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Shell case study: Enabling straight-through touchless processing of 500,000 invoices
 

Shell case study: Enabling straight-through touchless processing of 500,000 invoices

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Steven Breaden, Senior Manager, Expenditure - Technical Strategy, will share exactly how he implemented new technologies, what key obstacles Shell had to overcome and how exactly AP staff are ramping ...

Steven Breaden, Senior Manager, Expenditure - Technical Strategy, will share exactly how he implemented new technologies, what key obstacles Shell had to overcome and how exactly AP staff are ramping up efficiency now there are far fewer exceptions to handle.

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    Shell case study: Enabling straight-through touchless processing of 500,000 invoices Shell case study: Enabling straight-through touchless processing of 500,000 invoices Presentation Transcript

    • How to Enable Straight Through Touchless Processing of 500,000 Invoices Toning Up PtP to Attain Touchless Procesing, 9th June 2010 Steven Breaden Senior Manager, Expenditure – Technical StrategyCopyright of SBSC Glasgow Month 2010 1
    • Introduction.....Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 2Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • About Shell We are active in more than 90 countries Worldwide, we have 101,000 full-time employees We produce around 3.1 million barrels of oil equivalent per day Our fuel retail network has around 44,000 service stations We sell transport fuel to some 10 million customers a dayIn 2009… We generated an income of $12.7 billion; Invested $31.7 billion in capital; and Spent over $1.1 billion on R&DWe are listed on the stock exchanges of Amsterdam, London and New YorkSource: 2009 Annual Report Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 3 Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • BUSINESS OVERVIEWCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 4Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • SHELL STAFF BY SEGMENT AVERAGE NUMBERS 2009 Rounded to the nearest thousand Upstream 23,000 Downstream 62,000 Corporate 16,000 Total 101,000Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 5Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • The SBSC Finance Community 650 750 Glasgow (1998) FTE FTE Krakow (2006) Athens (2006) 1500 1500 FTE 40 FTE Chennai FTE (2007) Manila (2004) Kuala Lumpur (2000) 750 Cape Town (2007) FTE 40 FTECopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 6Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • IntroductionIn order to automate the AP process, there are four key areas we havehad to consider in our journey from <10% Straight Through Put (STP)towards our aspirational target of 50% of documents going throughBrainware reaching a Post / Park State within the ERP automatically. Our 4 Key enablers to automation are: Strategy People Technology Data Automation is not solely an IT project!Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 7Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Introduction (continued) Straight Through Processing (STP): Processing a document to Park / Post state within ERP without manual intervention 2009 - Prior to Brainware V4.1 implementation, STP <10% 20 Invoice per FTE per day processing efficiency target 2010 – 3 Months after Brainware V4.1 implementation, STP 20% 35 Invoice per FTE per day processing efficiency target 2010 – End of year STP target of 50%Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 8Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • StrategyCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 9Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • StrategyStrategy touches on all elements of automation. It will almost certainly have an impact on peoplein your organisation, and the types of automation technology you adopt. It provides a roadmapfrom where your organisation is in it’s Automation Journey, to where you need to get to.It’s important to have a clearly defined strategy at the outset of an automation project, and toadapt your strategy through out your journey. Some key things to consider : Business Rules – No one knows your business like you do Defining Business Rules for automation need to be the first point on your project plan. There is no “One Size Fits All” technology for AP. Many organisations have a combination of two or three solutions in place to achieve automation targets. In shell we have implemented Brainware, SAP Workflow, E-Invoicing and ERS to drive up automation NAME HERE Copyright of INSERT COMPANY Up to two lines if required INSERT or DELETE CONFIDENTIALITY Month 2010 10 Go to View/Slide
    • Strategy It is important to clearly match technical solutions to vendors. Legal Fiscal Requirements – They are either an enabler or blocker to automation, and need to be identified up front. Internal organisation – Role mapping / team structure are enablers in successful automation Benchmarking and Networking – It’s important to find out what everyone else is doing. Structure is required in delivering strategic projects. Within Shell we have adopted the “Lean Sigma” methodology to support strategy In today’s office, there needs to be a robust strategy for eliminating paper based invoicing. It’s a simple formula - Paper = People!Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 11Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • PeopleCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 12Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • PeopleDuring any automation project there are a number of people and relationshipsthat need to be considered and developed to ensure success.Key customers and stakeholders to consider include: CP & Finance Senior Management Project and Technical Staff Accounts Payable External Customers / VendorsCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 13Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • People CP / Finance It is almost impossible to drive implementation of automated solutions without end to end buy in. Within Shell CP, own the relationship with the Vendor, as such CP buy in is essential to the success of any of our automation projects Organisationally, it is important to ensure CP / Finance goals are aligned to those of the AP organisation – automation projects need to be worked in partnershipCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 14Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • People Senior Management Key enabler in an automation project, buy in needs to be secured as early in the project as possible Visible support of initiatives is essential in ensuring organisational buy in, focus and support of your project Manage expectations – goals, objectives and deliverables of the project need to be identified and agreed early in the project AP Automation is a journey – Senior Managers need to be committed to all aspects of the project – timelines, automation targets, resourcing requirements of the project - in order to deliver long term success.Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 15Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • People Project and Technical Teams An initial project team is required to deliver the project - it is essential that this has end to end process representation A Technical team will be required to support post roll out. Members of this team need to have a knowledge of the deployed technology, coupled with high level knowledge of the E2E process Within Shell we have also established a Technical Strategic Team to focus on driving up efficiency within our process and to bridge the gap between CP, Finance and AP.Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 16Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • People Accounts Payable In order to roll out any new project you will need the support of AP This can be a difficult relationship to manage, the ultimate aim of automation is to increase efficiency and typically reduce headcount / FTE within your process. AP are required to test and validate automated solutions, and also operate the system post implementation Automation projects can be an opportunity for AP staff to develop project experience Experience gained through the process can lead to other opportunities within the organisationCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 17Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • People External Customers / Vendors Solutions need to be workable for your Vendors Automation should simplify Vendor payment It is essential to consider current ways of working with Vendors when rolling out an automation project. It is also critical to develop the relationship with 3rd party automated solution providers. They need to understand your business and goals – you need to understand what they can deliver. Open and honest communication is a must!Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 18Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • TechnologyCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 19Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • TechnologyCurrently within Shell we utilise the following technologies : ERS Brainware (OCR) Technology PDF Functionality SAP Workflow E-InvoicingCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 20Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Technology ERS Shell currently have vendors on boarded on ERS Benchmarking statistics show that even with Top Quartile and World Class Organisations, only around 27% of transactions are handled via ERS Currently Shell transacts in the region of 500,000 transactions via ERS ERS is a key part of Shell’s automation strategy, however it is clear that other technologies in this space are required to drive us to top quartile AP performance.Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 21Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Process Flow – Brainware Automated Semi Automated Flow FlowReceive Invoice Mail sort / Scan (PDF) PDF Paper Invoice“Scan” Invoice Upload Document to (Physically / Image RepositoryElectronically) “SCAN” OCR / Verify Process in Verifier & Document BRAINWARE ERP Exceptions V4.1 Verifier SAP WF Exception sSAP Workflow / Process ERP Exceptions Exception Item SAP WF Exception s Pay Vendor Pay VendorCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 22Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Technology Brainware (OCR) Technology We have recently upgraded to V4.1 of Brainware – Global Retrofit took place Feb 23rd 2010. Aspirational targets for yr end 2010 of 90% Extraction 50% STP to Park / Post in ERP Currently achieving 80 % Extraction 20 % STP to Park / Post in ERP At present, approximately 1,000,000 invoices are routed though Brainware per year, as such Brainware plays a key part in our automation and efficiency targets The technology allows us to simplify exception handling in the ERP Reduced language requirements – key to Shell as given global nature of our business Apart from FTE efficiency, we also use Brainware to drive compliance, and to add control within the AP processCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 23Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Technology PDF Functionality Almost 100% of invoices processed via Brainware at present are submitted as paper documents to one of our scanning hubs With Brainware V4.1 we have implemented the Exchange Connector Technology to automate PDF upload to Brainware We are currently rolling out PDF functionality to vendors PDF invoicing is a key enabler in driving up efficiency in the organisation In today’s economic climate, it is also an attractive option to suppliers, reducing invoicing and administration cost and speeding up vendor payment.Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 24Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Technology SAP Workflow We use a SAP Workflow solution This has been customised to maximise automation in the process Our SAP WF Solution supports and is supported by our Brainware implementation As part of the V4.1 Brainware roll out, we have revised our ERP / WF business rules and matching logic This allows checks such as Vendor Derivation and PO Line Matching to take place before a document is created within SAP Automatic posting of invoices with 3 Way Match Logic implementedCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 25Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Technology E-Invoicing Shell is currently reviewing it’s e-invoicing strategy The expectation is that a robust E-Invoicing Strategy could supplement current solutions and drive efficiency to 80+ Invoices Per FTE per day There are approximately 400 E-Invoicing providers in the market offering varying degrees of automation from PDF invoicing through to fully integrated solutionsCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 26Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • DataCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 27Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • DataData is another key component of any automation project.Before any automation project, data is required to help formulate strategy – andvalidate results. Some data to consider include: High Volume Vendor reports Spend analysis PO vs Non Po transactions FTE efficiency Compliance within the business Benchmarking DataCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 28Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • DataIn order to gauge where you are on the automation journey and to identifyareas for improvement it is important to have data and a suite of reportscovering a number of metrics at the following levels:• Operational• Managerial• StrategicWithin Shell, we have developed various reports to analyse and driveAutomation particularly around our recent Brainware implementation.Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 29Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Data Operational Metrics: Extraction Report SAP Error Message Report Processing Stats Line Item ExtractionCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 30Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Data Extraction ReportingCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 31Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Data Managerial Metrics: Straight Through Put Report FTE Processing Efficiency Cycle Time Report Universal Work List / Escalation ReportCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 32Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • DataSTP ReportCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 33Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Data Strategic Data: PDF Volumes Extraction Report SAP Error Message Report FTE Efficiency MetricsCopyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 34Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Summary Currently achieving 20% STP to Park or Post via Brainware against a 50% target just 3 months after go live on V4.1 Brainware extraction is currently at 80% against a year end target of 90% Lessons Learned: Remove Paper! Business Rules are key to success Straight Through Put – One phrase, many definitions!Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 35Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • After!Copyright of INSERT COMPANY NAME HERE INSERT or DELETE Month 2010 36Up to two lines if required CONFIDENTIALITY Go to View/Slide
    • Q&A