Recipe for Success Automating Invoice Receipt and Approvals May 18, 2017

Transcription

1 Recipe for Success Automating Invoice Receipt and Approvals May 18, 2017 Andy Ai PNC Treasury Solutions Group Rick Hayden DeVry Education Group

2 The Menu is Changing Current state and perceptions of the changing environment 2

3 Current State 91% of corporates are under pressure to reduce costs and improve control (IAPP) 3

4 Current State Largest cost 4

5 Current State Current invoice processing can be time consuming and costly Invoice mailed to individual who purchased good/service Invoice sits on desk or is misplaced Mailed interoffice to central location/ap department Approver may have other priorities and not attend to invoice in a timely manner Route for approval and G/L Code approval level satisfied A/P Verification Manual entry into ERP system May result in duplicated payments or vendor calls File paper invoice Payment created Retrieve paper invoice and match to payment Human error from manual entry holds up payment of invoice or causes additional backend work Refile paper invoice Send invoices to offsite storage Company not able to take advantage of standard discount 5

6 Top Priority for Next 3 Years CFO vs Operational Leadership View Finance Cost Cutting/ Efficiency Operations Product and Service Quality Inorganic Growth Organic Growth Source: Partnering for Performance: The CFO and the Supply Chain, Ernst & Young,

7 Extending Payment Terms Days Payable Outstanding (DPO) Trends Days Avg. Payable A/P Outstanding [COGS/365] Modest Acceleration 35.5 days in days in % Difference Median First Quartile Performers Source: REL (Hackett Group) 2013 Working Capital Survey 7

8 Current State Cash Discount Opportunities Estimated % of Invoices Including Discounted Term Options: 8 12% % of Early Pay Discounts Captured 1 Paystream Advisors Dynamic Discount Management (2012) Other 39.7 Under 10% 50.9% 10-24% % of organizations take offered discount regardless of when actually paid The Hackett Group 1 The Institute of Financial Operations Industry Insights and Emerging Trends in AP Automation (2013) 8

9 How do I know what will generate a better return for my organization? Maximizing Early Pay Discounts How do I balance competing options? Improving DPO Maximizing Purchasing Card Options 9

10 The Perfect Recipe DeVry Education Group Implements Invoice Automation 10

11 Background 11

12 Background Implemented APA system/process and centralized processing to a shared services center Prepared for 12 months configuration, testing, training Deployed May, 2014 thru July, 2015 in US and Jan April, 2016 Non-US Automated the processing of 10,000 invoices/month Continuing to improve based on the business needs 12

13 Solving our Business Problem Invoice processing efficiency Vendor satisfaction Centralization to shared services Cash flow management 13

14 Selecting the Right Business Partner End-to-end product offering Support of our approach Longevity of provider Cost 14

15 What Worked Well Standardization Persistence & relentless roll out Brief, webinar-style trainings System Administrator role Solving data capture failure causes Adding non-invoices to document database 15

16 Realizing Benefits Efficiency Twice as fast with ½ the resources Transformed paperless Outsourced scanning burden to PNC Tighter connection between expense and budget Strengthened internal controls Enabled shared services 16

17 Challenges Vendor Cooperation $ Implementation Time User Acceptance System Compatability Employee Skillset Leveraging to non-us locations 17

18 What we Could Have Done Better Trust our PNC project manager Kept it simpler Use all APA functionality 18

19 Building on the Momentum Continuous improvement Implement additional APA tools CAPEX Contract Management ActivePay Expand outside the US 19

20 Questions? 20

21 Thank You! Rick Hayden DeVry Education Group Andy Ai PNC Treasury Solutions Group

22 Disclaimer This presentation was prepared for general information purposes only and is not intended as legal, tax or accounting advice or as a recommendation to engage in any specific transaction, including with respect to any securities of PNC, and does not purport to be comprehensive. Under no circumstances should any information contained in this presentation be used or considered as an offer or commitment, or a solicitation of an offer or commitment, to participate in any particular transaction or strategy. Any reliance upon the presentation is solely and exclusively at your own risk. Please consult your own counsel, accountant or other professional advisor regarding your specific situation. Any opinions expressed in this presentation are subject to change without notice. 22