The Henkel e-invoicing Story. Joerg Raeuber London,

Transcription

1 The Henkel e-invoicing Story Joerg Raeuber London,

2 Content 1. Introduction 2. Initial 3. Evaluation 4. The Project 5. Conclusion 6. To be continued 2

3 Henkel Corporate Group of approx. 200 ACs Some employees Consumer Goods sector 3

4 Three areas of competence A global leader in brands and technologies Laundry & Home Care Beauty Care Adhesive Technologies 4

5 Almost a decade of Shared Services at Henkel 1 center 1 region 1 function centers 3 regions Cross-regional processes Additional functions Mexico City (Mexico) since 2011 Bratislava (Slovakia) since 2006 Manila (Philippines) since centers All regions Most functions Global consolidation of specific processes First business processes Necessity of aligned processes and increasing automation 5

6 Purchase To Pay Requirements Audit PTP Finance Purchasing PTP E2E process optimisation will increase efficiency, effectiveness and compliance 6

7 Automated processes in scope PTP Self-Invoicing / Precalculation e-invoicing Excel / txt upload e-invoicing is a new target process with a high potential of automation 7

8 PTP best practice in Henkel Priorities 1. Self-Invoicing 2. e-invoicing 3. EDI / Excel upload 4. Invoices with Purchase Order 5. Invoices w/o Purchase Order PTP Posting WEU Number of booked Invoices Split of invoices per booking type in % Jan 12 with PO without PO ERS EDI e-invocing Total with PO 64,72% without PO 11,14% ERS 19,30% EDI 4,83% e-invocing e-invoicing enables automation of invoices with Purchase Order, which cannot be processed via Self-Invoicing Globally approx. 1,25 million paper invoices p.a., thereof 0,85 million with P.O. High Potential WEU, CEE, NA mean e-invoices / year 8

9 Provider evaluation based on qualitative criteria OB10 succeed Criteria OB10 Competitor 1 Competitor 2 Competitor 3 VAT Compliance PO Validation Global Scope Maturity of solution Customer References Onboarding Capabilities & n/a Concept Risk for Project Delays Strategic Fit Finance Strategic Fit IT

10 Why did Henkel choose OB10? Positive business case for e-invoicing with OB10 Business case strongly dependent on assumptions for invoice volume and error rate (quality) End to end optimisation prerequisite for an efficient e-invoicing process (e.g. quality and e-transfer of P.O.s) e-invoicing is future technology -> more suppliers will join the platforms -> prices will decrease Recommendation: e-invoicing is a strategic investment with a positive Business Case Implement e-invoicing based on OB10 in WEU, CEE and NA - review global potential afterwards 10

11 Project expectations and success criteria Fast and smooth onboarding of targeted suppliers P.O. Services including P.O. Convert Straight Through Processing High Quality of invoice postings User-friendly error handling Legal / Tax compliance for all e-invoices Top management support 11

12 Project characterised by two streams Plan Analyze & Design Technical implementation Build Test Deploy * Preparation Execution Wave I * Onboarding of xxx agreed suppliers Onboarding campaigns Execution Wave II Implementation Contract Kick-Off Blueprint Build Test Technical Deploy Onboarding campaigns Preparation Internal communication External communication Supplier data analysis Training Execution Supplier enrolment Refer to Buyer process 12

13 How Henkel Used OB10 Best Practice Didier Lombard OB10 PM

14 Early stages of the project Organised project team Clear vision OB10 was complementary to self-invoicing solution Henkel buy-in achieved at all levels and in all countries Careful section of suppliers Good letter 14

15 The Project Enrolment process Refer to buyer process Rejection of paper Moving to business as usual Workshop with AP Team Increasing scope - New countries - Lower Volume suppliers 15

16 Procurement played their part Engagement as early as possible Procurement sponsor at senior level Good messaging within Henkel Second level refer-to-buyer process 16

17 Project s results using OB10 Milestones WEU live since Jan 2012 main release of 800 suppliers, 45% of invoice transaction volume CEE live since May % of in scope volume in a committed status at OB10 Constant ramp up of transaction volume now over 4K a month Greater transparency Improving efficiency due to increase of auto-posting No scanning Saved 412 trees to-date 17

18 PTP automation 2012 WEU Development of e-invoicing volumes and ratio PTP Posting Number of booked Invoices Split of invoices per booking type in % Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 with PO without PO ERS EDI e-invocing Total with PO 64,72% 68,46% 68,42% 67,01% 66,03% 64,27% 62,96% 60,71% 58,75% without PO 11,14% 9,11% 9,32% 8,41% 8,22% 9,07% 8,32% 7,19% 6,55% ERS 19,30% 18,43% 17,88% 18,74% 18,21% 17,30% 17,07% 20,23% 19,88% EDI 4,83% 3,91% 3,92% 3,80% 3,71% 4,48% 4,68% 4,45% 5,02% e-invocing 0,09% 0,46% 2,03% 3,84% 4,87% 6,98% 7,41% 9,80% 18

19 Status November 2012 WEU & CEE Delay in project caused by Henkel IT due to architecture changes Initial target volume of e-invoices / year to be achieved by end of year suppliers live Weekly project calls between OB10 and Henkel Continuous improvements, such as Supplier Grouping, multiple V.A.T. numbers, P.O. change and no P.O. rule WEU / CEE Wave II with another 375 vendors about to start 19

20 The story continues - next steps NA & APAC 2012 NA project launched in Sep 2012 APAC to be kicked off in Nov Wave I NA Wave I APAC Roll-out e-invoicing to 2nd SSC 20

21 Questions?