How To Get A Good Return On Your Money With Anap

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Letitia Underwood
3 years ago
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1 Case Study: How Automa*on Transformed AP at PG&E and Added Millions to the Bo;om Line Ben Shaﬀer, PG&E Markus Ament, Taulia Joe Hyland, Taulia

2 AGENDA Mee-ng Agenda Your likely current state and pain points Get be;er returns on your cash through automated discount capture Drama*cally reduce supplier inquiry calls by providing 24/7 visibility and supplier self services PG&E Case Study and performance metrics Solu*on Demonstra*on Ques*ons

reduce supplier inquiry calls by providing 24/7 visibility and supplier

3 TAULIA OVERVIEW The leading SaaS provider of supplier portal, e- invoicing and dynamic discounting software solutions TAULIA OFFICE LOCATIONS Worldwide Headquarters: San Francisco, CA European HQ: Düsseldorf, Germany Offices in Park City, Utah; New York and London Heritage: Industry experts with 20+ years of experience building market leading AP applications, including founding ReadSoft Invoice Cockpit (Ebydos) Representative Clients:

Offices in Park City, Utah; New York and London Heritage: Industry experts with 20+ years of experience

4 YOUR LIKELY CURRENT PAIN POINTS 1. Do supplier inquiry calls take up valuable *me? 2. Are supplier invoice discount opportuni*es missed? 3. Is there a be;er way to op*mize working capital?

5 TOP THREE SUPPLIER PAIN POINTS 1. Did you receive my invoice? 2. When will my invoice be approved? 3. Can you pay me earlier?

6 Suppliers are a Stakeholder, not Sales Target

7 THERE S A NEVER ENDING FRICTION BETWEEN BUYER AP AND SUPPLIER AR

8 THERE S A FUNDAMENTAL INEFFICIENCY IN THE FINANCIAL SUPPLY CHAIN Near-Zero Interest Rates + Cash-Rich Corporations = Investment Paradox

9 PLAYING THE WHAT IF GAME What if your suppliers could see the status of their invoices? What if you could pay your suppliers less and they would thank you?

10 BANKS BENEFIT FROM PAYMENT INEFFICIENY LARGE BUYER Invoice Approved on Day 5 Invoice- Net 60 SUPPLIER Invoices Customer 1 Buyer Earns 0.5% interest un*l due date 2 BANK Suppliers Factors at 20% APR 3

11 What if You Could Be The Bank?

12 SUPPLIERS FACE EXPENSIVE FINANCING OPTIONS Factoring: ~20-40% interest - Few Companies Qualify - Due Diligence Effort - Excep*onally expensive 3 Trillion 2 Trillion 1 Trillion CAGR* 25.3% 1 Source: Factors Chain International *End of year 2011 euro to dollar conversion rate used

Excep*onally expensive 3 Trillion 2 Trillion 1 Trillion CAGR* 25.

13 NOW YOU CAN REAP ALL THE BENEFITS 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 2% 10 Net 30 $ Hit- or- Miss Discount 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% Sliding Scale Discount $ $ 0% 0 10 Days 20 Days 30 Days 0% 0 10 Days 20 Days 30 Days Antiquated Discounting Dynamic Discounting

14 DYNAMIC DISCOUNTING REPRESENTS A TRUE WIN- WIN Enables buyers to save money and improve return on cash by paying suppliers early Enables suppliers to access less expensive financing alterna*ves by accep*ng!me- variable Dynamic Discounts

suppliers early Enables suppliers to access less expensive

15 Case Study: How Automa*on Transformed AP at PG&E and Added Millions to the Bo;om Line Ben Shaffer, PG&E

16 ABOUT PG&E Incorporated in 1905 Headquartered in San Francisco, CA Provide natural gas and electric service to approximately 15 million customers Service area covers 70,000 square miles in northern and central California from Eureka in the north to Bakersfield in the south Approximately 23,000 employees 2012 revenues of $15 Billion

70,000 square miles in northern and central California from Eureka in the north to

17 HISTORY OF AP AUTOMATION AT PG&E Mid 1980 s o Automated PO Invoice Approval o Interfaces for Tree Trimming, Telephone Billing, Claims, Workers Comp Mid 1990 s o P-Card o Additional interfaces o Positive Pay 1996 SAP with integrated Imaging o Almost all goods and services converted to PO s o Freight invoice payments outsourced to auditors o Electronic payments 2004 Web form buyer side entry for non-po invoices Taulia solution New E-Invoice provider o No supplier fees! o Dynamic discounting for ALL Po invoices o Single cloud-based supplier portal o OCR for paper Po invoice o P-Cards into Concur 1980 s today 1990 o EDI for PO invoices o Direct interface for Freight invoices Early 1990 s Integrated suppliers with on-line catalogs, EDI, and 2-way match 2002 Internet based E-invoices 2003 o Concur with credit card and receipt imaging for T&E o Dynamic discounts for PO E-invoices o New electronic interfaces o Credit card e-payments o Consignment Inventory o Automated wire transfers

for non-po invoices 2011 2012 Taulia solution New E-Invoice provider o No supplier fees!

18 AP AUTOMATION SUMMARY Invoices Direct Electronic Interfaces Automated PO Invoice Approval & EDI P- Cards with automated interface for accoun*ng & pay SAP ERP & Imaging System Online T&E with integrated corporate credit card Internet Portal & E- Invoices with Workflow for Non- PO Dynamic Discounts Consignment Inventory OCR Payments Posi*ve Pay and Posi*ve Payee ACH Electronic Payments Automated Wire Transfers file based Credit Card Electronic Payments

Internet Portal & E- Invoices with Workflow for Non- PO Dynamic Discounts Consignment Inventory OCR Payments

19 INVOICE VOLUMES PO Invoices 2012 Pct 2013 Pct Paper 55,661 14% 3% OCR 10,053 2% 12% Traditional VAN EDI 80,916 20% 3% E-Invoice Portal / Network 256,003 64% 83% Total 402, % 100% Non-PO Invoices Paper 3,222 10% 8% Buyer Side E-Invoice 29,298 90% 92% Total 32, % 100% Electronic Interfaces Online Employee T&E 86,503 P-Card Transactions 522,228 AP Total 1,417, ,200 (Excluding ESP s & CEER)

Paper 3,222 10% 8% Buyer Side E-Invoice 29,298 90% 92% Total 32,520 100% 100% Electronic Interfaces

20 PERFORMANCE METRICS AP AS PROFIT CENTER As E- invoices Increase, Payment Error Rate Decreases Thousands E-Invoices 371K 312K 226K 178K 95K % % % % Payment Error Rate % % % %

371K 312K 226K 178K 95K 2002 2005 2008 2011 2012 0.0150% 0.0100% 0.

21 PERFORMANCE METRICS AP AS PROFIT CENTER As E- invoices Increase, Clerical FTE s Decrease and Produc*vity Increases Clerical FTE's 800 Invoices / FTE / day

22 PERFORMANCE METRICS AP AS PROFIT CENTER As Systems Become Automated, Percent of On Time Payments and Discount Efficiency Increase 100% 80% 60% 40% 20% 0% On Time Payments 94% 95% 72% 78% 81% % 80% 60% 40% 20% 0% Discount Efficiency 95% 93% 73% 87% 90%

23 PERFORMANCE METRICS AP AS PROFIT CENTER And Early Payment Discounts Skyrocket! Millions $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 46 M 32 M 1 M 2 M 4 M

24 PERFORMANCE METRICS AP AS PROFIT CENTER 3.0% 2.5% 2.0% Sliding scale discount Hit-or-miss discount $ # INVOICE APPROVALS 1.5% 1.0% 0.5% $ $ 0% Days

25 COST SAVINGS, DISCOUNT EFFICIENCY & DYNAMIC DISCOUNTS E- invoices are an essen*al enabler to reduce AP costs and increase discount capture efficiency Internet based E- invoice web portal or network is required for supplier ini*ated Pay Early dynamic discounts - 35% of PG&E portal vendors ini*ated pay early dynamic discounts in 2012 E- invoice solu*on providers are essen*al enablers for dynamic discounts

26 Solution Demonstration

27 ? Ben Shaffer, PG&E Markus Ament, Taulia Joe Hyland, Taulia

29 THANK YOU FOR PARTICIPATING Please provide feedback on this session by comple*ng a short survey via the event mobile applica*on. SESSION CODE: 7819 For ongoing educa-on on this area of focus, visit

Building a Strong Foundation for Supplier Finance Unlocking Value From Your Supply Chain

Building a Strong Foundation for Supplier Finance Unlocking Value From Your Supply Chain Taulia Overview The leading SaaS provider of Supplier Self-Services, einvoicing and Supplier Financing software