Transforming Accounts Payable. Evolving from Administra8ve Necessity to Strategic Partner

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1 Transforming Accounts Payable Evolving from Administra8ve Necessity to Strategic Partner

2 AGENDA Setting the Stage: Perception is Reality Key Concepts The Transformation Process The New Reality 2

3 01 Setting the Stage: Perception is Reality 3

4 Questions and Answers What is Accounts Payable (AP). What does an AP department do? q a liability to a creditor, carried on an open account, usually for purchase of goods and services Webster s dictionary q A cost center in a company or organization q Pay bills, key data into AP system, cut checks q Answer calls from vendors How is AP perceived by others in an organization? q Clerical, Administrative. q Date entry team, manual processes q Overhead, back-office q Negative - blamed for errors, late payments, etc. Perception is Reality 4

5 Is this YOUR Reality? 5

6 Shifting the Perception and Role of Accounts Payable Organiza(ons are challenged with process inefficiencies and lack visibility into the Invoice processing lifecycle. Paper based processes burden the departmental managers and workers throughout the workplace and prevent them from concentra(ng on their core competency. Strategic Collabora.ve Manual Data Entry Tac-cal Administra.ve Automa-on Visibility Suppor-ng Knowledge sharing Data Efficient AP Clerks AP Analyst Collabora-ve Intelligence/ Analy-cs Performance Driven Business Process Efficiency..Transformation Repe--ve Inefficient Archaic Procure- to- Pay Working Cap Op-miza-on Supplier Management Treasury vision Procurement Insight 6

7 02 Key Concepts 7

8 Key Concepts Business Process Efficiency vs. Transformation Accounts Payable Maturity Model Steps to AP Efficiency and Transformation See the vision begin the transformation CONFIDENTIAL 8

9 Business Process Efficiency vs Transformation Business Process Efficiency is achieved by streamlining a company's core processes, through automa-on and process op-miza-on, to respond to internal and external customer in the most cost effec-ve manner while ensuring high quality service and support. 9

10 Accounts Payable Automation Maturity Model 1 Paper based Entirely paper-based invoice receipt Manual indexing and storage in file cabinets Manual data capture; Manual approval workflow and reporting 2 Image Enabled Paper-based invoice receipt with front- or back-end imaging Physical and electronic storage of document Manual data capture from paper or image; Manual reporting 3 Workflow Driven Invoice receipt via front-end imaging and some EDI Auto-indexing; Use of OCR/ICR; Automated approval workflow and reporting Use of enterprise content management (ECM); Minimal physical storage of documents 4 Efficient EDI, e-invoicing, ERS with minimal paper; ECM Intelligent data capture with PO matching; Automated approval workflows, routing and reporting 5 Op-mized Paper free, touch free; Auto-indexing; ECM Real time reporting and online dispute management Exception based workflows 10

11 Steps to AP Efficiency and Transformation

12 03 The Transformation Process 12

13 AP is an Administrative Function Minimal Automa-on Limited Repor-ng and Analy-cs Limited Visibility Long Cycle Times High Costs Staff focus remains on processing, vendor inquiry, etc. Back- office 13

14 AP is a Collaborative Team Significant Automa-on Business Process Efficiency Enhanced Visibility Improved Cycle Times Significant Cost Savings KPIs Staff Op-miza-on/Analysis Enhanced Repor-ng and Analy-cs Exception Rate Cycle time (ready to pay) Automated Data entry Straight through processing Paperless processing Invoices/ FTE 14

15 AP is a Strategic Partner End to End Process Visibility Spend Repor-ng/Analy-cs Mobile approvals, access Vendor Portal Self- Service PO Flip Dynamic Discoun-ng Revenue genera-on/profit center Exception Rate Cycle time (ready to pay) Automated Data entry Straight through processing Paperless processing Invoices/ FTE 15

16 04 The New Reality 16

17 Remember Business Process Improvement (BPI) and automation will result in cost savings and a Collaborative AP Function True transformation goes beyond BPI and cost savings it is a journey enabling AP to become a Strategic Partner The shift in the perception of AP will require a dedicated and well planned Change Management Strategy and Plan It is critical to continuously assess your AP staff. Train or re-allocate resources to ensure skills are aligned with transformed function Perception is Reality 17

18 Questions and Answers - Revisited What is Accounts Payable (AP). What does an AP department do? q a liability to a creditor, carried on an open account, usually for purchase of goods and services Webster s dictionary q A potential profit center q Facilitates invoice exceptions q Conducts spend analytics q Drives Cash Flow Management How is AP perceived by others in an organization? q Collaborative, Strategic Partner. q Analytical q Value added function Perception is Reality 18

19 Canon Overview: A Global Leader CANON INC. $36 billion in global revenue Third overall in U.S. patents registered in 2013 One of Fortune Magazine s World s Most Admired Companies in 2013 Canon U.S.A. headquarters in Melville, NY CANON BUSINESS PROCESS SERVICES BPO subsidiary of Canon U.S.A. Corporate office in NYC; offices throughout U.S. 800 client sites; 4,800 professionals Business Processing Centers - U.S. and offshore Opera-ons in U.S., Canada, Puerto Rico, Philippines, Europe and Asia Stop by our 2015 Booth to learn more, booth #

20 Thank You Complete BPO Solu.ons Coverage Thank You for your -me. Advancing Business Performance to a Higher Level

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