AP Metrics. The power of metrics for positive change. Debra Johnson Zappos Merchandising, Inc. Accounts Payable Supervisor

Transcription

1 AP Metrics The power of metrics for positive change Debra Johnson Zappos Merchandising, Inc. Accounts Payable Supervisor

2 About Zappos Zappos.com is a service company that happens to sell shoes, clothing, etc. Acquired by Amazon in 2009 Headquartered in Downtown Las Vegas Made Fortune s 100 Best Places to work Founded in % of items inventoried. Over 9 million items in FC s Over $1.0 Billion revenue(2009) and continues to grow Approximately 1,500 employees

3 Trade AP Landscape Live on SAP Financials since 2007 SAP ECC 6.0 Interfaces (PIG) Goods Receipts from Amazon Warehousing Purchase orders from Zapporo (internally developed system)

4 Non-Trade AP Landscape SAP ECC 6.0 Purchase orders from POiNT Invoices processed through OpenText VIM (Vendor Invoice Management)

5 Accounts Payable Facts Headcount: 10 Trade AP; 3 Non-Trade AP Centralized AP in Las Vegas, NV Non-Trade Invoices # Non-Trade Invoice per year 20,000 25,000 % PO Based 30% Received 25% via EDI (not run thru OT) 75% via , mail, fax Trade (Inventory related) Invoices # Trade Invoice per year 250, ,000 % PO Based 100% Received 90% via EDI 10% manual

6 Non-trade AP Business Challenges Too much paper No streamlined AP workflow process Invoice visibility for AP Inefficient manual invoice approval and entry process Risk of late payments Challenging support environment Difficult audit process

7 Trade AP Business Challenges Too much paper (EDI) Reduce number of paper checks (ACH) Invoice visibility for AP Early payment process Risk of late payments Challenging support environment Difficult audit process

8 Trade Metrics Total Number of Invoices Open aging per rep per week Processed by system vs rep Over 30 days Posted by each rep per month Per week per rep Received on paper per week per rep Number of Active vendors with product per week Statements reconciled per week Vendors using portal Breakdown of payment types: ACH, check, etc. Aging Gross Receipts without invoices Year over year comparison Early Payment Discounts 8

9 Non-Trade Metrics Total Number of Invoices Processed Non-PO PO Number of Days to approve an invoice Days to approve a Purchase Order Breakdown of payment types: ACH, check, etc. Percentage of invoices paid on time 9

10 Vendor Payments Goal Reduce number of check payments Metric Breakdown of Payment Types Tools Switch to ACH Switch to Credit Card 10

11 Vendor Portal SaaS Goal Metric Tools Offer online self-help portal for vendors to reduce AP calls and promote early payment discounts Number invoices over 30 days Number of vendors using portal Early Payment Discounts On-line SaaS vendor portal 11

12 Working invoices 30 days Goal Metric Tools Process all invoices over 30 days Invoice 30 days Aging # of invoices still open per rep for the week Unpaid parked log 12

13 GR/IR Goal Identify missing invoices and clear receipts that were manually paid Metric Aging gross receipts without Invoices Tools Aging gross receipts without Invoices 13

14 Statements Goal Ensure statements are reconciled and we are taking care of our vendors Metric Tools Number of statements reconciled per week by rep Verify all invoices Clears GR/IR Identify manual payments Clear up chargebacks reconciliation 14

15 Work closely with SAP team Goal Metric Tools Systematic changes to improve matching and reduce AP touches Number of invoices processed by system vs rep Number of invoices posted by each rep for the month SAP 15

16 EDI Goal Reduce number of paper invoices Metric How many paper invoices per rep by week/manual process Tools EDI 16

17 Rep Workload Goal Metric Tools Ensure any one rep is NOT overloaded How many new invoices per week by rep Number of active vendors with product per week Reports 17

18 Invoice Payments Goal Ensure invoices are being paid on time Metric Percentage of invoice paid on time Tools Internally built dashboard 18

19 Q&A 19

20 THE END 20