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Invoice and Payment Automation for Oracle EBS. Bottomline and Buzzi at COLLABORATE 10


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“Cementing” A Smarter Strategy for AP Automation: Buzzi Unicem Goes Digital for Invoicing & Payments.

For more than 100 years Buzzi Unicem has delivered cement aggregates and other raw materials to customers around the globe. In this presentation, Buzzi shares their successful model for streamlining accounts payable with document and payment automation solutions integrated with Oracle E-Business Suite, including AP invoice capture, workflow and storage, as well as their experience with Paymode-X the industry’s largest and fastest-growing online payment network.

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Invoice and Payment Automation for Oracle EBS. Bottomline and Buzzi at COLLABORATE 10

  1. 1. “Cementing” A Smarter “C ti ” S t Strategy for AP Automation: gy Buzzi Unicem Goes Digital for Invoicing & Payments with Oracle® E Business Suite E-Business Michael Parker Chris Luoma Buzzi Unicem Bottomline Technologies VP Information Systems Director, Product Marketing
  2. 2. Agenda • Introductions • Buzzi Unicem – AP Invoice Challenges • AP Automation Implementation Process • Lessons L L Learned d • AP Automation Benefits • Q&A
  3. 3. It’s Still a Paper-Based World “95% of AP departments said they are still receiving the majority of their invoices as paper via the mail ” paper, mail. Source: IAPP AP Automation Study, 2009
  4. 4. Where’s the Operational “Pain” for AP?
  5. 5. Eliminate “P i ” Th Automation Eli i t “Pain” Thru A t ti Supply Chain Collaborative • 100% e-Invoices • Order-to-Pay Automated • Auto Matching • International Payments • Rules Based Approval • SWIFT TSU Workflow • Supplier Self-Service Manual • Front End Imaging • Dispute Resolution • Supplier On-boarding • Centralized AP • OCR & Key From Image • Exception Routing • Ad-Hoc Discounts • Hand-Written Checks • Document Preparation • Electronic invoices and Routing • Supply Chain Finance • Scan & Archive • Data capture as a • Check Printing managed service • ePayments • Manual Retrieval • Electronic Payments • Remittance presentment • Cash Management • Manual Approval
  7. 7. Business Overview  Headquarters - Bethlehem PA Bethlehem,  5th Largest cement producer in USA  ~8.7M tons per year  Wholly-owned by Buzzi Unicem SpA located in Casale, Italy (8th largest cement producer in the world)  Created in 2004 by RC Cement Company and Lone Star Cement merger  8 Production Plants  29 Distribution Terminals  7 Sales Offices  2 Ready Mix companies  1,600 Employees
  8. 8. Buzzi Unicem USA: Core System Landscape p • Oracle e-Business Suite 11.5.10 • Financials • GL/ AR/ AP/ FA • HR/Payroll • Order Management • eAM • Maintenance Planning • Purchasing • Inventory • Projects
  9. 9. Buzzi Unicem USA: Complementary System Landscape y p • Bottomline Technologies – DesignStudio – Custom Forms for Oracle applications – e.ComIntegrate g – Integration between Optio and Oracle – e.ComPresent – D Document St t Storage • SER Capture – Document scanning
  10. 10. Accounts Payable Challenges • Pre-AP Automation – Distributed invoice receipt process • Terminal and Sales offices locations – Managers code and approve invoices by hand – Mail to AP Department in Indianapolis or Bethlehem for data entry – Scanning for permanent recordkeeping • Plant locations – Managers code and approve invoices – AP Clerks enter into Oracle – Paper copy filed for recordkeeping – Regional Check Printing • Checks processed at either Bethlehem or Indianapolis p p locations
  11. 11. Accounts Payable Challenges • Issues – Lost Discounts • Time delay from receipt at terminal locations to entry into Oracle – Lost Invoices – C di errors Coding • Handwriting illegible – Duplicate invoices received • Managers faxed and mailed documents to AP – Incomplete support and documentation – No central repository for invoices
  12. 12. AP Automation Objectives • Reduce invoice-to-payment cycle – Improve discounts taken • I Improve AP throughput h h – Reduction in keypunching using OCR – Reduction in coding errors g – Elimination of “lost invoices” • Central repository of all invoices – Easy retrieval from within Oracle • Electronic settlement using Paymode-X™ network – Reduce check printing
  13. 13. Transform™ AP for Oracle + Paymode-X: Complete Order-to-Pay Automation
  14. 14. Transform™ AP from Bottomline: AP Automation Attributes • OCR Scanning (Optical character recognition) – Pattern developed for repetitive invoices • Reduction in keypunching • GL code filled by pattern • Front end routing Front-end – Routing to manager based on… • Pattern • Location – zip code • GL cost center
  15. 15. Transform AP Attributes - cont. • Invoice Approvals – Approval based on user dollar limits – Workflow routing to next approver • Embedded Image Preview – See both the document and the coding screen at the same time
  16. 16. Transform AP Attributes - cont. • Real-time Oracle interface – GL Auto filtering g • Coder can select only valid GL code combinations – Suppliers / Sites • C d presented with valid vendors and vendor sites Coder t d ith lid d d d it – PO by supplier • Open POs with received lines – Projects • Open projects and tasks
  17. 17. Transform AP Project Plan • Phase I – Non-PO Invoices • 29 distribution terminals – Invoices scanned centrally in Indianapolis – Routed to Terminal Managers for review, coding and g g approval – Invoices above limit routed to next level manager – Patterns established for repetitive invoices – Approved invoices moved to Oracle interface table • General & Administrative expenses – R t d t cost center managers for approval Routed to t t f l – Oracle projects related costs
  18. 18. Transform AP Project Plan • Phase II – Purchase Order-Based Invoices • 8 manufacturing plants – Invoices scanned centrally – Invoice matched to received PO lines – If invoice matches, moved to Oracle – Miscellaneous charge screen for freight, tax • 2 Ready Mix Companies
  19. 19. Transform AP Deployment • Terminal locations – Manager Logistics - Project Manager g g j g • “Train the trainer” approach • All sites active in 90 days • G General & Administrative expenses l Ad i i t ti – Bethlehem Headquarters • Cost Center Managers – Legal – Insurance – IT
  20. 20. Transform AP Deployment • Ready Mix Companies – Low volume – Limited number of users • Plant Locations – Plant by plant rollout – High volume / many users • 1st live site in April 2010 • Targeted completion by December 2010
  21. 21. Transform AP: Obstacles and Issues • Scanning – Operator issues p • Duplicate invoices • Multiple page invoices – Page breaks • Document alignment • Lack of technical understanding of the system – OCR Patterns • Requires precision setting the pattern • Requires quality invoices
  22. 22. Transform AP: Obstacles and Issues • Repository for invoices – Transform AP documents stored in Presenter • Access in Oracle through “Attachment” – Other scanned documents in e.ComPresent • A Access i O l th in Oracle through “Z h “Zoom B tt ” Button” • End user historical searches – Has invoiced been entered or approved? – Has invoice been paid?
  23. 23. Results • Reduced invoice-to-payment cycle – Average payment days reduced – Reduction in discounts lost • February 2010 – 0 discounts lost • Improved AP throughput – OCR recognition for routing - 60% • Central repository of all invoices – All invoices are scanned and stored digitally • Electronic Settlement using Paymode-X network – 45% of vendors being paid through Paymode X initiated ACH Paymode-X
  24. 24. Lessons Learned • Accounts Payable clerks need to become analysts • Users need more training in order to use search capabilities
  25. 25. Future Plans • Complete roll-out to all sites • Upgrade document storage to Transform Content Center – Single storage location for all documents • Link Oracle payment detail to Transform • Continue to enroll vendors in Paymode X Paymode-X network
  26. 26. Pay Smarter with the Largest & Fastest-Growing Electronic Payment Network g y • Multiple payment types & unlimited remittance detail sent through an easy-to-use online portal • The most fraud-proof electronic payment solution on the market • Integrates with existing financial systems, works with any bank • Any payment file type accepted • Over 95,000 network members and growing O 9 000 k b d i • Supplier adoption rates of as much as 70%, vs. only 5-7% for competitors • Over $300 billion in spend processed • Supplier on-boarding and authentication support from Bottomline • Software-as-a-Service Delivery Model means no upgrade fees or hardware to install
  27. 27. Bottomline Solution Overview Purchase P h Order Invoice Bill Lading Inspection I ti Invoice Invoice Cash Order Confirmed Sent/Arrival Way Bill Certificate Approved Paid Received Suppliers / Bank(s) Employees Payments Invoices IN IN Customers AR AP Invoices Payments Bank(s) OUT OUT Solutions Transform™ Output Transform ™ Process Center Transform™ AP Center C-Series™ Paymode-X™ Bottomline Active Spreadsheet Server™
  28. 28. Getting Payback from AP Working Capital Savings Capture 100% of available discounts Eliminate late fees Improve Supplier Relations Realize Greater Cash Visibility Improve Processes Reduce Paper
  29. 29. Questions…?
  30. 30. Thank You! For more information, please contact: Michael Parker Chris Luoma Learn More Online: b tt li /t f Stay Connected! Twitter: LinkedIn: