Supplier to Airline e-invoicing (SAI)

Transcription

1 Supplier to Airline e-invoicing (SAI) Singapore 21 September 2016

2 Introduction Overview of the Supplier to Airline e-invoicing (SAI) initiative Industry commitment Benefits for the industry KLM example Next steps World Financial Symposium th SIS General Meeting - 21 September

3 SAI, a COST CONTROL initiative Establish the e-invoicing standard for the industry enabling full automation and cost control for airlines 5 th SIS World General Meeting Financial - 21 September Symposium

4 Why an industry standard? Standardize e-invoicing with industry specific IS-XML 5 th SIS World General Meeting Financial - 21 September Symposium

5 The IS-XML industry standard and its structured and granular data enables a fully automated process Automated Receipt Automated Financial Integration Automated Reconciliation 5 th SIS World General Meeting Financial - 21 September Symposium

6 SAI Initiative Scope Direct Operating Cost (DOC) Suppliers Biggest cost drivers Airport as 1 st segment Impact on Profitability and Decision Making Highly Shared Among Airlines 5 th SIS World General Meeting Financial - 21 September Symposium

7 Airport Segment It starts with the airlines! Able to process automatically IS-XML Early adopters : FinCom airlines, then airline waves each year Value proposition increasing with number of airlines Segment dynamic: Give to get. Each airline to engage its home airport(s), all on same hub SIS Mutual influence. New live airports increase volume for airlines Cumulative Targets Airline commitments Airport IS XML live n/a 8 21 World Financial Symposium th SIS General Meeting - 21 September

8 Airline traction Financial Committee member airlines actively supported the approach going forward, with a commitment by 2017 to: Adopt the IS-XML industry standard for industry e-invoicing Advocate with their home airports to implement IS-XML IATA internal threshold to continue funding: 70% FinCom airlines with commitment letters QR, BA, LH, AZ, EK, CX, SV, SQ, KL, TG committed. LY, KE : in technical assessment also non FinCom: EY, VS, LX, KA committed. SIS as preferred industry solution 90% of airlines to use SIS as DOC invoice hub World Financial Symposium th SIS General Meeting - 21 September

9 KLM s example How IATA cost control and automation initiative contributes to airline s improvement KLM s High Performing Organization initiative Rob Huijsman, Director KL Accounting Services World Financial Symposium th SIS General Meeting - 21 September

10 High Performance Organization Finance & Control

11 New Finance design based on 3 underlying visions for KLM KLM Vision + HPO Vision + Finance Vision "To become Europe's most customer-centric, innovative and efficient network carrier" HPO organizational stimulates the performance of it's employees Managers leading by example Simple and flat organization Employees feel responsible and are empowered to reach goals Organization is able to realign with changing market conditions A safe, open, interactive organization aimed at achieving KLM's overall strategic targets "We protect KLM's financial integrity and deliver high quality financial analysis to support effective decision making" Be an independent professional partner in strategic Finance topics and financial planning Provide high quality financial reporting and analysis to deliver value to main stakeholders Respond with agility to rapid market changes Ensuring strong internal control and risk management These visions form the basis for the new Finance design

12 High Performance Organization 12

13 4 key changes for Finance are introduced to reach our vision 1 Value creation Business Controller has more time to act as true value creator in the business Advising line management, signalling opportunities, threats, developments Less repetitive work Increase Efficiency and Effectiveness Centralizing accounting activities where possible to drive efficiency improvements Digitize Centralize and Specialize Centralize activities of Reporting, Business Analysis, Business support, Internal Control Central Business Analysis/Support enables cross-bu expertise (e.g. labor, fuel, etc) Afterwards standardize, optimize and automize Simplify financial processes Lean concept; introduction of process controllers Better cooperation and quality

14 Airline s Benefits proportional to automation level Automated Receipt Paperless Invoice Invoice management storage reduce lost invoices reduce disputes workflow legal archiving Financial Integration Auto-posting Financial booking automation usage of header info auto data entry data quality workflow and routing reduced late payment penalties Automated Reconciliation Invoice validation detection of overbilling financial statement speed and accuracy accruals accuracy Business intelligence improved route profitability and new route simulations global procurement improved management decision

15 Conclusion Carry the message internally! It is not just about Accounts Payable process Benefits well beyond process automation cost avoidance Size the opportunity of technology refresh to minimize investment It starts with airports, but other DOC supplier segments will follow World Financial Symposium th SIS General Meeting - 21 September

16 Standardize : IS-XML Simplify : SIS as hub connection Share : industry collaboration 5 th SIS World General Meeting Financial - 21 September Symposium

17 Thank You Singapore 20 September 2016 Bernard PAUL World Financial Symposium th SIS General Meeting 21 September