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The Cost Of Control“De Missing Link tussenFinance en Procurement”<br />Delft, 1 juli 2010<br />Bram Kuijper, Basware<br />
2 studies<br />Cost of Control 2009 & 2010<br />IESE ,  Loudhouse<br />Finance & Procurementtowards                      A...
Cost of Control – The missing link between Finance & Procurement<br />Survey of 550 CFOs of large organisations to explore...
Relationship between procurement and finance
Attitudes and awareness of risk in the supply chain
Levels of automation of purchase to pay processes</li></ul>“The missing link”<br />
Sample breakdown<br />Scandinavia<br />100<br />interviews<br />UK<br />100<br />interviews<br />Germany<br />50 (100)<br ...
What were the main priorities for FDs?<br />POLL 1<br /><ul><li>A 	Cashflow
B 	Costcutting
C 	SpendVisibility</li></li></ul><li>What were the main priorities for FDs?<br />
What were the main challenges for FDs?<br />POLL 2<br /><ul><li>A	Technologychallenges
B	Supplier Risk
C	SpendVisibility</li></li></ul><li>What are the main challenges for FDs?<br />
Integration of purchasing & invoice processes <br />POLL 3: how do we integrate in NL?<br /><ul><li>A	Above 50%
B	Under 50%</li></li></ul><li>Integration of purchasing & invoice processes <br />
Level of Automation<br />POLL 4: ourfullyautomated score in NL?<br /><ul><li>A	Above 30%
B	Above 50%</li></li></ul><li>Level of Automation<br />
Capture, Automation & Integration<br />Integrated core of accuracy, automation and spend capture<br />Majority of processe...
Impact on Finance Automation<br />Automation of finance department leads to wins in areas of efficiency and collaboration ...
2010 Survey<br />Cost of Control 2010 is based on 550 telephone interviews undertaken with CFOs / Finance Directors in com...
2010 survey -> Priorities over the next 12 months<br />Although cost reduction remains a key priority, there is a healthy ...
2010 survey -> More significant challenges than 12 months ago<br />FDs are facing more challenges now than 12 months ago  ...
% of indirect spend captured in PO systems<br />In 2010, on average 46% of indirect spend is captured by PO systems,  <br ...
% of spending processes currently automated<br />In 2010, on average 56% of processes behind spending are automated,  <br ...
Enterprise Benelux<br />A typical enterprise in the Cost of Control 2010 study ......<br />Has 71 days sales outstanding (...
What about the facts on capture, integration & automation??<br />What’s the secret to success??<br />What is the best mix?...
Time spent on AP activities<br />POLL 5<br /><ul><li>A	Data capture
B	AP Management
C	ExceptionHandling</li></li></ul><li>Time spent on AP activities<br />
High vs low performing AP departments<br />
Forrester’s grading in performance<br />
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Presentatie 'cost of control the missing link' bram kuijper - basware - sepei seminar 01-07-2010

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Presentatie van Bram Kuijper (Basware): 'The Cost of Control, de missing link tussen inkoop en finance', Seminar E-procurement & E-invoicing - 1 juli 2010 #sepei

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Transcript of "Presentatie 'cost of control the missing link' bram kuijper - basware - sepei seminar 01-07-2010"

  1. 1. The Cost Of Control“De Missing Link tussenFinance en Procurement”<br />Delft, 1 juli 2010<br />Bram Kuijper, Basware<br />
  2. 2. 2 studies<br />Cost of Control 2009 & 2010<br />IESE , Loudhouse<br />Finance & Procurementtowards AP Invoice Processing Excellence<br />Forrester Research<br />
  3. 3. Cost of Control – The missing link between Finance & Procurement<br />Survey of 550 CFOs of large organisations to explore<br />Developed in conjunction with LoudhouseResearch <br />Themes of survey: <br /><ul><li>Strategic priorities of organisations
  4. 4. Relationship between procurement and finance
  5. 5. Attitudes and awareness of risk in the supply chain
  6. 6. Levels of automation of purchase to pay processes</li></ul>“The missing link”<br />
  7. 7. Sample breakdown<br />Scandinavia<br />100<br />interviews<br />UK<br />100<br />interviews<br />Germany<br />50 (100)<br />interviews<br />USA<br />100<br />interviews<br />Benelux<br />50<br />interviews<br />France<br />50<br />interviews<br />Spain<br />50<br />interviews<br />Job role<br />Average company size: 9,600 employees<br />
  8. 8. What were the main priorities for FDs?<br />POLL 1<br /><ul><li>A Cashflow
  9. 9. B Costcutting
  10. 10. C SpendVisibility</li></li></ul><li>What were the main priorities for FDs?<br />
  11. 11. What were the main challenges for FDs?<br />POLL 2<br /><ul><li>A Technologychallenges
  12. 12. B Supplier Risk
  13. 13. C SpendVisibility</li></li></ul><li>What are the main challenges for FDs?<br />
  14. 14. Integration of purchasing & invoice processes <br />POLL 3: how do we integrate in NL?<br /><ul><li>A Above 50%
  15. 15. B Under 50%</li></li></ul><li>Integration of purchasing & invoice processes <br />
  16. 16. Level of Automation<br />POLL 4: ourfullyautomated score in NL?<br /><ul><li>A Above 30%
  17. 17. B Above 50%</li></li></ul><li>Level of Automation<br />
  18. 18. Capture, Automation & Integration<br />Integrated core of accuracy, automation and spend capture<br />Majority of processes operate outside the ‘core’<br />43% of indirect spending captured<br />50% of processes supporting purchasing are automated <br />Capture<br />Automation <br />Integration <br />46% of FDs consider that purchasing and finance functions are integrated effectively <br />
  19. 19. Impact on Finance Automation<br />Automation of finance department leads to wins in areas of efficiency and collaboration with procurement<br />+8<br />+7<br />+4<br />+4<br />+3<br />+1<br />0<br />% scoring 6-7 (Good, Very Good or Excellent)<br />
  20. 20. 2010 Survey<br />Cost of Control 2010 is based on 550 telephone interviews undertaken with CFOs / Finance Directors in companies with 1000+ employees. The study was conducted by Loudhouse Research <br />and follows on from a previous study in 2009.<br />By company size<br />
  21. 21. 2010 survey -> Priorities over the next 12 months<br />Although cost reduction remains a key priority, there is a healthy focus on margins and profits in 2010<br />2009<br />64%<br />39%<br />37%<br />45%<br />55%<br />43%<br />39%<br />27%<br />24%<br />* Arrows reference movement of +/- 5% <br />
  22. 22. 2010 survey -> More significant challenges than 12 months ago<br />FDs are facing more challenges now than 12 months ago - particularly in identifying and realising further cost savings and issues relating to systems integration / technology. In 2009, the top two challenges were spend visibility and increased supplier risk – both of which have diminished in relative importance this year<br />2009<br />34%<br />31%<br />25%<br />37%<br />29%<br />22%<br />31%<br />18%<br />35%<br />24%<br />22%<br />6%<br />
  23. 23. % of indirect spend captured in PO systems<br />In 2010, on average 46% of indirect spend is captured by PO systems, <br />a marginal increase since 2009 when the average was 43%<br />46%average<br />
  24. 24. % of spending processes currently automated<br />In 2010, on average 56% of processes behind spending are automated, <br />a marginal increase since 2009 when the average was 50%<br />56%average<br />
  25. 25. Enterprise Benelux<br />A typical enterprise in the Cost of Control 2010 study ......<br />Has 71 days sales outstanding (DSO)<br />Generates 60,654 invoices per year<br />Currently manages 1,924 supplier relationships<br />Employs 19 full time procurement staff<br />Employs 26 full time accounts payable staff<br />Had stable revenue (0%) during 2009<br />Experienced profit margin decline (-2.5%) during 2009<br />47% of overall company spend is managed by the procurement department<br />
  26. 26. What about the facts on capture, integration & automation??<br />What’s the secret to success??<br />What is the best mix??<br />
  27. 27. Time spent on AP activities<br />POLL 5<br /><ul><li>A Data capture
  28. 28. B AP Management
  29. 29. C ExceptionHandling</li></li></ul><li>Time spent on AP activities<br />
  30. 30. High vs low performing AP departments<br />
  31. 31. Forrester’s grading in performance<br />
  32. 32. What is the respondent’s general opinion on:<br />
  33. 33. What about procurement & finance collaboration:<br />
  34. 34. What is the average automation level:<br />
  35. 35. What is the way to handle approvals/exceptions:<br />
  36. 36. What is the relationship between AP practice & performance:<br />
  37. 37. Centralize AP responsibility<br />Persuadesuppliers to sendinvoiceselectronically<br />Implemente-procurement<br />Achieve high PO coverage, butnot 100% <br />Implementinvoice (exceptionhandling) approval software<br />Good relations withprocurement, system wise<br />What is the best mix to reach the top quadrant:<br />
  38. 38. Basware offeringe-procurement & e-invoicing<br />Suppliers Legacy Systems e.g. Order Management, Billing<br />Basware Connectivity<br />CatalogExchange<br />Purchase MessageExchange<br />Scan andCapture<br />E-invoicing<br />SupplierActivation<br />Procurement<br />Invoice Automation<br />Customer Legacy Systems e.g. Financial Systems, ERP<br />
  39. 39. Basware Open Network for e-invoices<br />Buyers<br />Supplier<br />Portal<br />Invoices < 10<br />Email <br />sending<br />Invoices 10-100<br />Basware<br />Business <br />Transactions<br />“Virtual<br />Printer”<br />Invoices 100-500<br />Supplier<br />Buyer<br />Invoices > 500<br />Integrated<br />connection<br />Supplier<br />Scan and <br />Capture<br />Printing<br />services<br />
  40. 40. e-mail: bram.kuijper@basware.com<br />Web: http://www.basware.com<br />Thankyouforyourattention!!!<br />
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