Benefits of Electronic Invoicing & Streamlined Procurement
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In the Networked Economy, collaboration between buyers and sellers, internal business units and Finance stakeholders on both sides of a transaction is crucial to the bottom line success of all parties. Real time visibility into shipment information, invoice status, and payment/cash flow opportunities provides finance stakeholders with the timely, actionable data needed to reduce risk, improve working capital performance and enhance cash flow. 2012 Ariba Commerce Summit in Chicago
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Benefits of Electronic Invoicing & Streamlined Procurement
- 1. Benefits of Electronic Invoicing and Streamlined Procurement: A Buyer's and Seller's Perspective Belinda Cordina, Procurement Director, Ecolab John Evarts, CFO, Mediafly © 2012 Ariba, an SAP Company. All rights reserved.
- 2. Belinda Cordina Procurement Director, Ecolab © 2012 Ariba, an SAP Company. All rights reserved.
- 3. The Ecolab/Ariba relationship Legacy Nalco Sourcing Directs and Indirects Evolved to be Total Cost RFI and RFP Sourcing process vs just auctions Buyer on the Ariba Supplier Network Project started as a visibility and DSO reduction project 140 suppliers connected- 60% of Drop Shipment orders and 35% of all orders Spend Visibility 4 source systems, approx 95% of global spend Critical in a revitalization of Indirect Spend management in Nalco business groups Contracts Loaded over 600 legacy contracts globally More than just a repository: electronic internal approval flow, executive contract summary, Docusign Legacy Ecolab Procure to Pay Internally branded as MyBuy About 20 catalogs, 1000s of non-catalog requisitions/POs, mandated “No PO, no Pay”
- 4. John Evarts CFO, Mediafly © 2012 Ariba, an SAP Company. All rights reserved.
- 5. Introduction to Mediafly October 9, 2012 © 2006-2012 Mediafly, Inc. | Confidential
- 6. Mediafly: Complete Mobility Solution © 2006-2012 Mediafly, Inc. | Confidential
- 7. How do we do it? Complete, Integrated, Future-Proof © 2006-2012 Mediafly, Inc. | Confidential
- 8. Nalco (Ecolab) Process Before & After © 2012 Ariba, an SAP Company. All rights reserved.
- 9. 3rd party shipments manual process •Can Nalco meet the requested delivery date? Customer Order CUSTOMER Invoice Purchase Order •Does price •When was the product match Invoice shipped? purchase •Quantity shipped? order price? •Is the price in the purchase order right? •Has the vendor received the order? VENDOR •Can the vendor meet the requested delivery date? 9
- 10. 3rd party shipments automated process •Automatic communication to sales on order status Customer Order CUSTOMER Invoice Shipment Information Order Confirmation Purchase Order •Easy to see and fix PO transmission failures •Price matches purchase order Invoice price. •Quantity •Vendor acknowledges orders matches goods •Vendor confirms/changes received quantiy. delivery date, quantity and/or price VENDOR (connected •Vendor confirms product through Ariba) shipment- Nalco invoices customer 10
- 11. Q&A
Editor's Notes
- We describe this solution as Complete, Integrated, and Future-Proof, and it consists notionally of 3 components. Media Bridge, Cloud Media Platform, and Branded Media Applications
- Challenges:Lack of visibility into order status of transactions involving third-party shipments 5% lost POs impacted business results Customer invoicing delays led to extended DSO 7 people in customer service tracking order confirmations/shipments by phone Difficult to track ASNs in multiple formats such as fax, email, and other; caused billing delays Customer satisfaction issue: could not communicate real-time shipment information to customers Vendor credit holds due to invoices being lost or blocked causing raw materials or equipment not being shipped to customers
- BenefitsIncrease Customer SatisfactionImprove on-time deliverySupplier compliance processIncrease sales timeReduce Manual Processes/Reduce DSOBuild connectivity to suppliersReduce lag time to customer invoiceEliminate non-value work 3rd party/fieldImprove 3rd Party Order VisibilityEnhance Open Order ReportReceive PO Conf and ASN electronically