“C ti ” A S t “Cementing” A Smarter Strategy for AP Automation:gyBuzzi Unicem Goes Digital for Invoicing & Payments

with Oracle® E Business Suitewith Oracle® E-Business Suite

Michael ParkerMichael ParkerBuzzi UnicemBuzzi Unicem

Chris LuomaChris LuomaBottomline TechnologiesBottomline Technologies

VP Information SystemsVP Information Systems Director, Product MarketingDirector, Product Marketing

Agenda

• IntroductionsBuzzi Unicem AP Invoice Challenges• Buzzi Unicem – AP Invoice Challenges

• AP Automation Implementation ProcessL L d• Lessons Learned

• AP Automation Benefits• Q&A

It’s Still a Paper-Based World

“95% of AP departments said they are still receiving the majority of their invoices as paper via the mail ”

Source: IAPP AP Automation Study, 2009

majority of their invoices as paper, via the mail.

Where’s the Operational “Pain” for AP?

Eli i t “P i ” Th A t ti Eliminate “Pain” Thru Automation

Collaborative

Supply Chain

Collaborative

Automated• Auto Matching

• 100% e-Invoices

• Order-to-Pay

• International Payments

Manual • Front End Imaging

• Auto Matching

• Rules Based Approval Workflow

• Dispute Resolution

International Payments

• SWIFT TSU

• Supplier Self-Service

• Supplier On-boarding• Centralized AP

• Hand-Written Checks

• Scan & Archive

• Manual Retrieval

• OCR & Key From Image

• Document Preparation and Routing

• Check Printing

• Exception Routing

• Electronic invoices

• Data capture as a managed service

• Ad-Hoc Discounts

• Supply Chain Finance

• ePayments• Manual Retrieval

• Manual Approval• Electronic Payments • Remittance presentment • Cash Management

Transform AP: Integrated Invoice Processing

CODE & APPROVE VALIDATE & MATCH

AUDIT HISTORYAND REPORTING

CAPTURE

SEARCH AND RETRIEVE

Business Overview Headquarters Bethlehem PA Headquarters - Bethlehem, PA

5th Largest cement producer in USA ~8.7M tons per year

Wholly-owned by Buzzi Unicem SpA located in Casale, Italy (8th largest cement producer in the world)

Created in 2004 by RC Cement Company and Lone Star Cement merger

8 Production Plants

29 Distribution Terminals

7 Sales Offices

2 Ready Mix companies

1,600 Employees

Buzzi Unicem USA: Core System Landscapep• Oracle e-Business Suite 11.5.10

• Financials • GL/ AR/ AP/ FA

• HR/Payroll• Order Management• Order Management• eAM

• Maintenance Planning• Purchasing• Inventory

• Projects

Buzzi Unicem USA: Complementary System Landscapey p

• Bottomline TechnologiesDesignStudio– DesignStudio

– Custom Forms for Oracle applications

– e.ComIntegrateg– Integration between Optio and Oracle

– e.ComPresentD t St– Document Storage

• SER Capture– Document scanning

Accounts Payable Challenges

• Pre-AP Automation– Distributed invoice receipt process

• Terminal and Sales offices locations– Managers code and approve invoices by hand– Mail to AP Department in Indianapolis or Bethlehem for data

entryScanning for permanent recordkeeping– Scanning for permanent recordkeeping

• Plant locations– Managers code and approve invoices– AP Clerks enter into OracleAP Clerks enter into Oracle– Paper copy filed for recordkeeping

– Regional Check Printing• Checks processed at either Bethlehem or Indianapolis p p

locations

Accounts Payable Challenges• Issues

– Lost Discounts• Time delay from receipt at terminal locations to entry into• Time delay from receipt at terminal locations to entry into

Oracle– Lost Invoices

C di– Coding errors• Handwriting illegible

– Duplicate invoices received• Managers faxed and mailed documents to AP

– Incomplete support and documentation– No central repository for invoicesNo central repository for invoices

AP Automation Objectives

• Reduce invoice-to-payment cycle– Improve discounts taken

I AP h h• Improve AP throughput– Reduction in keypunching using OCR– Reduction in coding errorsg– Elimination of “lost invoices”

• Central repository of all invoices– Easy retrieval from within Oracle– Easy retrieval from within Oracle

• Electronic settlement using Paymode-X™ network– Reduce check printing

Transform™ AP for Oracle + Paymode-X: Complete Order-to-Pay Automation

Transform™ AP from Bottomline:AP Automation Attributes

• OCR Scanning (Optical character recognition)– Pattern developed for repetitive invoicesPattern developed for repetitive invoices

• Reduction in keypunching• GL code filled by pattern

Front end routing• Front-end routing– Routing to manager based on…

• Pattern• Location – zip code• GL cost center

Transform AP Attributes - cont.

• Invoice ApprovalsApproval based on user dollar limits– Approval based on user dollar limits

– Workflow routing to next approver • Embedded Image Preview• Embedded Image Preview

– See both the document and the coding screen at the same time

Transform AP Attributes - cont.

• Real-time Oracle interface– GL Auto filteringg

• Coder can select only valid GL code combinations

– Suppliers / SitesC d t d ith lid d d d it• Coder presented with valid vendors and vendor sites

– PO by supplier• Open POs with received linesOpen POs with received lines

– Projects• Open projects and tasks

Transform AP Project Plan

• Phase I– Non-PO Invoices

• 29 distribution terminals– Invoices scanned centrally in Indianapolis– Routed to Terminal Managers for review, coding and g g

approval– Invoices above limit routed to next level manager– Patterns established for repetitive invoicesPatterns established for repetitive invoices– Approved invoices moved to Oracle interface table

• General & Administrative expensesR t d t t t f l– Routed to cost center managers for approval

– Oracle projects related costs

Transform AP Project Plan

• Phase II– Purchase Order-Based Invoices

• 8 manufacturing plants– Invoices scanned centrally

Invoice matched to received PO lines– Invoice matched to received PO lines– If invoice matches, moved to Oracle– Miscellaneous charge screen for freight, tax

• 2 Ready Mix Companies

Transform AP Deployment

• Terminal locations– Manager Logistics - Project Managerg g j g

• “Train the trainer” approach• All sites active in 90 days

G l & Ad i i t ti• General & Administrative expenses– Bethlehem Headquarters

• Cost Center Managers• Cost Center Managers– Legal– Insurance – IT

Transform AP Deployment

• Ready Mix Companies– Low volume– Limited number of users

• Plant Locations– Plant by plant rollout– High volume / many users

• 1st live site in April 2010• Targeted completion by December 2010

Transform AP: Obstacles and Issues

• Scanning– Operator issuesp

• Duplicate invoices• Multiple page invoices – Page breaks• Document alignment• Document alignment• Lack of technical understanding of the system

– OCR Patterns• Requires precision setting the pattern• Requires quality invoices

Transform AP: Obstacles and Issues

• Repository for invoices– Transform AP documents stored in Presenter

• Access in Oracle through “Attachment”

– Other scanned documents in e.ComPresentA i O l th h “Z B tt ”• Access in Oracle through “Zoom Button”

• End user historical searchesHas invoiced been entered or approved?– Has invoiced been entered or approved?

– Has invoice been paid?

Results • Reduced invoice-to-payment cycle

– Average payment days reduced – Reduction in discounts lostReduction in discounts lost

•• February February 2010 2010 –– 0 discounts lost0 discounts lost• Improved AP throughputImproved AP throughput

– OCR recognition for routing - 60%

• Central repository of all invoices– All invoices are scanned and stored digitally

• Electronic Settlement using Paymode-X network45% of vendors being paid through Paymode X initiated ACH– 45% of vendors being paid through Paymode-X initiated ACH

Lessons Learned

• Accounts Payable clerks need to become analystsanalysts

• Users need more training in order to use search capabilitiessearch capabilities

Future Plans

• Complete roll-out to all sitesUpgrade document storage to Transform• Upgrade document storage to Transform Content Center– Single storage location for all documents– Single storage location for all documents

• Link Oracle payment detail to Transform• Continue to enroll vendors in Paymode X• Continue to enroll vendors in Paymode-X

network

Pay Smarter with the Largest & Fastest-Growing Electronic Payment Networkg y

• Multiple payment types & unlimited remittance detail sent through an easy-to-use online portal

• The most fraud-proof electronic payment solution on the market• Integrates with existing financial systems, works with any bank

• Any payment file type accepted

O 9 000 k b d i• Over 95,000 network members and growing • Supplier adoption rates of as much as 70%, vs. only 5-7% for

competitors• Over $300 billion in spend processed

• Supplier on-boarding and authentication support from Bottomline• Software-as-a-Service Delivery Model means no upgrade fees or

hardware to install

P h Bill Lading I ti Invoice Invoice CashOrder Invoice

Bottomline Solution OverviewPurchase

OrderBill LadingWay Bill

InspectionCertificate

InvoiceApproved

Invoice Paid

CashReceived

OrderConfirmed

InvoiceSent/Arrival

Bank(s)Suppliers /Employees

AR AP

Invoices IN

Customers

Payments IN

Invoices OUT

Payments OUT

Bank(s)

Transform™ Output Center

Transform ™ Process Center Transform™ AP

Solutions

Center C-Series™

Bottomline Active Spreadsheet Server™

Paymode-X™

Getting Payback from AP

Working Capital Savings

Capture 100% of available discountsEliminate late fees

Improve Supplier Relations

Realize Greater Cash Visibility

Improve Processes

Reduce Paper

Questions…?

Thank You!

For more information, please contact: Michael Parkermichael.parker@buzziunicemusa.com

Chris LuomaChris Luomacluoma@bottomline.com

Learn More Online:b tt li /t fwww.bottomline.com/transformap

Stay Connected!

Twitter: http://twitter.com/bottomlinetech

LinkedIn: http://www.linkedin.com/in/chrisluoma