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1 The ecommerce Owner s Manual: A Suppliers Perspective from the Trenches Our presentation will begin shortly

2 Pool Safety Drowning Can Happen In An Instant Stats of Children Under the Age of 15: 74% of drowning incidents between 2015 and 2017 occurred in residential locations Boys from drowning at twice the rate as girls 351 children died in pools and spas in 2015 Emergency departments treat about 6,400 child related pool and spa injuries every year Swimmers should keep a few safety precautions in mind: Don't dive in unfamiliar areas Don't go in the water unless you know how to swim and never swim alone Make sure the body of water matches your skill level Swim in areas supervised by a lifeguard If you do get caught in a current, don't try to fight it and swim parallel to the shore until you can swim free Learn CPR and rescue techniques 2

3 Agenda ecommerce Overview» Introduction to Halliburton ecommerce» B2B Network Cross Section» Electronic Catalogs Overview» Halliburton Investment Mix» einvoicing Process Overview Our Perspective» Benefits & Challenges»Catalogs» Integrations Industry View 3

4 Introduction to Halliburton ecommerce Halliburton s ecommerce Journey Halliburton completes global SAP deployment Leads effort with API PIDX commercial document development project Co-founder of OFS Portal, LLC for global publication and syndication of catalog content & data contracts Deployed industry first ebusiness document transmission project utilizing API PIDX XML Replaced ecommerce engine with SAP & Oracle B2B Where are we today? 4

5 Introduction to Halliburton ecommerce cont. Revenue Type 39% 61% Electronic Invoice Paper Invoice Today Our electronic invoicing adoption rate has been increasing at a rate of 2.5% per quarter since January of 2016 and there is no indication that it will slow down. ecommerce Type 68% 32% ecommerce Cross Section 2, Customer Connections 1,360 - B2B Customer Connections B2B Connections Connections 5

6 B2B Network Cross-Section B2B Network Cross-Section OILDEX/ DRILLINGINFO CORTEX DIRECT CONNECT TRALIX ACIG ACTIAN HUBWOO OB Currently Oildex/ DrillingInfo comprise the majority of our network connections. With B2G continuing to pick up steam internationally EDICOM will represent a significant portion of our international network integrations. 6

7 Electronic Catalog Overview Our top revenue customers currently leverage B2B integration and as part of the integration these customers are taking advantage of price validation in the form of a Price Catalog. The current trend amongst our B2B customers is to integrate electronic catalogs and the trend does not look like it will slow down or stop st Published Electronic Catalog to OFS Portal 2017 to Present 24 active catalog customers To date we have uploaded 3,525 catalogs for our customers. An average of 35 catalog updates are made every month. 7

8 Halliburton Investment Mix Our departmental focus spans across four key areas allowing us to support a growing business while at the same time maintaining a high-level of service quality and customer relationship building. Integrations Maintenance & Support Catalogs Strategic Initiatives Domestic Dispute Mitigation New & Updates Customer Pilots International Configuration Updates Pricing Dispute Mitigation Process Streamlining B2G Ad-hoc Requests Training System Enhancements 8

9 einvoicing Process Overview Paper Billing Process PO Retrieval (Manual) Price Catalog (Non- Existent) SAP Sales Order SAP Invoice Print Invoice Mail/ Hand Deliver Customer Invoice: Paid or Disputed Electronic Billing Process PO Retrieval (Mailbox) Price Catalog OFS Template SAP Sales Order SAP Invoice Oracle Invoice + Job Packet Customer Network Customer Invoice: Acknowledged, Paid, or Disputed Job Packet Upload (North America) Job Packet Upload (International) Key Changes to make ecommerce work: Purchase Order Functional Mailbox (when applicable) Price Catalogs (when applicable) Documented Customer-Specific Requirements Electronic Document Repository Field Ticket EDI Popup Screen Invoice Dispute Resolution System and Process Manual Steps Systematic Steps 9

10 Our Perspective: Benefits & Challenges of ecommerce Customer Benefits Supplier Benefits Reduces Administrative Costs and Improves Efficiencies Improved Contract Compliance Capture and Analyze Spend Manage Commitments and Contract Compliance More Real-Time View and Transparency of Spend Operational Benefits Less Time Required for Buyer Approval Single Point of Delivery for Purchase Orders Customer Challenges Fragmented internal departments and disjointed cross functional alignment introduce delays in initial price catalog creation as well as data transmission requirements Invoice approval processes span many departments and can be rejected at any point; customers internal routing mechanisms may be incorrect Systems vary slightly and require different data to be keyed into sales orders Improve Buyer Relations Digitizes Purchase Order, Pricing, and Invoice Data Real-time customer dispute intelligence allows for faster resolution and dispute trends Faster Customer Payments (DSO/ DRO Reduction) Supplier Challenges Internal customer review and approval delays of information/ price catalogs impact invoice transmission timing Local resources at times lack SAP process expertise to create and manage catalogs efficiently Discipline necessary to transact an electronic invoice accurately, grows exponentially in the first three months of any deployment Unique customer requirements create complexity in Halliburton s system 10

11 Our Perspective: Catalogs Is it better to have the Price Catalogs created before an integration or integrate first or deliver both at the same time? What have we seen to be the best practice? Understand the customer approval process before getting started, do not assume all processes are the same Some customers require written approval Communication is key between customer and internal departments to ensure timely catalog creation, validation, and approval New contracts and amendments are not communicated ahead of time and need to be to avoid unnecessary disputes Keep a standard across all catalogs UoMs (UNECE and/or ANSI) Customer specific catalog templates do not replace the OFS Portal catalog as the source of truth Catalog downloads from OFS Portal are required in order to publish the correct data thus avoiding unnecessary disputes Reiterate the catalog process always and often and stick to it 11

12 Our Perspective: Integrations Every integration is managed as a project Kickoff, Requirements, Testing, Change Management, Deployment, Support, and Documentation Integrations are 30% Technical and 70% Change Management Why is that? Standardizing and Streamlining the process internally and with your customers increases the speed to deploy. 6 mo.à 4 mo.à 2 mo.à 2wks Internal request process Customer relationship building and education Expectations (New Requirements & Sign-Off) Not all Networks are created equal What makes a good network from a Supplier perspective? Speed to Deploy Network Reliability Ease of Use Accessibility (Data, Help, Engineers, Mgmt.) Support & Willingness to Partner Transparency Is it easy to work through multiple networks? What do you think? Looks can be deceiving What do you mean by that? 12

13 Our Perspective: Industry Status View B2G Integrations Governments are increasingly utilizing invoices as primary evidence in determining indirect taxes owed to them by corporations. Value Added Tax (VAT) is the most significant indirect tax for nearly all of the world s trading nations, they are reported and paid in full typically monthly or quarterly. Integrations are lengthy, complex, and require heavy Change Management as country invoicing is transitioning from Paper to Electronic. This added step will delay invoicing as there is no guarantee of timely invoice certification. Customer integrations by country are in the hundreds and are part of a big bag deployment. Q1-2018: Mexico, Q4-2018: Colombia and Norway, Q1-2019: Italy, Argentina, and Portugal Ariba Cloud Integrated Gateway (ACIG) 20 to 25 Buyers most of who are large will be utilizing the ACIG Network Many implementations will be global in scope Heavy project management needed on both sides to carefully navigate customer requirements and testing Successful implementations depend on Ariba and Supplier collaborating and sharing the ownership of system coding/ configuration. This can t be one sided. 13

14 Our Perspective: Industry Status View Electronic Field Ticket (eft) Buyer Ticket approval prior to invoicing Successful eft implementations completed between Buyers and Suppliers Not all integrated suppliers are utilizing eft s Customer eft approval lead time and escalation will differ by Buyer Field Ticket validation and Invoice validation may not be done by the same person/ department thus resulting in validating the same information Still a lot of questions to answer many of which will vary by Buyer Piloting will be key to understand Supplier benefits if any and system/ process needs 14

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