Ceridian E-Payables Solution

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Ceridian E-Payables Solution

  1. 1. How to Transform your Accounts Payable Departmentinto a Revenue Generator<br />
  2. 2. Comdata is a leading provider of innovative, value-added payment and information solutions<br /><ul><li>40+ years experience
  3. 3. Productivity improvement, cost reduction and expense management
  4. 4. A One-Card Solution for purchasing, travel, fleet, per diem and payables disbursements
  5. 5. Provide strategy, implementation and support services </li></li></ul><li>Treasury Management<br />Voice of the Customer<br /><ul><li>Reduce cost and streamline business processes
  6. 6. Contribute to revenue development
  7. 7. Mitigate risk and simplify accounting processes</li></ul>Disbursements Management<br />Corporate Fleet<br />Purchasing <br />Travel<br />Payroll, Per diem and Incentive<br />3<br />3<br />
  8. 8. Today’s Payment Landscape<br />“Manual, paper-based accounts payable departments are eroding the bottom line of large and mid-market enterprises by an order of millions of dollars each year….and the stage is set for a major financial makeover.”<br />4<br />
  9. 9. Top Factors Driving Electronic Payments<br />
  10. 10. An Electronic Payment Application<br />for Every Situation<br />
  11. 11. Reduce Costs<br />Eliminates cost of check processing, averaging $5.14*<br /> Mitigate check fraud and cost of positive pay <br />Generate monthly revenue on vendor payments<br />Ex: $3.0M monthly volume @ 1.50% = $45,000<br /> Paid monthly on actual volume<br />Easily implemented<br />Integrates as another payment type in your AP application<br />Vendor enrollment support with worldwide acceptance<br />Eliminate 1099 Reporting<br />IRC Section 6050W – Effective January 1, 2011<br />Card-based vendor payments – Merchant acquirers responsible for reporting<br />
  12. 12. ElectronicPayment Delivery<br /><ul><li>It is linked to a single vendor payment with a remittance advice
  13. 13. A Virtual Card is a unique 16 digit MasterCard account number
  14. 14. The MasterCard number is issued for a specific dollar amount
  15. 15. Accepted by millions of suppliers worldwide</li></li></ul><li>Reconciliation Process<br />Invoice file from Comdata containing all merchant processed transactions<br />Your payables disbursement file contains consolidated supplier invoices, amounts and associated MasterCard account number(s). A GL clearing account is assigned to all transactions<br />Unprocessed merchant transactions<br />Virtual MasterCard Process for AP<br />The Vendor is paid with the Virtual Card<br />The merchant authorizes MasterCard transaction based upon pre-defined parameters – date, time, amount.<br />Comdata distributes and returns a Virtual MasterCard account number for each vendor payment processed.<br />Example: #1234 4321 3567 8235<br />Expiration 04/2005<br />CV2 345<br />Vendor<br />Company submits a Payables Disbursement File from ERP to Comdata<br />Customer<br />
  16. 16. Traditional AP Check vs. Virtual Payment Timeline<br /><ul><li>With Comdata MasterCard Virtual Payment, our Customers:
  17. 17. Enjoy the same float as a traditional AP check(est. 5 to 7 days)
  18. 18. Earn a cash monthly rebate
  19. 19. May initiate payment on the invoice due date
  20. 20. Eliminate the manual prework and reconciliation associated with checks</li></li></ul><li>
  21. 21. Vendor Acceptance<br /><ul><li> Over 8 million vendors in the U.S. accept MasterCard
  22. 22. Here are some examples of vendors our customers are paying today: </li></ul>OFFICE SUPPLIES<br /><ul><li>Office Depot
  23. 23. Office Max
  24. 24. Staples
  25. 25. Boise Cascade</li></ul>SHIPPING<br /><ul><li> FedEx
  26. 26. UPS
  27. 27. USPS
  28. 28. Pitney Bowes</li></ul>TELECOMMUNICATIONS<br /><ul><li> Verizon
  29. 29. Sprint
  30. 30. AT&T
  31. 31. Qwest</li></ul>UNIFORMS<br /><ul><li>Aramark
  32. 32. Cintas
  33. 33. Unifirst
  34. 34. Penn Emblem</li></ul>PAPER / PRINTING<br /><ul><li> International Paper
  35. 35. Unisource
  36. 36. Xerox
  37. 37. Kinko’s</li></ul>LABOR / STAFFING<br /><ul><li> Adecco
  38. 38. Spherion
  39. 39. Kelly Services
  40. 40. Randstad</li></ul>ADVERTISING<br /><ul><li>Yellow Pages
  41. 41. Lamar Outdoor Advertising
  42. 42. Google
  43. 43. Clear Channel</li></ul>SOFTWARE / SYSTEMS<br /><ul><li> Microsoft
  44. 44. Oracle
  45. 45. Intuit
  46. 46. Apple</li></ul>VARIOUS RETAIL<br /><ul><li> Walmart
  47. 47. Target
  48. 48. Home Depot / Lowes
  49. 49. Costco</li></li></ul><li>Credit Card Acceptance The Merchant Value Equation<br />Supplier<br />card acceptance<br />(2.45% on average)<br />Customer<br /> Rebate (1.50%)<br />Comdata<br /> (0.95%)<br />Value of Acceptance<br />Increased sales from larger base of potential customers<br />Electronic payments eliminate check fraud and mailing delays <br />Lower collection cost and bad debt elimination<br />Customer loyalty and risk mitigation<br />13<br />
  50. 50. Executive Sponsorship<br />Internal Processes<br />Training<br />New Vendors<br />Purchasing<br />RFP<br />Contracts<br />Contests<br />Check Runs<br />Joint Strategic Calls<br />New Pay Method<br />Terms<br />Discounts<br />Contracts<br />Proprietary<br />Mass Vendor Contact<br />Mailings<br />Check Stuffers<br />Emails<br />Website<br />Faxes<br />Calling Campaign<br />Enrollment Results<br />Set goals<br />Reporting<br />Rebate<br />Process Improvement<br />Incentives<br />Strategic Sourcing<br />Four Pillars of Vendor Enrollment<br />
  51. 51. Case Study: Health First<br /><ul><li>Not-for-profit hospitals in Florida
  52. 52. Four facilities (900 beds)
  53. 53. Shared-Services Group
  54. 54. PeopleSoft ERP</li></ul>* Example only - based upon billing and payment terms <br />
  55. 55. Health First<br />Case Study<br />68% Transactions less than $5,000.00<br />86% Spend is greater than $5,000.00<br />
  56. 56. Case Study: Kinder Morgan<br /><ul><li>Largest energy storage and pipeline transportation company
  57. 57. NYSE: KMP and KMR
  58. 58. 8,000 employees</li></li></ul><li>Case Study<br />*Example only – based upon billing and payment terms<br />
  59. 59. Keys to Success<br />Vendor enrollment defined and continuously executed<br />Employees promote program as preferred payment method<br />Reduced check processing from 3 days to 1 day per week<br />Program settlements process daily with simple file transfer<br />81% Trx < $5K<br />62% Spend > $10K<br />
  60. 60. Summary<br />Delivering Value in Corporate Payments<br />
  61. 61. Questions?<br />Edwin W. Benson<br />Director, Corporate Payments<br />Comdata <br />615-370-7160 Office<br />615-364-8537 Mobile<br />ebenson@comdata.com<br />Brooke Davis<br />Major Account Representative<br />Ceridian <br />901-746-8726 Office<br />901-848-2636 Mobile<br />brooke.davis@ceridian.com<br />

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