Optimizing Accounts Payable Operations Basware e-solution Implementation. A Functional & Technical Overview

Transcription

1 Optimizing Accounts Payable Operations Basware e-solution Implementation A Functional & Technical Overview November 2010

2 The Firm Annual Revenue $5 billion Private Corporation Founded in 1914 Markets We Serve Defense National Security Homeland Security Scale and Scope 23,000 talented people, serving clients from more than 80 offices Our Expertise Organization & Strategy Economic & Business Analysis Supply Chain & Logistics Law Enforcement Health Energy Environment Financial Services Transportation Delivering Results to Clients Global Operations Team Intelligence & Operations Analysis Information Technology Systems Engineering & Integration Assurance & Resilience Modeling & Simulation 1

3 Our Technology Journey E-Purchasing Solution Commerce One Implemented 1998 Expense Report Solution Captura Implemented 2001 E-Subcontract Solution Home Grown Implemented 2002 E-Invoicing Solution Home Grown Implemented 2002 E-Invoice Workflow BasWare Implemented 2005 Travel Online Booking Tool Travelport Implemented 2005 E-Purchasing Solution Re-launch Ariba Implemented 2008 Travel & Expense Online/e-Receipts Concur Implemented 2008 Travel & Expense Online Integrated Tool Concur Implemented 2009 American Express Individual Bill/Company Pay Concur Implemented 2010 e-invoicing Re-launch/e-Forms/e-Portal BasWare Implemented

4 Demographics reflect sustained year-over-year growth requiring us to remain agile and ensure that our technology solution scaled accordingly FY10 $244M FY11 $396M Purchase Orders FY10 $1,148B FY11 $1,306B Total Vendor Invoices FY10 $109M FY11 $120M Expense Reports FY10 $18.8M FY11 $21M P-Card E-Invoicing increased by 38% in nine months, from 46% in FY10 to 84% in FY11 to date. In FY11 to date, 9K e- forms have been submitted through the Supplier Portal. FY10 FY11 3

5 Our e-solution strategy was based on several decision factors and implementation goals Decision Factors Challenged to reduce costs, while supporting increased demands in a highly regulated environment Flexibility in capture methods to manage a mix of electronic and paper invoices, purchase order (PO)-based and non-po-based invoices To eliminate paper transactions To receive accurate data To reduce manual touch points Invoice automation that reduces paper, contains costs and supports sustainability initiatives Implementation Goals Enable workflow management for invoice receipts, discrepancy resolution, approval, segregation of duties and auditing Improve AP efficiency, effectiveness and cost structures by reducing cycle times, transaction costs and reducing errors Minimize lost documents, document transportation, mail handling and storage costs Achieve straight-through processing, realizing operational efficiency Improved visibility Integrate with existing technologies 4

6 Major components of our e-invoicing implementation strategy Drive invoice receipt to one of four electronic invoicing methods: 3 rd party provider, direct load to BasWare, supplier portal, and invoice bridge Require100% adoption for first 100 vendors targeted with monthly volume greater than or equal to 100 invoices Implement extended payment terms for those vendors who opt out Offer electronic invoicing options to vendors with volume less than or equal to 99 invoices per month Conduct aggressive outreach and educate resistant vendors Align remittance method with invoicing method Vendor Adoption 87% over nine months Electronic Remittance 90% across Accounts Payable E-Invoicing via Supplier Portal 373 vendors adopted in FY11 to date. 5

7 Implementing business rules and other automation features contribute to benefits, efficiency and productivity gains Business Rules Workflow bucket rules that recognize common features of an invoice to automate invoice workflow Tolerances on indirect freight and tax eliminate labor intensive PO modifications and reduce touch points for both AP and Purchasing staff E-Forms transfer all keying and validations to a front end process executed before the documents are submitted to AP, effectively switching the AP role from data entry to audit and process finalization Auto routing for receiving/approval. Auto transfer to accounting when conditions are met Efficiency/Productivity Gains Scanned invoices are subject to efficiencies gained through the implementation of bucket rules Auto attaching of supporting documentation such as PO s and PR s make these documents available to AP auditors, and facilitate quicker decision making Eventual decommission of homegrown system will contribute to enhanced customer experience, centralize AP front end processing, and increase systemic validations, thereby decreasing error rate and posting failures The front end process prevents validation errors, minimizing time spent in communicating for error resolution 6

8 Our ROI centers on a productivity gain in AP invoice processing operations yet benefits are seen across the organization Redeployed resources to perform vendor adoption activities and toward new work coming in to AP Reduced document storage costs Auto messaging to Treasury of high dollar transactions, contributing to cash flow controls Increased vendor satisfaction due to faster processing and approval cycles, greater visibility into invoice status, and no cost e-invoicing options eliminating postage and supply costs of paper invoicing Achieving corporate sustainability initiatives (reducing paper, waste, green initiatives) Improved tracking and accessibility for regulatory requirements, compliance and SOX controls 7

9 Best Practices & Lessons Learned Plan for a robust scanning operation, as smaller suppliers are not as likely to convert to sending e-invoices Consider a web-based form to facilitate the exchange of invoice data that presents most of the barriers to supplier adoption Think big but start small for integration, beginning with most time consuming activities Know your vendors Implement based on the volume and complexity of invoices, eliminating touch points Consider an e-invoicing provider to ease e- invoicing s main pain point and most critical success factor: Supplier Adoption Schedule live demos as your business rules are developed Consider licensing needs and options well in advance Agree to plan for bad invoices with your third-party e-invoicing provider and software vendor Build reporting rules and needs into your project plan, including test scripts and UAT testing, just as you would for any business rules or configurations Equip staff with enough knowledge to communicate the strategy and how it benefits your organization Plan for specific new roles and responsibilities Prepare for mail handling exceptions Suggest integration method, but allow supplier flexibility to choose ***Most importantly, continuously liaise with your IT Team early in the project, during the project, and maintain that relationship post implementation*** 8

10 Technology Phased Approach for e-invoicing Re-Launch/e-Forms/e-Portal (2010) Upgraded Basware 3.5 to 5.0 Set the stage for e-invoicing and e-forms/e-portal project e-invoicing and e-forms/e-portal project Separate project for implementation of Invoice Automation, e-forms and e-portal Roles & Responsibilities of Basware consulting & Booz Allen IT Basware consulting responsible for Basware core software upgrades and custom solution development Booz Allen IT s role as liaison between the solution provider and the functional team, translating technical capabilities to project requirements -- a critical success factor to managing expectations overall and achieving project success Booz Allen IT also responsible for infrastructure, integration, performance testing & on going support 9

11 Main reasons for Basware 5.0 Upgrade Ability to implement all customer specific business rules (without custommade modules) Improved Business Rules Management supported by Data Maintenance Tool Easy to use UI for rule definition Windows authentication (Single Sign-On) New selection lists with quick search Ability to navigate between invoices without list view Auto flow Tighter integration with order matching 5.0 components 10

12 e-invoicing Re-launch/e-Forms/e-Portal (2010) New Module and components installed Supplier e-portal (IAP) AnyERP 5.2 Order Matching 5.0 P1 Key system integration needed for Automation Integration with Booz Allen Web Services Real time data validation during data entry and transfer to accounting Manual PO match with real time PO data from purchasing system Automation of attachment of supporting documents (PO/PR print) to invoice Ability to match to PO based on extended amount for implementation of indirect Freight & Tax tolerance Identification of Order requester for approval Auto Flow 11

13 Booz Allen is looking forward to the following technical enhancements to align with our technology strategy Windows Sign-On for Supplier Portal Web based user interface for all modules. Decouple Basware system requirements from users PC operating system upgrades (e.g. Windows 7). Eliminate the need of users access to server root shared folder Storage of images in database instead of server file system for better maintenance and easier future upgrades/migrations Complete segregation of core and custom code and configurations Open API that allows customers to enhance and support system functionality using their internal IT resources Enhancements to supplier portal UI for better usability and navigation 12

14 High Level AP Data Flow Diagram Electronic Invoices (EDI 810, 812) Electronic Invoices (Transcepta) AppXtender Basware IAP JAMIS Delta Engine AnyERP Basware IP AP Workspace DW Active Directory VDB Green = Real time data Blue = batch jobs 13

15 Optimizing our AP operations centers on continuous alignment of our e- Invoicing solution to our business requirements ever-changing, everevolving, ever maturing Implement enhancements to supplier portal UI for better usability and navigation. Catering e-form/integration Actively market supplier portal Complete phased approach to 3 rd party supplier adoption Complete migration from homegrown system to BasWare Improve % of PO matches Continue to meet in forums such as this to share knowledge and support each of our businesses 14

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