Invoice Data Capture


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Invoice Data Capture

  1. 1. Invoice Data Capture ProjectHow The Walt Disney Company Transformed AccountsPayable Shared Services with Intelligent Data CapturePresented by: Jeffrey P. Valentino 1
  2. 2. About the Presenter… Jeff Valentino• Sr. Manager, Accounts Payable; Disney Worldwide Shared Services (North America and EMEA Regions)• 20 years of Financial and Operational management experience with Fortune 100 companies• Held a variety of leadership positions with a focus on strategic growth, reversing financial declines and capturing cost reductions via process redesign and performance enhancement programs• ~ 5 years with The Walt Disney Company in a Shared Services environment• Earned an MBA at University of Florida and Six Sigma Green Belt Certified
  3. 3. Who is ?Whether keeping a smile on at our parks, presenting the news at ABC, creating films and television shows, building attractions or stores, or covering sporting events, The Walt Disney Company is a multimedia conglomerate with focuses in 4 key areas…….
  4. 4. 149,000 employees worldwide 42 Countries and 10 languages EMEA Austria Belgium Czech Republic Denmark Finland France Germany Greece* Hungary* Asia-Pacific Israel* Australia Italy China Netherlands Korea Norway Hong Kong Poland* North America Japan Portugal Canada Latin America Malaysia South Africa* Puerto Rico Argentina New Zealand Spain USA Brazil Philippines Sweden Chile Singapore Switzerland Colombia Taiwan Turkey* Mexico Thailand UK* Have limited scope Peru Venezuela
  5. 5. Organization – Disney Worldwide Shared Services (DWSS) DWSS Mark Kingman Financial Travel Employee/ Optimization HR Services Services Cast Services Services Support Travel & Project Team/ General Employee Quality, Accounts Expense Global Payroll Information Accounting, Administrative Technology Controls, Human Cash & Banking, Payable Management, Travel Services & Finance Resources and Fixed Assets Card AdminHC: 43 53 15 90 39 40 12 5 1 Key Services: • Fixed Assets • Employee Inquiries • Domestic • Travel Spend • Global Travel • Payroll • Project • Quality • Escheatments/ • Employee Doc Mgmt and EMEA Analysis • Event Booking • Payroll Management • Metrics Unclaimed • Employee Transaction AP • Credit Card • Production Taxes • IT (local apps) • Controllership Property Processing Admin Travel Support • Financials • Cash and • Compliance Training • Domestic Administration Banking and EMEA • I9 stewardship • General Acct T&E (account reconciliations) 6
  6. 6. DWSS Annual Impact/Scope TRANSACTIONS EMPLOYEE/CAST IMPACT • Manage 29k Active Credit Card Accounts • Over 150k Inquiries • Pay 5-6M invoices • Process 350k Expense Submissions, 31K • Over 120k Employees/Cast Paid; 220k W2s Items Audited produced • Process 3-400K Fixed Asset Transactions • Manage Annual Compliance Training and 4k Projects Capitalized • Process over 200k Employee/Cast Status • Submit over 4,000 Tax Filings Changes, Fitness Reimbursements, Educational • Reconcile 366 Cash Accounts and over Reimbursements, Leaves, etc. 200k Active Ledger Accounts • Manage Employee/Cast Documents FINANCIAL • $18B disbursed in AP • $5B disbursed in Payroll • $3-4M in Travel Card spend • Account for $25B in Assets • Remit over $ 1B in Payroll taxes • 42k Wires for $19B to date 7
  7. 7. A/P Statistics and Trends ~ 5M+ invoices annually ~ $18B in disbursements annually Global scope encompasses North America and EMEA countries Cost per invoice $1.61 May ’04 May ’07 May ’10 May ’11 FYE ’11 (Sept) FY’12 (Dec)Headcount 105 88 64 61 53 53Defect Rates 11.3% 10.1% 10.1% 10.7% 9.4% 8.6%Invoices Per FTE 38K 59K 64K 69K 72K 83K (EST)(annualized)Electronic Payments 15% 32% 48% 49% 53% 53%Electronic Invoicing 86% 89% 92% 92% 92% 92%Invoices POT(HOT) 67% 82% 91% 92% 95% 95%
  8. 8. Continuous Improvement Strategy Work Breakdown Goal Strategy Tier 1 • Customer partnering • Improve skills and focus • Value-added consulting/service/analysis ENHANCE • Information management • Complex issue resolution FTE’s FY06 FY11 • Process management/controls 17 29 Tier 2 • Process-wide improvements • Data fixing ELIMINATE • Edit at source • Measure and improve • Routine problem resolution FY06 FTE’s FY11 • Exception routines 39 20 Tier 3 • Data entry and manipulation AUTOMATE OR • Self service via internet • Repetitive transactional tasks • ERS, EDI, IDC….. OUTSOURCE FTE’s FY06 FY11 • Vendors 28 4 Technology is a true enabler for driving world-class service, efficiency, and value
  9. 9. Accounts Payable Roadmap Zero - Touch Paper Free Imaging Paper Enabled Based Manual Workflow E-Invoicing P-to-P
  10. 10. Invoice Processing Project BackgroundProblem Statement• Disney manually processes ~500,000 invoices annually (92% electronic)• Posting of paper purchase order related invoices is labor intensive• Paper invoices detract from our Green Standard and Carbon Footprint Reduction InitiativesGoals/Objectives:• Reduce DWSS AP manual effort applied to scanned invoices by 80% o Auto-post invoices with no manual intervention o Identify defective invoices - without manual intervention• Reduce DWSS AP indexing costs by 80%• Provide path to migrate to 100% Green Standard for invoicing o Allow for vendor/BU-direct submission of invoice images (e.g. email a PDF image)• Use new data to drive analysis efforts in PTP (e.g. improved discount capture)• Define translation opportunities across PTP and DWSS processes 11
  11. 11. Invoice Processing Project Background Project Scope: • Implement technology to provide image-based invoice data capture o Provide for auto posting of invoices into SAP • Integrate technology solution into existing EIT imaging environment Infrastructure • SAP ERP: “TWDC has the largest single instance of SAP in the world” • SAP Workflow • EDOCS image archive • Microsoft SQL Server Enterprise 12
  12. 12. Technology Selection ApproachMulti-Phased RFP Approach• Phase 1: Selected top RFP candidates out of 7 industry leaders to move to Phase 2• Phase 2: On-site assimilation of TWDC vendor invoice sample (“Bake-off”) o Statistical sample of 3,028 invoices representing a variety of invoice challenges  All languages, currencies, purchase order types, ranges of defects, types of inbound documents  USA, UK, France, Spain, Italy, Portugal, Germany, Austria, Switzerland, Belgium, Netherlands, and Luxemburg o 2 vendors showed; 4 bowed out, 1 vendor could not comply with terms
  13. 13. Technology Selection ApproachBrainware:• 3,028 Images processed through OCR – “Distiller”• 1,005 Images made ready to Post – “Verifier”• Throughput  76% Extraction Rate  600 invoices/ person/ day  35% Straight Thru Processed (STP) – zero touch• Impact = 8 FTE Reduction The clear• 5 Customizations identified during event choice!Industry Competitor:• 3,028 Images processed through OCR• 95 Images made ready to Post (on 2nd attempt)• Throughput  130 invoices/ person/ day  0% Straight Thru Processed (STP) – required human intervention• Impact = 0 FTE Reduction 14
  14. 14. Other Considerations … • Brainware is the only true provider of intelligent data capture and enterprise search solutions, and is widely regarded as the market leader in this space • Brainware is the only true intelligent data capture platform that we were able to validate for extraction and processing data from both structured and unstructured documents • Brainware first launched it’s intelligent data capture solution, Brainware Distiller, in 2000 • Brainware has successfully delivered more than 350 implementations of its software solutions worldwide; throughout the Americas, Europe, the Middle East, and Asia
  15. 15. Brainware Customer Base
  16. 16. Recommendation & Business CaseRecommendation• Implement Brainware  Complements EIPP for a complete invoice payment strategyBusiness Case• DWSS AP Savings  Labor reduction: 8 FTE  Eliminate the need to index imaging: $ Savings  Payback period: ~ 2 years with positive NPV + 20%• Intangible Benefits  Reduced cycle-time  Increased paid-on-time  Comprehensive invoice process
  17. 17. BW Development and Implementation – “less than 100 days”
  18. 18. Progress Since Go-Live ... IDC: Brainware Auto-Posting Invoice Activity Auto Post Linear (Auto Post)100.0% 80.0% 60.0% 53.3% 40.0% 30.7% 20.0% 0.0% 19
  19. 19. Questions?