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Tech Summit
London 2011
Get your priorities right: How to ensure you
consistently pay your global suppliers on time
by
Halliburton Energy Services
Eastern Hemisphere
Business Support Centre
Dubai, U.A.E.
2. Agenda
About Halliburton
Before 1999 – How were Invoices managed?
We needed a Change! Why?
Year 1999, What did we Change?
Why we chose this Strategy?
Walkthrough – From Invoice Scanning to Posting
Tracking of Unprocessed Invoices & Prioritisation
How effectively this Solution works with OCR?
Tangible Results of this Solution
Factors that helped to make the Change
If given a chance to do this again?
What if, we had not done this Change?
Questions
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 2
3. About Halliburton
Founded in 1919
One of the world’s largest providers of products and
services to the energy industry
More than 60,000 employees in approximately 80
countries
Serves the upstream oil and gas industry throughout the
lifecycle of the reservoir – from locating hydrocarbons
and managing geological data, to drilling and formation
evaluation, well construction and completion, and
optimising production through the life of the field
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 3
4. About Halliburton
Halliburton consists of two divisions:
– Drilling & Evaluation
– Completion & Production.
As of December 31, 2010, these two divisions accounted
for approximately $18 billion in Revenue
Guess how many supplier invoices had been processed?
1.7 million!!
How does Halliburton manage such a high volume?
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 4
5. 3 BUSINESS SUPPORT CENTRE LOCATIONS
DUNCAN, OK
DUBAI
PANAMA
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 5
6. Before 1999 – How were Invoices managed?
Invoices were stored & filed across different offices
Storage of these invoice papers incurred costs
Invoices would take several days (and even months)
before it was captured for data entry
Information are stored without digital support files
Complicated to trace invoices when filed/archived.
Difficult task to search for documents when queries are
received from vendors or auditors
It was an era of
Box Files, Papers, Snail Mails & Staplers!!
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 6
7. We needed a Change! Why?
Processing
– To manage High Volume invoices(1.7 million per year)
– Requirement for Centralized Processing to support various
countries (80 Countries)
– Increased Geographical Diversity
Efficiency
– Reduce AP Processing costs
– Improve the efficiency of processing invoices in a timely manner
Retaining Customer satisfaction
– Ability to pay Vendors as per agreed credit terms
– Better working Capital
Technology & Communication
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 7
8. Year 1999, What did we Change?
SAP was implemented as a global single instance
Filenet deployed to digitally store invoices
• Filenet is a document imaging software that is
used to store electronic copies of documents
Implemented Quillix along with MuWave Queue Utility
• Quillix is a web-based scanning software that is
used for scanning documents for storage in Filenet
• Muwave Queue Utility is a web-based tool for
managing the contents of Image Services Queues
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 8
9. Why we chose this Strategy?
1. Scanning, importing and indexing of documents easily
from anywhere in the world
2. User friendly web based applications
3. Allowed Real Time visibility of invoices
4. Accrual of unprocessed invoices made easy
5. Improve the controls effectively on AP process
6. Reporting capability to produce queue summary and detail
reports for viewing in Excel format.
7. Ability to move multiple images from one queue to another
in less than a minute.
8. Logs can be maintained for all queue transfers along with
user, queue and image number information.
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 9
10. Walkthrough – From Invoice Scanning to Posting
1 2 3
Barcode cover sheets define the Invoice is scanned into Quillix Electronic Image is created and
queue the invoices in the batch using Fujitsu scanners barcodes are attached to the image
will be routed to. Or as index values and placed in the
Barcode sheet is placed in front Soft copy files are uploaded into correct workspace Distribution
of the invoices Quillix using Web Import queue
5 4
Queues are managed and Routing program runs and
reports are generated using the reads index values off each
Queue Utility Tool. image. Router then moves
images to the correct
process queue for
processing.
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 10
11. e: r
si nclud D esigne
F eature ure P rocess ificatio
n
ual Ca
pt a ss
Vis um ent Cl
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T humb ec ognitio
n
aracte
r
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&
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nition (O
Recog gnition y Too
ls
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se Looku alidati er
Da taba ks and V ect ory us
pu t Mas ct i ve Dir
F ield In tration/A
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Group n.
atio
integr
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 11
12. dit
for: Re-R oute/E
Al lows t/Dele
te/
er
Que ue Ins
us y
Bus y/Unb Functio
ns
Queue ts
“Multi” nt Repor
Conte ity
Q ueue all Activ
Logg ing of Funct
ions
Full ccess
to
A
cured
Se
sed Admin
W eb-ba
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 12
13. Tracking of Unprocessed Invoices & Prioritisation
Queue Utility can generate report on unprocessed
images from all queues
Details include scanning & queue entry date
Images can be allocated for data entry prioritised by
oldest ones
Invoiceis it done areHalliburton?by
How Queues in Prioritized
Quick Fixed Process Process
Pay Queue Queue Only Queue
Rescan Resolution
Queue Queue
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 13
14. What were further enhancements?
OCR (Optical Character Recognition)
– A software operation that can “read” pixels on a TIFF
format File
Optura Workflow
– Document available for online coding and approval. This
workflow has been embedded in SAP
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 14
15. How effectively this Solution works with OCR?
Input Processed instantly in Dubai Output
Invoice scanned
from Australia
via QUILLIX
1010101010101010
01010
1010101010101010101
0101
10101010101010101010 1
101010101010101010 0
1010101010101010
1010 1
1010101010 001 101
101010101010101010 1
C E FI
FI
Scanned
L Extract X
invoices O & P
extracted from
C A SAP Workflow
FileNet
S Validate O Process
R Data R
S
I T
F Payment Same Day
Y or with
Next Payment Run
VERIFIER
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 15
16. Tangible Results of this Solution
Saving Trees (Corporate Sustainability)
Invoice image retrieving time reduced to 15 seconds
Invoice images could be retrieved from any part of the world
ROI in less than 6 months
AP FTE reduced by 30% by field locations
Approx. 15% cost saving on AP front-end activities
Manual Archiving is now a thing of the past.
Online visibility of unprocessed/problem invoices
Reporting instances are made faster and easier.
Employees morale is higher than before
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 16
17. Factors that helped to make the Change
Executive Sponsorship to make this Change happen
Globally, people accepted the need for a change
Specialized training & development for Employees
Halliburton’s commitment to the Technology Investment
Extremely dedicated resources
If given a chance to do this again?
Explore possibility of e-invoicing
Common vendor portal for delivery of invoices
Allow communication between Halliburton & suppliers
with limited access to SAP
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 17
18. What if we had not done this Change?
Cost per activity increases
Operational Impact
Cumbersome retrieval of documents
Overworked & unhappy employees
No visibility of vendor invoices
Increase in resources
Frustrated suppliers
Misplaced invoices
Reminds the era of
Box Files, Papers, Snail Mails & Staplers!!
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 18
19. Get your priorities RIGHT to ensure suppliers are paid
on time
Quillix, Filenet, Queue Utility – helps seamless invoice
processing for front-end and back-end
OCR Technology – Assists in posting of invoices timely
and promptly with less resources
Workflow – To ensure Non PO invoices are coded and
approved timely
All of these tools works perfectly with any ERP working
environment
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 19
20. THE ONE THING THAT MADE THE DIFFERENCE
TECHNOLOGY
© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 20