best Practice: Ariba Smart Invoicing  The best invoice solution is the one that is TOUCHLESS  Lower AP/AR Costs  Ariba Smart Invoicing drives auto post rates of 98% compared to  Faster Cycles less than 60% with other solutions  Lower Risk Supplier Portal provides real-time Procure-to-Pay access to invoice and payment status eliminating inquiries to AP Invoice Number PO GST/VAT Invoice Acct Compliance Date Coding Commerce Price Qty Compliance Network Threshold Ship to Invoice Contract Address Match Unit Amt Threshold Pay Bill-To Address • 37% of AP staff time spent• 11% of invoices have errors responding to inquiries• 17% of invoices have exceptions Over 70 configurable rules that Order-to-Cash capture errors and exceptions before they reach AP5 © 2012 Ariba, Inc. All rights reserved.
    6. 6. Smart Invoicing THE Business Driver for Strategic Savings E-Invoice considered THE document regarding working capital optimization (3-for-1) E-Invoice considered THE document regarding VAT reclaim (7-for-1) E-Invoice considered THE document regarding contract compliance (9-for-1) E-Invoice considered THE document to maximize discount capture (2-for-1)6 © 2012 Ariba, Inc. All rights reserved.
    7. 7. MC Smart Invoicing Move Beyond Scanning to Achieve Paperless Invoice Processing Will Chen – Director, Global Transformation Lead© 2012 Ariba, Inc. All rights reserved.
    8. 8. Deutsche Bank Overview Company Overview • Deutsche Bank is a leading global investment bank with a substantial private clients franchise. Its businesses are mutually reinforcing. • A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. • With more than 100,000 employees in 72 countries (as of March 31, 2012), Deutsche Bank offers unparalleled financial services throughout the world. Products and Services • Private and Business Clients • Private Wealth Management • Asset Management • Markets • Corporate Finance • Global Transaction Banking8 © 2012 Ariba, Inc. All rights reserved.
    9. 9. Procurement Operations History As recently as seven years ago, Deutsche Bank had few purchase orders and no invoice automation: • Most operating locations had a local AP process ♦ No 3-way matching, no standard PO process ♦ Invoices approved/Cost Center and GL coded/manually via paper forms • Deutsche Bank growth over last 10+ years made these processes inefficient, unsustainable, and expensive ♦ Primary in-scope countries: Germany, US, UK, Singapore, Hong Kong, Australia/New Zealand, Spain and Japan o 2011 metrics: ~600K invoices processed representing €6.6B in spend across ~35,000 vendors9 © 2012 Ariba, Inc. All rights reserved.
    10. 10. Global Transformation Program WE ARE HERE Upgrading P2P architecture globally Phase 5 Phase 4 Q4 2011 – 2012* • Ariba Buyer implementation Phase 2/3 2011 – Q1 • Upgrade of P2P • SAP Back-end Portal changes 2010 Phase 1 • Ariba Invoice Management implementation P2P – Phase 2 2008 • Vendor Portal Release 2 • Ariba Network • Policy P2P - Phase 1 • eInvoicing and enhancements: “Lift &Shift” 2005 No-PO-no-Pay Payment Term policy policies, central 2004 • Global Platform (P2P Portal) mailbox • Staged transfer of • Workflow The Global Transformation Programme is a five phase programme to DB processes to changes standardise and upgrade the P2P architecture globally. APS Delivery Centers • Implementation of new sourcing tools10 © 2012 Ariba, Inc. All rights reserved.
    11. 11. Solution Architecture11 © 2012 Ariba, Inc. All rights reserved.
    12. 12. Implementation Approach 1. Work with our BPO and Systems Implementation partner Accenture on the Global Transformation Program 2. Enable 2 invoice submission channels: electronic invoices via Ariba Network (preferred method) and paper invoices via Accenture invoice conversion process 3. Continuous supplier enablement to the Ariba Network; ultimate goal is to achieve 80% eInvoice target • Prioritize by focusing on highest invoice transaction vendors before moving to “tail” • Dedicate project resources to the supplier enablement initiative 4. Use “carrot and stick” approach • Emphasize benefits of eInvoicing, including more accurate and timely payments • Mandate eInvoicing requirement via internal and supplier facing policies and work with category management team to reinforce requirements with vendors • Provide faster payment terms for vendors for eInvoicing (ie NET 30 vs. NET 45 / 60)12 © 2012 Ariba, Inc. All rights reserved.
    13. 13. Success to Date • Onboarded 3700+ suppliers onto the Ariba Network • Reduced BPO costs by ~35% • Invoice automation for improved efficiency and accuracy ♦ Processing went from 100% paper to over 60% e-invoicing in our target regions over 3-year period ♦ ~370,000 invoices in 2011 were processed electronically representing €3.4B in spend ♦ Invoice cycle time reduced dramatically for eInvoices (~10 days) compared to paper invoices; as a result, on-time payments have improved ♦ Early Pay Discount capture of €3.3M in 201113 © 2012 Ariba, Inc. All rights reserved.
    14. 14. Key Learnings • Target the right vendors. Transaction analysis more important than spend analysis. Supplier rationalization should be aligned with vendor enablement program (reduce the “tail” first). • Dedicated resources with policy mandates were key to project success; however, it can also lead to unintended behavior change with users (i.e. retrospective / back-end PO’s) • Opportunity areas: Communicate eInvoicing benefits to vendors; have an escalation model in place; collaborate with Ariba Robust integration between Ariba products for seamless end-to-end processes14 © 2012 Ariba, Inc. All rights reserved.
    15. 15. Next Steps • Complete Ariba Buyer implementation to replace our existing SAP SRM eProcurement tool • Continue our supplier enablement program for eInvoicing • Expand Early Pay Discount program (€5.0M target for 2012) • Expand our P2P solution to other DB target countries in 2012 and beyond • Optimize IT Consulting Services spend15 © 2012 Ariba, Inc. All rights reserved.
    16. 16. James Tucker Global Director Solution Marketing Q&A Ariba Ariba Network & Finance Management +1.650.390.1702 jtucker@ariba.com Procure-to-Pay Network Order-to-Cash Manage Cash Better What this new Smart Invoicing infographic has to say http://www.ariba.com/solutions/manage-cash.cfm may surprise you. Take a look. Manage Cash http://www.ariba.com/pdf/SmartInvoicing-Ariba.pdf Wednesday, May 30 (14:30-15:45) Mare Nostrum F Smart Invoicing: Move Beyond Scanning to Achieve Paperless Invoice Processing Wednesday, May 30 (16:00-17:15) Mare Nostrum F The Big Finance Payoff: Top Performance Metrics and How to Achieve Them Wednesday, May 30 (17:30-18:45) Mare Nostrum F e-Invoicing VAT Compliance Workshop: A Legislative Framework for Electronic Invoices Thursday, May 31 (10:00-11:15) Llevant Managing Cash Better in an Era of Limited Growth Thursday, May 31 (11:45-1:00) Llevant Streamlining Your Accounts Receivables with Outbound Invoicing16 © 2012 Ariba, Inc. All rights reserved.
    17. 17. Share This Session…NOW…from your mobile! • All presentations are posted: Guidebook mobile app – Search Apple or Android app store for Guidebook – Enter code “collabor8” Or at Slideshare.net/Ariba • Share via email or social media **Come back soon – we are syncing #AribaLIVE audio and video interviews to the presentations**17 © 2012 Ariba, Inc. All rights reserved.

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