Invoice Scanning at South Ayrshire Council. Jeff Atkinson South Ayrshire Council Ross Weaver Readsoft

Transcription

1 Invoice Scanning at South Ayrshire Council Jeff Atkinson South Ayrshire Council Ross Weaver Readsoft

2 About South Ayrshire Council South West Scotland Ayr, Prestwick, Maybole, Girvan and Troon Within rural area of 422 square miles Unitary Council - one of 32 in Scotland Population 113,000 48,000 Band D equivalents 5,000 employees

3 Synopsis AP Invoice Scanning or Invoice Automation is not just about technology. In this presentation you will gain an insight into how Invoice Scanning fits into the overall P2P solution within South Ayrshire Council and some of the tangible benefits they have gained so far from adopting an Invoice Scanning system. Top 3 things that you will take away from the presentation: 1) Top level sponsorship for AP Automation is a prerequisite 2) The full P2P process can be paperless 3) Significant benefits are achievable from Invoice Automation

4 The start point 160,000 invoices excluding interfaces Decentralised >130 processing offices / sections 25% order invoices KPI 80% invoices in 30 Days Average 15 days to process No catalogues Buying optimally? Physical signatures, paper, copies and batches Approval as an admin task

5 Evolution of strategy Awareness of scanning pre 2000 Forced upgrade Various Options tested Requirements included scanning Oracle and partners Scan first Centralise Recognition of role in P2P Match mainly on product codes e-catalogues importance

6 Capture images The challenges Automate/Minimise human intervention (PO) Streamline processes - Reduce costs Improve speed Improve accuracy

7 The P2P process in SAC Self-Service e-catalogues and Requisitions Auto- ed POs Invoices - Scan FIRST Centralised Auto 3-way matching and approval BACS payment ed remittance advice

8 100.0% % of Invoices Paid within 30 Days 2012/ % 80.0% 70.0% 89.3% 81.0% 82.2% 84.7% 84.8% 89.3% 87.9% 87.7% 95.0% 77.4% 86.0% 85.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Apr'12 May'12 Jun'12 Jul'12 Aug'12 Sep'12 Oct'12 Nov'12 Dec'12 Jan'13 Feb'13 Mar'13 YTD Actual Full Year Target

9 Payment Performance by Invoices Paid within 30 Days Oracle Scanned 2012/13 system Invoices Paid within 30 Days ex 'legacy 1' 2012/13 Invoices Paid within 30 Days ex 'legacy 2' 2012/13 95% 82% 69% Based on 35,479 invoices paid Based on 47,269 invoices paid Based on 8,521 invoices paid

10 % of Invoices Matched to Purchase Orders - History 80% 70% 60% 69% 73% % of cfacs invoices ordered 50% 52% 40% 30% 20% 10% 0% 24% 24% 0% 0% 22% 23% 2008/ / / / /13 (10 mths) 28% % of 'Readsoft' scanned invoices matched to PO

11 % of Order Lines from Catalogue 2012/ % 70.0% 68.9% 65.8% 71.3% 70.6% 69.3% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Apr-Jun 2012 Jul-Sep 2012 Oct-Dec 2012 Jan-Mar 2013 (part) Total 2012/13

12 Average Number of Days to Process Days Manually Processed Invoices 4.62 Days Processed via Invoice Automation

13 % of Invoices where approval 'Not Required' (Straight Through Processing (STP)) 43.56% 56.44% Approval Not Required Approval 'Not Required' Approved

14 Manual Processing Cost v. Automated Processing Cost > Manual Processing < 3 Invoice Automation

15 What next for SAC o o o We re not finished, the immediate future this year: finish the rollout Readsoft Upgrade including e-invoices R12 Upgrade Longer term? Punchout Market Place i-supplier You can see that automation plays a hugely important role but ultimately it is the business processes, the culture, and the sponsorship that make the most difference

16 What s supporting SAC ReadSoft process automation Best of breed business processes, 21 years of experience Integration with Oracle EBS Validated and compliant with 11i and R12 Future is improving workflow & adding value with automated collection and reporting to monitor progress Automatic PO Matching Rapid exception handling and self-learning

17 Accounts Payable (AP) is still a paper-heavy business function Nearly 77% of all incoming invoices are still paper-based Drive bottom line savings by automating your incoming invoices Aberdeen Group, May 2011 To be best in class you need to automate! Best in Class Average % of companies investing in invoice automation 0% 10% 20% 30% 40% 50% 60% 70%

18 Hackett Group Benchmarks Global Benchmarking Study - 4,000 benchmarks with leading global companies Non-top performers have almost double the cost of top performers Non-top performers have more than threefold invoice processing costs

19 Top performers process 3x the amount of invoices with half the amount of heads

20 What can be achieved 1. Receive attachment or scan paper invoices 2. Solution handles the invoices and matches to POs (touchless processing) 3. Data & images are stored and invoices are posted, ready for payment 1 minute 2 minutes 3 minutes

21 Invoice Processing Overview

22 Why ReadSoft in local government? Over 20 years experience and references in local and central government On-premise or cloud solutions Drive down costs without cutting front line services Help offset the Department of Communities & Local Government Settlement Plan reductions Local government AP costs are on average more expensive per invoice than corporate top performers Authorities average 75,779 invoices per annum, which equates to savings of 197,783 per authority per year if you achieve top-performer status. Data from research with 285 STCC and DC s in 2012

23 Quick reminder of benefits Optimise the E-Business Solution Get more business value from your R12 upgrade Automate the entire invoice process to reduce processing time and reduce manual processes Get rid of paper processing Collect invoices in any format. Paper, electronic, etc. Improved user experience and entire AP activity Keep track of financials & audit trails Rapid access to information and accurate, timely reporting

24 Some vital statistics KPI 80% v 95% % invoices PO matched 24% v 73% 69% order lines from catalogue Process time 15 days v <5 days (3wks v 1 wk) Process cost > 8 v < 3 (24 FTE v 8 FTE) >40% of invoices Approval - Not Required

25 Thank-You Q&A