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

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