DRIVING THE TRIPLE C FACTOR. Costs down, compliance up and cycle time contracted

Transcription

1 DRIVING THE TRIPLE C FACTOR Costs down, compliance up and cycle time contracted

2 Industry reference Aberdeen Group (2007) 5% reduction in bottom line costs 20% improvement in the top line Paper manufacturers embrace electronic media Good business practice Improving productivity

3 Driving the triple C factor: Costs down Compliance up Cycle time contracted

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5 Your key take-aways Higher satisfaction Business process improvements Improved internal audit reports

6 Our business Planting Seedlings Maintenance R&D Fellings Transport Shorthaul Depot

7 Our business Good returns Strong balance sheet To ensure that Sappi is an exciting, growing and profitable leader in paper and specialised cellulose.

8 Our business How? Maintaining and growing global leadership position as a low cost dissolving wood pulp producer Growing high margin speciality paper business in all regions Smaller and simpler low cost graphic paper business Maximising value from our forestry operations in SA

9 Our diverse business = broad supplier base

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11 Our business: touching you

12 Our business: bringing it home

13 Our biggest asset: our people

14 Global footprint, local flavour

15 Our business: countrywide Ngodwana 195kton paper pulp 230kton kraft paper 140kton newsprint 210kton dissolving wood pulp Enstra 200kton uncoated fine paper 42% local uncoated paper 28% coated fine paper Stanger 110kton coated paper & tissue 60kton pulp Tugela 280kton kraft paper 130kton paper pulp 40% of SA s packaging paper requirements Cape Kraft 60kton kraft paper 36% of local newsprint supply

16 Shared services Industry hype: shared services Accounts payable: goods and services

17 Shared services Opportunity for Sappi Reduce waste Lean six sigma: green belt Business process mapping

18 Shared services Reduce geographical creditors clerk footprint Business process mapping: as-is at the time, identify gaps, propose opportunities Re-deploy team centrally, right sizing exercise Another challenge borne courier costs, lag time in transporting invoice to hub Birth of technology Scan paper invoices / capability to receive SARS compliant pdf (128kb encrypted)

19 Technology investigation Business process management Technology feasibility and capability Value engineering

20 Value engineering Accounts payable and expense Multiple payment methods including electronic payments Time recording and travel booking Travel charges are integrated with payroll Automatic audit Travel and expense reporting Integrated with the G/L Automatic alerts

21 Value engineering Key metrics: AP AR Total external audit cost incurred (in selected currency) Average cycle time for creation of annual forecast (in days) Average time to create a new report for which there is no previously defined report template (in days) Average time to close monthly books (in days) % discounts lost from suppliers Average discount (in %) Annual purchase amount eligible for discounts (in million currency) % of invoices using online processing

22 Value engineering Key metrics: AP AR continued % of payroll errors Average days sales outstanding (in days) Accounts receivable balance (in million currency) % of receivables overdue Uncollectible A/R write-offs (bad debts) in past year (in million currency) % of errors in bills sent out

23 Value engineering Shared services hub for account payments Task: process 144k invoices annually across 8 company codes

24 Enter ReadSoft Preferred technology of choice: Evaluated alternate products in the marketplace and competitors are present at Saphila Sappi EU and NA use the product, so it was a non-event in the choice of ReadSoft. Sappi single SAP project presented timeline and challenges, resulting in upgrade to EUNA s ReadSoft environment.

25 Enter ReadSoft Preferred technology of choice: Input Paper Image file PDF XML Fax Invoices Invoices Configuration & administration Manager Production Scan Interpret Verify Transfer Interpretation tuning Optimise Output Invoice image files Invoice data Target system

26 Measures of success ReadSoft tool with optimised functionality Right first time: Invoices processed per clerk per day Opportunity for continuous improvement 70% 31 (EU standard in Poland is 33)

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28 Measures of success Overdue workflows August September October November December January February

29 Measures of success

30 Readsoft Invoices processed

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32 Continuous improvement Slow response time Hardware Infrastructure Architecture

33 Continuous improvement Technology focus: tweaking the engine Optimising the scan to improve right first time

34 Continuous improvement Training: Goods receipt, service acceptance and workflow handling Improve GR/IR Reduce workflows Touch less invoices

35 Way forward Shared services AP is proving success Payroll next opportunity

36 Self-reflection Costs down Compliance up Cycle time contracted

37 Your turn! Questions and queries Feedback: did you enjoy it?

38 Thanks for being a great interactive audience!

39 Koosh Panday Mobile LinkedIn: