Information at Work: Purchase to Pay

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Canon Information Management evenement Düsseldorf 26 november 2014 Canon Purchase to Pay oplossingen

description

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 bijvoorbeeld 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 vertelde 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

Transcript of Information at Work: Purchase to Pay

Page 1: Information at Work: Purchase to Pay

Canon Information Management evenement

Düsseldorf

26 november 2014

Canon Purchase to Pay

oplossingen

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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.

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PURCHASE TO PAY MAXIMIZING BUYING POTENTIAL AND CASH FLOW WITH P2P AUTOMATION

FABRIZIO FALZARANO TEAM LEADER, INFORMATION MANAGEMENT SOLUTIONS, CANON EUROPE

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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

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INFORMATION AT WORK

THE MARKET TRENDS

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What is P2P?

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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

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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

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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

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Research: four forces are re-shaping the ePurchasing (P2P) software market

Source:

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Research: latest generation end-to-end P2P platforms

Source:

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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!

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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

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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

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INFORMATION AT WORK

THE SUCCESS STORIES

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MICHAEL BJERRE DROST Chief Financial Officer

SUCCESS STORY: CREATIV COMPANY A/S

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INFORMATION AT WORK

SUCCESS STORY

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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.

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BACKGROUND: CREATIV COMPANY & CANON

• Customer since 2013

• Invoice workflow

• Selection process – 3 invited

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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)

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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

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CANON’S SOLUTION

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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

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• 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)

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PURCHASE TO PAY

CANON’S VIEW

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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

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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

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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

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• Deliver ExceptionalCustomer Experience

• Gain CompetitiveAdvantage

• Meet RegulatoryCompliance

Let us show you how we can help you grow your business!

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THANK YOU

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THANK YOU