Accelerating E-Invoice adoption and roll-out with SAP

Transcription

1 Accelerating E-Invoice adoption and roll-out with UK & Ireland User Group Conference th 22 nd November 2011 Frank Ruland, Line of Business Solutions, AG

2 Agenda How E-Invoicing for Compliance Simplifies Financial Operations Introduction and Solution Overview Customers are Realizing Substantial Value with Solutions for E-Invoicing Questions and Answers

3 Businesses Are More Reliant on Their Network of Partners than Ever Before Trend #1: Increasing Complexity of Network New markets, mergers and acquisitions, global supply chain Increasing number of business partners and subsidiaries Interfaces 25,000 20,000 15,000 Trend #2: Accelerated Speed of Business New product and services introductions; new suppliers and partners Rapid partner on-/off-boarding due to changing market conditions 10,000 5, Partners 1,000 + Forrester Consulting, Joint Industry EDI/B2B Survey, March 2010 thanks to an ever-more-globalized business environment, more large companies now see attractive market opportunities beyond their borders, further highlighting the need to establish an efficient B2B infrastructure with local subsidiaries and suppliers. Gartner, 12 October 2010, Market Trends: Application Infrastructure and Middleware Software, Worldwide,

4 Industry Data Confirms Paper-based Processes Are Inefficient and Expensive PayStream Advisors, IWA Summit Billentis based on 1.5 page invoice and 60/hour staff cost

5 Error-Prone Paper-based Processes Are Inefficient and Can Damage Relationships with Customers and Suppliers 1. Customers Electronic billing mandates Format and countryspecific requirements Accounting/ Finance Purchasing 3. Purchasing Resolving problem invoices Missed cash discounts 2. Accounting & Finance No universal view of departmental invoices High cost per invoice CFO 4. Suppliers Lost paper invoices Late payments slow cash flow 5. CIO/CFO Increase compliance risks Higher cost of capital, lower productivity

6 E-Invoicing Increases Transparency, Productivity, Compliance and Business Partner Satisfaction 1. Customers Comply with electronic billing goals Automate processes to improve supplier e-invoicing Customers Accounting/ Finance Purchasing 3. Purchasing Increased productivity Greater percentage of cash discounts captured Lower cost of goods purchased 2. Accounting & Finance Consistent payments across countries and organizations Lower cost of capital CFO 4. Suppliers Improved vendor relationships Reduced DSO Improved cash flow 5. CIO/CFO Suppliers Global visibility Stronger controls, audits and improved compliance Integrated systems and processes

7 Going Paperless Can Improve Speed, Accuracy, and Compliance While Reducing Costs CFO Outbound E-Invoicing (E-Billing) Inbound E-Invoicing How do I improve our financial operations processes? Improve productivity Compliant record keeping Complete audit trails How do I provide my customers with paperless bills? Reduce cost per outgoing invoice Eliminate paper and postage Speed compliance with customer format mandates Shorten customer-to-cash cycle times How can I standardize and accelerate invoice receipt and retention? Eliminate manual data entry errors: reduce disputes, rejections and re-submissions Eliminate manual reconciliation effort Increase on-time payment percentage

8 Outbound E-Invoicing E-Invoicing for Compliance Outbound E-Invoicing Digitally Sign Invoice Send PDF via Send EDI Check Legal Compliance Solution Provide invoices to your customers in the format they demand Provide compliant digital signatures Improve productivity of A/R department accounting shared-service Differentiators Integration: Integrates with back-end systems for accounts receivables Support: Solution is covered with enterprise support from and Crossgate Scalability: Ability to dispatch large volumes of invoices from shared-service centers

9 Inbound E-Invoicing E-Invoicing for Compliance Inbound E-Invoicing Receive Electronic Files Verify Compliance Transmit Data to ERP Solution Receive electronic invoices via standardized interfaces (PDF invoice, EDIFACT D96A, signature/verification file) Automatically verify/perform all required format, content and signatures Seamlessly transfer invoice data to ERP for further processing, approvals, and archiving Improve productivity of accounting department /accounting sharedservice Differentiators Internal Control: Verify documents and signatures for all incoming invoices according to compliance requirements in over 38 countries Direct Access to Global Partner Network: Leverage s world class network of business partners to accelerate adoption by your suppliers and increase percentage of electronically received invoices Straight-through invoice management: Transmit invoices to ERP and invoice processing systems and archiving, improving quality by eliminating manual intervention

10 Exchange Electronic Invoices with Any Business Partner in Any Format Signed PDF + XML Your Company EDI Supplier 1 Customer A Supplier 3 Supplier 4 EDI E-Invoicing for Compliance Signed EDI Customer C Customer D Supplier 5 VAN B2B Hub Customer E Supplier 2 EDIFACT Archive Electronic Signature Verification signed PDF Customer B Archive Trust Center

11 E-Invoicing for Compliance in the Accounts Payable Process HUB HUB HUB Hubs and Portals EDI PDF/ E-Invoicing for Compliance Digital Signature Validation Supplier idoc + supporting docs (e. g. signature, verification protocol) Invoice Mgmt in ERP Payment Optional ERP (FI/AP) Archiving by OpenText SRM Document Archiving & Viewing

12 E-Invoicing for Compliance in the Accounts Payable Process HUB HUB HUB Hubs and Portals EDI PDF/ E-Invoicing for Compliance Digital Signature Validation Supplier idoc + supporting docs (e. g. signature, verification protocol) Optional Invoice Mgmt by OpenText Payment Automation, process support ERP (FI/AP) Archiving by OpenText SRM Document Archiving & Viewing

13 E-Invoicing for Compliance in the Accounts Payable Process HUB HUB HUB Hubs and Portals EDI PDF/ E-Invoicing for Compliance Digital Signature Validation Supplier Fax Optional idoc + supporting docs (e. g. signature, verification protocol) Document Scan OCR Option by OpenText Invoice Mgmt by OpenText Payment Paper Invoice recognition ERP (FI/AP) Archiving by OpenText Document Archiving & Viewing SRM

14 E-Invoicing for Compliance in the Accounts Receivable Process ERP Billing Data 3. E-Invoicing For Compliance by Crossgate 1. Digital Signature Validation Archiving (optional) 2. Archiving (optional) Compliance Checks PDF multiple outbound options EDI EDI Customer A Hub Customer B

15 Customers are Realizing Substantial Value with Solutions for E-Invoicing

16 ÖAG is an affiliated company of Wolseley plc. Austria s biggest wholesaler and distributor of plumbing and heating supplies Approx. 800 employees Total turnover EUR 300m per year (2010/2011) 83 branches located all over Austria since 2007 Cooperation with Crossgate since 2009

17 Internal arrangement was not satisfactory Crossgate Eurolog PGS Two-tier selection process Main selection reasons: Offering and pricing (the only provider with all EDI processes plus E-Billing) Cooperation with Best customer liaison and support Most transparent charging method FSE OB10

18 Outbound Initial situation ~ invoices per month via post ~ 1 million invoices per year via post ~ invoice recipients E-Invoicing for Compliance by Crossgate PDF document with qualified electronic signature 3 rd party verification protocol erollout Portal / first contact to customers

19 Inbound Initial situation ~ 16,000 incoming invoices/month ~ 1,700 suppliers Information Interchange by Crossgate EDIFACT format from suppliers Communication from Crossgate via IDOC EDI (+ PDF document) + monthly statement Plausibility check automatic clearing

20 Outbound 2,500 customers now use E-Billing (invoice quota ~ 20 %) Packed in ZIP-file later one document per Fiscal aspects problematic (uncertainty) Intense initial customer support Internal processes and communication very important

21 Inbound 14 suppliers live (invoice quota ~ 20 %) 31 in pipeline Order references need to be correct (order number, position number, article codes...) Test-phase crucial for success

22 Cost reduction Printing/paper/postage costs ~EUR /year* ~EUR /year^ Faster delivery via / earlier payments Storage of invoices Competitive advantage with automatic E-Invoicing for our customers Reduction of paper usage (approx. 4 trees + ) * Resource: Business case ÖAG AG ^ Savings potential 3 EUR/invoice with handling costs (resource: Accenture) + 1 tree = sheets of paper (

23 Reduction of errors from OCI (automatic EDI) Reduction of handling time (could be up to 100 %) Cost reduction Employee costs (~EUR /year) Master data quality

24 Customers are Realizing Substantial Value with Solutions for E-Invoicing 100% secure and compliant e-invoicing Considerable cost savings and optimization of processes Transparency along the whole process 1,100 Dealers within 7 Weeks Easy and rapid entrance to e-invoicing Achieved and maintained a 100% Customer retention rate Experienced a corollary 5% productivity improvement in credit and receivables Achieved 20% to 50% reduction in bad debt risk, and 20% to 40% faster access to information 10% to 20% reduction in time needed to collect credit information and enter data prior to a sale

25 What Does This Mean for Your Business? Top Executive Issues Financial Operations Ensure compliance in all relevant countries Meet sustainability goals by driving paperless business networks Increase productivity so staff are focused on activities that add the most value Payables Achieve invoice processing cost reduction, maintain accuracy and capture more discounts Pay vendors on time and accurately, improving vendor relations Receivables Reduce Days Sales Outstanding (DSO) with automated e-billing processes Reduce cost of receivables processing while ensuring timely invoice delivery to customers

26 Manage Costs and Complexity NOW, without Compromising the FUTURE Manage Costs + Manage + Complexity Manage Change Simplify landscape by eliminating point to point integrations; rich content repository of partners Extend the value of your existing investments without rip/replace; Minimize exposure to risk of/process breakpoints; ensure compliance and regulations Fast start with predictable costs Consistent foundation that enables you to connect, transact, collaborate with a collaborative business network at the speed of business Technology Line of Business CXO Now Future Value Engineering and Team Analysis

27 Easy to Connect: Instant Access to an Open, Industry-optimized Global Business Network with 60,000 Global Partners LSP Bank Others YOU Production LSP Mfg. Financial Services Business Network 60,000+ Partners Connect Transact Collaborate Warehouse Distributor Retailer Government Supplier Eliminate expensive point to point connections with Crossgate Content repository

28 Easy to Extend: Deep B2B Pre-integration within Business Suite for Mission Critical Processes and Non- Solutions and Non- Solutions Suppliers Crossgate Crossgate End customer Financial Services, Government Orders In-/Outbound Netweaver Process Integration Delivery JIT In-/Outbound Warehouse Production sites Logistics Service Providers and Carriers Orders Ack. In-/Outbound Invoice In-/Outbound ASN In-/Outbound Delivery Forecast In-/Outbound ERP Supply Chain Management Procurement Inventory Report In-/Outbound Self Billing Invoice In-/Outbound Shipment In-/Outbound Enterprise Service Financial Services, Government Logistics Service Providers and Carriers Outsourced Manufacturers Remittance Advice In-/Outbound Other Solutions 3rd Party Solutions Other Processes, Docs, etc. Retailer Leverage Ready-to-run B2B content maintained over lifecycle

29 Thank You! Contact information: CROSSGATE Stand S-41 King s Suite Frank Ruland Director, Line of Business Solution, Business Networks and B2B AG [email protected]