Shifting Gears - Driving Efficiency: Using innovative  automation technology and solutions for better             performa...
Overview   Global Trends   Value, Advantages & Opportunities of SSC’s   Where to begin, Enhancing your SSC with Partners  ...
Introduction 15 years in finance, focused on process improvement in SSC’s. Implemented Reporting & Scanning systems in Aus...
SSCs becoming increasingly strategic… Deloitte 2009 Global SSC Survey Results  “Companies are continuing to expand their S...
High level Drivers for SSCs Implement a consistent, harmonized set of best practice business processes across a region Sta...
Competitive Advantages of a SSC                                  Mastering SAP Financials 2010
Automation is key to driving value in SSCs Business process improvement platform Common and scalable back-office processes...
Processes Going Paperless…                                                                                Delivery        ...
Request & Paper driven processes    Something that most organizations have in common• Processes run manually and without a...
Key benefits to transforming processes   Automate and control processes and master data   Lower costs in your core service...
Traditional AP Process is broken… No controllable & measurable platform for improvement Supplier noise (Queries and Follow...
A reality check on cost reductions Invoice elimination & consolidation strategies Impact on pricing for poor DPO – P2P ine...
Mitigate risk by partnering with Experts Importance of partnering with AP specialist/veteran Leverage investment for conti...
Process efficiencies & effectiveness… Reduced processing costs within AP and the wider business Standardise processes, imp...
AP Automation pays dividends… Enabling Supply Chain Financing Duplicate payment / Credit recovery capability GST benefit o...
It’s a Journey…The migration to Top-Performer is a journey attainable through Strategy, Process                Optimisatio...
AP is only the beginning for SSC automation  Transitioning from processing to a value-add partner  Supporting key strategi...
Key Points to take home Business process automation is a journey Value in creating a controllable, measurable platform for...
Questions            0                Mastering SAP Financials 2010
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Shifting Gears – Driving Efficiency

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Using innovative automation technology and solutions for better performance in your SSC

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Shifting Gears – Driving Efficiency

  1. 1. Shifting Gears - Driving Efficiency: Using innovative automation technology and solutions for better performance in your SSC CIARAN MARA PROCESS SOLUTIONS MANAGER ORICA Mastering SAP Financials 2010
  2. 2. Overview Global Trends Value, Advantages & Opportunities of SSC’s Where to begin, Enhancing your SSC with Partners The challenge of Change Management Questions Mastering SAP Financials 2010
  3. 3. Introduction 15 years in finance, focused on process improvement in SSC’s. Implemented Reporting & Scanning systems in Australia, New Zealand,Singapore, Canada & USA for Shared Service Centres. Project Managed, Trained, Conducted Change management,Communications and implementations of 5 Readsoft Scanning solutionsGlobally with Orica and one Back end scanning solution. love my Rugby Union, Travel and experiencingDifferent cultures Mastering SAP Financials 2010
  4. 4. SSCs becoming increasingly strategic… Deloitte 2009 Global SSC Survey Results “Companies are continuing to expand their SSC operations – we see the pace of activity and global deployment...at an unprecedented pace” “Largest increases in participation over 2007 were in Financial Services, Transportation and Public Sector industries” The Hackett Group “Shared services are becoming more strategic. “Link to strategy” is a driver for shared services” and “76% of SSCs rate Finance as top function” “World-class finance organisations have reduced cost of finance from 1% to 0.59% of revenue from 1998 to 2008” (2008 Finance Benchmark) EquaTerra “Experience in both the private and public sector indicates that shared services can deliver 20 to 70% savings” Mastering SAP Financials 2010
  5. 5. High level Drivers for SSCs Implement a consistent, harmonized set of best practice business processes across a region Standard business processes and transparent information allows for easier and faster integration of acquisitions Improve process efficiency & effectiveness by leveraging scale Mastering SAP Financials 2010
  6. 6. Competitive Advantages of a SSC Mastering SAP Financials 2010
  7. 7. Automation is key to driving value in SSCs Business process improvement platform Common and scalable back-office processes Governance and compliance Efficiency and effectiveness Predictable performance Mastering SAP Financials 2010
  8. 8. Processes Going Paperless… Delivery Financial posting notes requestsPurchase to Pay Requisition Order Confirmation Delivery Note Incoming Invoice ACCOUNTS Payment Approval PAYABLE DATA CAPTURE FINANCEMaster Data DATA CAPTURE Vendor Master CONTROLLING Cost Center Profit Center Incoming RECEIVING invoicesOrder to Cash Customer Order PURCHASING Remittance AdviceFinance Requisitions Financial Posting Master data Corrections update/create requests Mastering SAP Financials 2010
  9. 9. Request & Paper driven processes Something that most organizations have in common• Processes run manually and without any• Processes run manually and without any way to control them • • Phone based service Phone based service way to control them • • Email based service Email based service•• Incorrect changes in master data Incorrect changes in master data • • Paper based service Paper based service•• People try to bypass established processes People try to bypass established processes•• Maverick procurement Maverick procurement•• People avoid using complicated systems People avoid using complicated systems•• Quality of service is low or varies in quality Quality of service is low or varies in quality • Slow processes • Slow processes and cannot be guaranteed and cannot be guaranteed • Expensive processes • Expensive processes • No transparency • No transparency They are full of business processes and those processes are often full • Wrong postings and excessive corrections • Wrong postings and excessive corrections of problems that cause additional • Low or no visibility into the process • Low or no visibility into the process expense or worse. • Difficulty in maintaining compliance • Difficulty in maintaining compliance • Department’s reputation in the organization • Department’s reputation in the organization is harmed is harmed Mastering SAP Financials 2010
  10. 10. Key benefits to transforming processes Automate and control processes and master data Lower costs in your core service areas Improve productivity throughout the process chain Improve service to the entire organization Increase visibility – measure what was previously unseen Ensure compliance both internally and externally Maximize the investment in your ERP Mastering SAP Financials 2010
  11. 11. Traditional AP Process is broken… No controllable & measurable platform for improvement Supplier noise (Queries and Follow-Up) Invoices arriving after Due Date for payment Missing and duplicate invoices (2%) Inability to take advantage of early payment discounts Moving from a “processing” to a “value-add” function Mastering SAP Financials 2010
  12. 12. A reality check on cost reductions Invoice elimination & consolidation strategies Impact on pricing for poor DPO – P2P inefficiencies Inability to leverage TWC improvement Re-work for Buyers/Procurement Cost of storage, photocopies, call and noise. Inefficient use of Procurement/Buyer time administering Inability to address true P2P inefficiencies Mastering SAP Financials 2010
  13. 13. Mitigate risk by partnering with Experts Importance of partnering with AP specialist/veteran Leverage investment for continuous improvement & growth Change Management R&D (future-proof) Mastering SAP Financials 2010
  14. 14. Process efficiencies & effectiveness… Reduced processing costs within AP and the wider business Standardise processes, improve AP efficiency and enhanced SLAs Improved control and scalability of AP process to support continuous improvement initiatives Reduction of costs through early payment discount schemes Improved invoice visibility and cash management Governance and compliance Mastering SAP Financials 2010
  15. 15. AP Automation pays dividends… Enabling Supply Chain Financing Duplicate payment / Credit recovery capability GST benefit of recognised invoices Efficient P2P process enables price savings for consistent on time payments Improved cash utilisation of improved forecasting – Funding and Cost of Debt improvement Mastering SAP Financials 2010
  16. 16. It’s a Journey…The migration to Top-Performer is a journey attainable through Strategy, Process Optimisation and Business Process Globalisation Silos Efficiency-focused Top-Performer Minimal metrics Decentralised Manual process Advanced 3-way match / all approvals Low technology enablement No SLA with customers Learning End-to-End P2P Performance Mgmt. & continue improvement Traditional Centralised / low-cost location Automated process Optimised transaction strategy High levels technology enablement Mastering SAP Financials 2010
  17. 17. AP is only the beginning for SSC automation Transitioning from processing to a value-add partner Supporting key strategic business initiatives Redefining roles, expectations and targets Change Management and committing to improvement Mastering SAP Financials 2010
  18. 18. Key Points to take home Business process automation is a journey Value in creating a controllable, measurable platform for continuous improvement SSCs have the opportunity to automate all paper and request driven processes Challenge for SSCs is in driving/supporting change management for “customers” Mastering SAP Financials 2010
  19. 19. Questions 0 Mastering SAP Financials 2010
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