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    Sum t casestudy_aep Sum t casestudy_aep Document Transcript

    • Success Profile Moving Beyond T&E to Maximize Cost SavingsAmerican® Electric PowerColumbus, Ohio USA through Expense Automationwww.aep.com“SumTotal provides solutions that drive im- BUSINESS CHALLENGES plementation costs down, while delivering a ■ Fragmented corporate card program made comprehensive reporting difficult more effective process, and giving us access ■ Deficient reporting resulted in non-compliance to important information.” ■ Unable to identify fraudulent claims— Steve Quincel Manager of Employee Expenses American Electric Power SOLUTION ■ Implemented SumTotal’s Expense Management solution to 14,000 employees Fast Facts RESULTS Industry: Electrical Utility ■ $1.6M spend reduction Region: North America ■ $500K rebate through consolidation of card programs Submitters: 14,000 + ■ $350K savings in processing costs Solution: SumTotal Expense Management ■ Reduced fraud and personal usage to 0.06% Integration: PeopleSoft ■ Employee reimbursement improved from 6 weeks to 48 hours Card Provider: Bank One MasterCard Based in Columbus, Ohio, American Electric Power, AEP (NYSE:AEP) is one of the largest electric utilities in the United States, with almost five million customers on its extensive roster. As a household name and the largest electricity generator in the U.S., AEP owns and operates more than 42,000 megawatts of generating capacity in domestic and select international markets. Upon successful consolidation of several corporate cards and vendors into one program, AEP sought to further leverage its savings through a complete centralization of its expense reporting platform. THE CHALLENGE With expense reporting as fragmented as its corporate card programs pre-merger, AEP lacked a meaningful way by which to gain comprehensive insight into company purchasing and T&E card spend patterns. Without this information, the company was at a loss to capture hidden savings, negotiate and maximize preferred rates with suppliers and identify ‘maverick’ employee spend on multiple cards. AEP needed a way to identify fraudulent claims on expenses being processed andwww.sumtotalsystems.com
    • “While the numbers are clear, employees to strengthen compliance within the organization. As a large public utility, AEP are also quite happy about the additional needed to comply with a number of auditing rules and government acts - making convenience posed by using only one card, their expense tracking a priority. eliminating confusion, and speeding up the Being able to deter any fraudulent claims through visibility was a necessary step reimbursement cycle. Process improvements for AEP for financial reasons, as well as corporate compliance with policy and made possible by SumTotal have freed up control over spend. internal resources and given employees time to focus on higher priority tasks.” To move away from paper-based systems and relieve overextended resources assigned to manual expense processing, AEP needed a single approach that — Steve Quincel would remove the administrative burden and bring all the necessary pieces Manager of Employee Expenses together. “Our high volume of corporate card users, coupled with an extremely American Electric Power cumbersome expense reporting process, led us to seek a high performance, robust solution that could quickly produce and improve service levels throughout the organization,” said Steve Quincel, Manager, Employee Expenses at AEP. “With fragmented programs, we weren’t able to conduct any sort of centralized reporting, so we had no idea how much we had spent with any particular vendor,” said Quincel. “An exhaustive review of our processes, as well as of several expense management solution vendors, opened the door to our relationship with SumTotal and its highly competent team of professionals.” RESULTS In selecting the SumTotal Expense Management web-based solution, AEP began to witness process improvements almost immediately. “Automation has enabled us to eliminate the re-keying of expense data and as a result, dramatically increase the accuracy of the data being captured,” explained Quincel. “With SumTotal, we now get it right the first time around.” Through automated email notifications to managers for expense approval, AEP has cut its reimbursement process from as much as six weeks to a mere 48 hours. “The electronic expense system - since it has workflow built into it - is so much faster than trying to move hard copy around. We’re able to turn things around so quickly that it is possible to complete an expense report and be reimbursed within two business days,” stated Quincel. When AEP first started using SumTotal’s solution it was for the framework of T&E expenses alone, but once they realized the solution was able to process any number of employee business expenses, they quadrupled the spend processed through the system and extended it to all other accounts of spend - using the solution to deliver more efficiency outside of just travel and entertainment. As for the consolidation of its card programs to Bank One MasterCard, AEP has benefited from higher merchant acceptance, as well as a $500,000 first year rebate by capturing all company purchasing and T&E spend from one spot. Named a “Best-in-Class Finance Organization” by Deloitte and Touche, the company hasess Whitepaper: The Future, of Strategic Mobile Workforce also experienced further savings that are attributed to its Accounting department. & Expense Management AEP now saves $3.50 per expense report on a total of 8500 reports submitted per month, which represents a $357,000 annual reduction in processing costs. Whitepaper: Applying Lean “While the numbers are clear, employees are also quite happy about the additional Manufacturing Initiatives to convenience posed by using only one card, eliminating confusion, and speeding Workforce & Expense Management up the reimbursement cycle,” said Quincel. “Process improvements made possible by SumTotal have freed up internal resources and given employees time to focusLL, on higher priority tasks.”al, www.sumtotalsystems.comGo
    • About SumTotal Perhaps one of the most significant benefits of automating expense reporting is the ability for AEP to maximize spend data to negotiate preferred vendor rates. UsingSumTotal Systems, Inc. is the global leader this information to drive negotiations, the company has reduced its spend in thisstrategic Human Capital Management area by $1.6 million per year. Better yet, AEP is not dependent on its corporate(HCM) solutions that provide organizations card to provide the data, as SumTotal’s solution allows for a consolidated viewwith a new level of visibility to help make of travel spend through a daily feed. “SumTotal has done the mapping work tomore informed business decisions and take the MasterCard feed and pull it into our expense system, allowing us to viewaccelerate growth. Recognized by indus- spending patterns with ease and enforce corporate policies.”try analysts as the most complete solution, Whitepapers With 14,000 users now on SumTotal Expense Management, AEP is exploring Executive Guide: ImprSumTotal provides full employee lifecyclemanagement, including a core system of further efficiencies in its business processes by uncovering hidden costs associated through S Talent Management Performancerecord, from a single provider for improved with VAT, offered to clients in partnership with a third party vendor. An additional Custome Compensation Management Partners, andbusiness intelligence. The company offers enhanced feature offered Performance Management by SumTotal is receipt imaging, which effectively scanscustomers of all sizes and industries the paper and allows for the Learning Management (LMS) elimination of physical retention of these receipts.most flexibility and choice with multiple Extended Enterprise Through connecting its consolidated card program with SumTotal’s automated, best- Whitepaperpurchase, configuration, and deployment of-breed solution, AEP has become the Planning Succession model and benchmark for organizations Hiring & Recruiting Management Building a Business Caoptions. We have increased the perfor- looking to adopt best practices in expense management. SumTotal has delivered E-Learning for Externamance of the world’s largest organizations the powerful functionality and exceptional performance AEP requires to maintain itsincluding Sony Electronics (NYSE: SNE), Go high quality of service to its internal and external customers and to simultaneouslyAstraZeneca (NYSE: AZN [ADR]; London: reap the financial rewards.AZN), Amway (KUL:AMWAY), Seagate Case Studies: Orbitz, C(NYSE: STX), Dell (NASDAQ:DELL), and International Rectifier,Google (NASDAQ:GOOG). For more Next Steps Pharmacy Systems, Incinformation, or to request a demo, pleasecall +1 (800) 881-2546 (US / Canada), +1-352-264-2800+1 (508) 358-1072 (international) or visit Contact Us on the Webwww.sumtotalsystems.com Submit an RFP Download AdditionaAbout AEP Visit the Resource Center Resources from SumAmerican Electric Power is one of the www.sumtotalsystems.comlargest electric utilities in the UnitedStates, delivering electricity to more than5 million customers in 11 states. AEP ranksamong the nation’s largest generatorsof electricity, owning nearly 38,000megawatts of generating capacity in theU.S. AEP also owns the nation’s largestelectricity transmission system. AEP’sutility units operate as AEP Ohio, AEPTexas, Appalachian Power (in Virginia andWest Virginia), AEP Appalachian Power(in Tennessee), Indiana Michigan Power,Kentucky Power, Public Service Companyof Oklahoma, and Southwestern ElectricPower Company (in Arkansas, Louisianaand east Texas). AEP’s headquarters arein Columbus, Ohio.www.sumtotalsystems.comCorporate Headquarters EMEA APACSumTotal Systems, Inc. SumTotal Systems, UK SumTotal Systems India Pvt. Ltd. © 2011 SumTotal Systems, Inc. All rights reserved. SumTotal, and the2850 NW 43rd Street 59-60 Thames Street 7th Floor Maximus Towers SumTotal logo, are registered trademarks or trademarks of SumTotalSuite #200 Windsor, Berkshire Building 2B, Mind Space Systems, Inc. and/or its affiliates in the United States and/or otherGainesville, FL 32606 USA United Kingdom, SL4 1TX Raheja IT Park, Cyberabad countries. Other names may be trademarks of their respective owners.Phone: +1 352 264 2800 Phone: +44 (0) 1753 211 900 Hyderabad, AP- 500081, India 11_0727LSFax: +1 352 264 2801 Fax: +44 (0) 1753 211 901 Phone: +91 (0) 40 6695 0000 Fax: +91 (0) 40 2311 2727