Information at Work: Purchase to Pay
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Transcript of Information at Work: Purchase to Pay
Canon Information Management evenement
Düsseldorf
26 november 2014
Canon Purchase to Pay
oplossingen
Canon Purchase to Pay oplossingen
Purchase to Pay oplossingen helpen organisaties om het hele traject van bestellen, inkopen en betalen van producten te stroomlijnen. Onderzoek van het Institute of Financial Operations laat zien dat automatisering van purchase-to-pay processen 3 grote voordelen oplevert:
• Kostenbesparingen
• Kortere doorlooptijden
• Beter overzicht over b.v. cashflow en aangegane verplichtingen
In deze presentatie worden enkele internationale onderzoeken behandeld die aantonen wat o.a. de voordelen van Purchase to Pay automatisering zijn.
De Deense firma Creativ Company vertelt over haar ervaringen met de implementatie van een Purchase to Pay oplossing van Canon.
Wilt u meer weten? Neem contact op met Canon Nederland. Tel. 073-6815815.
Canon for business 2014
Op 26 november 2014 vond in Düsseldorf het tweede internationale evenement over Information Management plaats, georganiseerd door Canon.
Op het evenement waren diversen parallelsessies over specifieke onderwerpen waarbij externe experts en klanten van Canon vertelden over trends en ervaringen.
PURCHASE TO PAY MAXIMIZING BUYING POTENTIAL AND CASH FLOW WITH P2P AUTOMATION
FABRIZIO FALZARANO TEAM LEADER, INFORMATION MANAGEMENT SOLUTIONS, CANON EUROPE
AGENDA
The Market Trends
Does P2P really work? Benchmarking P2P automation: the latest results
The Success Stories
Making Purchase to Pay work: the Creativ Company finance automation story
Canon’s View On P2P
Smarter procurement and finance: the benefits of P2P
Summary
A chance to elaborate on solutions further in the consultancy area
INFORMATION AT WORK
THE MARKET TRENDS
What is P2P?
Originator Demand for
Goods/Services
Contact Supplier
Supplier Provides
Quotation
Purchase Req. Raised in-line
with Quote
Req Approved and PO Sent to
Supplier
Supplier Receives PO – Process Order
Invoice Dispatched by
Supplier
Goods/Services Received GRN
Processed
Invoice Received with
PO No.
Invoice Processed
Payment to Supplier
Processed
Supplier Paid
P2P Process Overview
Procurement Department
Source: adapted from
Finance Department
Originator Demand for
Goods/Services
Contact Supplier
Supplier Provides
Quotation
Purchase Req. Raised in-line
with Quote
Req Approved and PO Sent to
Supplier
Supplier Receives PO – Process Order
Invoice Dispatched by
Supplier
Goods/Services Received GRN
Processed
Invoice Received with
PO No.
Invoice Processed
Payment to Supplier
Processed
Supplier Paid
P2P: The Reality
Procurement Department
Finance Department
Source: adapted from
Invoice – no PO Requisition PO raised
after the goods/services have been received
Research: link between AP and Procurement
Source:
• Growing use of integratedP2P automation
• Streamlining of processesend-to-end
• Increasing use of electronicprocurement networks
Source: The Forrester Wave: eProcurement, Q2 2014
by Duncan Jones, Forrester Research
Research: four forces are re-shaping the ePurchasing (P2P) software market
Source:
Research: latest generation end-to-end P2P platforms
Source:
Looking at your organisation’s Procurement and AP functions, would you say that they have integrated operations?
Quick survey
1. Not at all, they are completely separate
2. Common leadership, but separate functions,with some shared metrics
3. Shared leadership and metrics, but emergingintegration
4. Completely integrated
Only choose 1!
Research: Integration of Procurement and AP functions
Source:
• More than 75% have not fully integrated
• About 37% said their departmentshave no overlap
• About 20% have common leadership and sharesome metrics but have separate functions
• Nearly 20% are working toward integrating
• Almost 25% have completely integratedSource: Pulp Friction: The Case for Paper-Free P2P, IFO/IAPP, 2013
Research: Top Three Reasons for Automation
Source:
Pulp Friction: The Case for Paper-Free P2P,
IFO/IAPP, 2013
Better visibility across transactions: ability to make decisions based on real-time data
Faster approval cycles: fewer late payment penalties and more opportunities for early payment discounts
Cost reduction: savings in paper and time
INFORMATION AT WORK
THE SUCCESS STORIES
MICHAEL BJERRE DROST Chief Financial Officer
SUCCESS STORY: CREATIV COMPANY A/S
INFORMATION AT WORK
SUCCESS STORY
CREATIV COMPANY KEY FACTS
• 200 Employees
• 8 Locations/group companies
• Turnover: 27 million EUR – 380.000 orders !
• Customers: B2B, B2I, B2C – total 80.000 !
• Platforms: 50 websites, Amazon, Ebay, Internal
• Ideals: CSR and working enviroment
• Basis: Excellent business, Creativity, Great placeto work
Creativ Company is an innovative provider of
craft products and more than 3.000
creative ideas. Creativity is our
passion.
BACKGROUND: CREATIV COMPANY & CANON
• Customer since 2013
• Invoice workflow
• Selection process – 3 invited
P2P Background
• Handling more than 10.000 incoming Creditor invoices per year (DK)
• Among theses 10.000 many prepayments to China
• Besides that approximately 3.000 other bookkeeping documents
(internal group invoicing, travel receipts, etc.)
• Bookkeeping in DK for 3 group companies (NO, DE, UK)
P2P CHALLENGES
• Approval process (overview)
• Manual handling typing, printing out PDF-invoices, distribution, etc.
• Montly accounts (received not approved)
• Difficult to comply with approval rules
• Time consuming sending reminders and looking for invoices
• Occasionally late payment to Creditors – invoice lost
CANON’S SOLUTION
THE BUSINESS IMPROVEMENTS (1)
• We are in control!
• Handles both cost and purchase invoices (total level)
• Approval process well documented
• Easy to chase “late approvers”
• Monthly accounts now closed/reported on the 4-5 working day month after
• Retrieving invoices afterwards for analysis purposes – outstanding!
• Fast and smooth installation – 1 day ready to go
• More time in Finance department to look forward instead of backwards
• Possible to make small adjustments to the standard setup and still upgrade to
new version (Invoice number look up, Proforma China, other)
• Our CCO is Happy …
THE BUSINESS IMPROVEMENTS (2)
PURCHASE TO PAY
CANON’S VIEW
P2P – A CHANGED LANDSCAPE
Source supplier
Purchase order
Receive goods/ service
Process invoice
Monitor & report
Pay supplier
New laws from regulators push for P2P technology automation adoption (e.g. EU e-invoicing directive)
Late payment culture emerged from global economic cash crisis; finance & proc. wanting to add more value
Changed role of CFOs: key figure in bringing internal change
Top CFO priority: “Innovation” (IDC, 2013)
Cloud, Big Data, Social, Mobile
The big IT trends inundating the financial applications landscape
REGULATORS BUSINESSES INNOVATION ENABLERS
P2P – IN SUMMARY
• Paper driven process - no workflow or automation
• No end-to-end processing: purchasing not linked to AP
• Employees buy what they want from whoever they want
• No visibility of invoices, some are lost or misplaced
• Limited or no management of information (lack of insights)
• Difficult to ensure end-to-end control and compliance
Source supplier
Purchase order
Receive goods/ service
Process invoice
Monitor & report
Pay supplier
P2P – AUTOMATION, WHY CHANGE?
Better procurement, spend control & cash-flow visibility
Purchase Pay End to end P2P
…linking purchasing and finance…
REDUCED COST INCREASED VISIBILITY
IMPROVED SECURITY &
COMPLINANCE BETTER CONTROL
Procurement & payment transaction savings
Improved analytics through the end-to-end process
Stronger regulatory, contractual and internal compliance
Unified governance across procurement & finance
• Deliver ExceptionalCustomer Experience
• Gain CompetitiveAdvantage
• Meet RegulatoryCompliance
Let us show you how we can help you grow your business!
THANK YOU
THANK YOU