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Accelerating E-Invoice adoption and roll-out with SAP
UK & Ireland SAP User Group Conference 2011
20th – 22nd November 2011
Frank Ruland, Line of Business Solutions, SAP AG
Agenda
How SAP E-Invoicing for Compliance Simplifies Financial Operations
• Introduction and SAP Solution Overview
• Customers are Realizing Substantial Value with SAP Solutions for E-Invoicing
• Questions and Answers
Businesses Are More Reliant on Their Network of Partners than Ever Before
“ …thanks to an ever-more-globalized business environment, more large companies now see attractive market
opportunities beyond their borders, further highlighting the need to establish an efficient B2B infrastructure with local
subsidiaries and suppliers.
Gartner, 12 October 2010, Market Trends: Application Infrastructure and Middleware Software, Worldwide, 2009-2014
”
Trend #1: Increasing Complexity of Network
New markets, mergers and acquisitions, global supply chain
Increasing number of business partners and subsidiaries
Trend #2: Accelerated Speed of Business
New product and services introductions; new suppliers and partners
Rapid partner on-/off-boarding due to changing market conditions
Forrester Consulting, Joint Industry EDI/B2B Survey, March 2010
0
5,000
10,000
15,000
20,000
25,000
1,000
+
Interfaces
Partners
500 250 750
Industry Data Confirms Paper-based Processes Are Inefficient and Expensive
PayStream Advisors, IWA Summit Billentis – based on 1.5 page invoice and €60/hour staff cost
Error-Prone Paper-based Processes Are Inefficient and Can Damage Relationships with Customers and Suppliers
1. Customers
Electronic billing mandates
Format and country- specific requirements
2. Accounting & Finance
No universal view of departmental invoices
High cost per invoice
3. Purchasing
Resolving problem invoices
Missed cash discounts
5. CIO/CFO
Increase compliance risks
Higher cost of capital, lower productivity
4. Suppliers
Lost paper invoices
Late payments slow cash flow
Accounting/
Finance
CFO
Purchasing
E-Invoicing Increases Transparency, Productivity, Compliance and Business Partner Satisfaction
Accounting/
Finance
CFO
Purchasing
Suppliers
Customers
5. CIO/CFO
Global visibility
Stronger controls, audits and improved compliance
Integrated systems and processes
1. Customers
Comply with electronic billing goals
Automate processes to improve supplier e-Invoicing
2. Accounting & Finance
Consistent payments across countries and organizations
Lower cost of capital
3. Purchasing
Increased productivity
Greater percentage of cash discounts captured
Lower cost of goods purchased
4. Suppliers
Improved vendor relationships
Reduced DSO
Improved cash flow
Going Paperless Can Improve Speed, Accuracy, and Compliance While Reducing Costs
How do I improve our financial
operations processes?
How do I provide my customers
with paperless bills?
How can I standardize and
accelerate invoice receipt and
retention?
Improve productivity
Compliant record keeping
Complete audit trails
Reduce cost per outgoing invoice
Eliminate paper and postage
Speed compliance with customer
format mandates
Shorten customer-to-cash cycle
times
Eliminate manual data entry
errors: reduce disputes, rejections
and re-submissions
Eliminate manual reconciliation
effort
Increase on-time payment
percentage
CFO Outbound E-Invoicing
(E-Billing) Inbound E-Invoicing
Outbound E-Invoicing SAP E-Invoicing for Compliance
Outbound
E-Invoicing
Digitally Sign Invoice
Send PDF via Email
Send EDI
Check Legal Compliance
SAP Solution
Provide invoices to your customers in the format they
demand
Provide compliant digital signatures
Improve productivity of A/R department accounting
shared-service
SAP Differentiators
Integration: Integrates with SAP back-end systems for
accounts receivables
Support: Solution is covered with enterprise support from
SAP and Crossgate
Scalability: Ability to dispatch large volumes of invoices
from shared-service centers
Inbound E-Invoicing SAP E-Invoicing for Compliance
Inbound
E-Invoicing
Receive Electronic Files
Verify Compliance
Transmit Data to ERP
SAP Solution
Receive electronic invoices via standardized interfaces (PDF invoice,
EDIFACT D96A, signature/verification file)
Automatically verify/perform all required format, content and signatures
Seamlessly transfer invoice data to ERP for further processing,
approvals, and archiving
Improve productivity of accounting department /accounting shared-
service
SAP Differentiators
Internal Control: Verify documents and signatures for all incoming
invoices according to compliance requirements in over 38 countries
Direct Access to Global Partner Network: Leverage SAP’s world class
network of business partners to accelerate adoption by your suppliers
and increase percentage of electronically received invoices
Straight-through invoice management: Transmit invoices to ERP and
invoice processing systems and archiving, improving quality by
eliminating manual intervention
Exchange Electronic Invoices with Any Business Partner in Any Format
Supplier 1
Supplier 2
Trust Center
Customer B
Customer A
Your Company
Email signed
EDI
Archive EDIFACT
Signed
PDF +
XML
Archive
B2B Hub VAN
Electronic
Signature Verification
Signed
EDI EDI SAP E-Invoicing
for Compliance
Supplier 3
Supplier 4
Supplier 5
Customer C
Customer D
Customer E
SAP E-Invoicing for Compliance in the Accounts Payable Process
HUB HUB
EDI
PDF/email
Digital
Signature
Validation
ERP (FI/AP)
SAP
SAP
SAP SRM
Supplier
Hubs and Portals
Payment
iDOC + supporting
docs (e. g. signature,
verification protocol)
SAP E-Invoicing
for Compliance
HUB
Invoice
Mgmt in
ERP
SAP
Archiving
by
OpenText
Document Archiving
& Viewing
Optional
SAP E-Invoicing for Compliance in the Accounts Payable Process
HUB HUB
EDI
PDF/email
Digital
Signature
Validation
ERP (FI/AP)
SAP
SAP
SAP SRM
Supplier
Hubs and Portals
Payment
iDOC + supporting
docs (e. g. signature,
verification protocol)
SAP E-Invoicing
for Compliance
HUB
Automation,
process support
SAP
Invoice
Mgmt by
OpenText
SAP
Archiving
by
OpenText
Document Archiving
& Viewing
Optional
SAP E-Invoicing for Compliance in the Accounts Payable Process
HUB HUB
EDI
PDF/email
Digital
Signature
Validation
ERP (FI/AP)
SAP
SAP
SAP SRM
Supplier
Hubs and Portals
Payment
iDOC + supporting
docs (e. g. signature,
verification protocol)
SAP E-Invoicing
for Compliance
HUB
SAP
Archiving
by
OpenText
Document Archiving & Viewing
Document
Scan
Fax
Paper
OCR
Option by
OpenText
SAP
Invoice
Mgmt by
OpenText
Invoice
recognition
Optional
SAP E-Invoicing for Compliance in the Accounts Receivable Process
Compliance
Checks
Archiving
(optional) 2.
3.
3.
Digital
Signature
Validation
SAP E-Invoicing
For Compliance
by Crossgate
1.
SAP
SAP ERP
Billing Data
Customer
B Hub
Customer
A
Email + PDF EDI EDI
Archiving
(optional)
multiple outbound
options
ÖAG is an affiliated company of Wolseley plc.
Austria’s biggest wholesaler and distributor of plumbing and heating supplies
Approx. 800 employees
Total turnover EUR 300m per year (2010/2011)
83 branches located all over Austria
SAP since 2007
Cooperation with Crossgate since 2009
FSE OB10
Eurolog
PGS Crossgate
Internal arrangement was not satisfactory
Two-tier selection process
Main selection reasons: ◦ Offering and pricing (the only provider
with all EDI processes plus E-Billing)
◦ Cooperation with SAP
◦ Best customer liaison and support
◦ Most transparent charging method
FSE OB10
Eurolog
PGS Crossgate
Outbound ◦ Initial situation
~ 80.000 invoices per month via post
~ 1 million invoices per year via post
~ 17.000 invoice recipients
◦ SAP® E-Invoicing for Compliance by Crossgate
◦ PDF document with qualified electronic signature
◦ 3rd party verification protocol
◦ eRollout Portal / first contact to customers
Inbound ◦ Initial situation
~ 16,000 incoming invoices/month
~ 1,700 suppliers
◦ SAP® Information Interchange by Crossgate
◦ EDIFACT format from suppliers
◦ Communication from Crossgate via IDOC
◦ EDI (+ PDF document) + monthly statement
◦ Plausibility check – automatic clearing
Outbound ◦ 2,500 customers now use E-Billing
(invoice quota ~ 20 %)
◦ Packed in ZIP-file – later one document per e-mail
◦ Fiscal aspects problematic (uncertainty)
◦ Intense initial customer support
◦ Internal processes and communication very important
Inbound ◦ 14 suppliers live (invoice quota ~ 20 %)
◦ 31 in pipeline
◦ Order references need to be correct
(order number, position number, article codes...)
◦ Test-phase crucial for success
Cost reduction ◦ Printing/paper/postage costs
~EUR 25.000/year*
~EUR 360.000/year^
Faster delivery via e-mail / earlier payments
Storage of invoices
Competitive advantage with automatic E-Invoicing for our customers
Reduction of paper usage (approx. 4 trees+)
* Resource: Business case ÖAG AG
^ Savings potential 3 EUR/invoice with handling costs (resource: Accenture) + 1 tree = 80.500 sheets of paper (http://science.howstuffworks.com)
Reduction of errors from OCI (automatic EDI)
Reduction of handling time (could be up to 100 %)
Cost reduction ◦ Employee costs (~EUR 50.000/year)
Master data quality
Customers are Realizing Substantial Value with SAP Solutions for E-Invoicing
100% secure and compliant e-Invoicing
Considerable cost savings and optimization of processes
Transparency along the whole process
1,100 Dealers within 7 Weeks
Easy and rapid entrance to e-Invoicing
Achieved and maintained a 100% Customer retention rate
Experienced a corollary 5% productivity improvement in credit and receivables
Achieved 20% to 50% reduction in bad debt risk, and 20% to 40% faster access to information
10% to 20% reduction in time needed to collect credit information and enter data prior to a sale
What Does This Mean for Your Business?
Financial Operations
Ensure compliance in all relevant countries
Meet sustainability goals by driving paperless business networks
Increase productivity so staff are focused on activities that add the most value
Receivables
Reduce Days Sales Outstanding (DSO)
with automated e-billing processes
Reduce cost of receivables processing
while ensuring timely invoice delivery to
customers
Payables
Achieve invoice processing cost reduction,
maintain accuracy and capture more
discounts
Pay vendors on time and accurately,
improving vendor relations
Top Executive Issues
Manage Costs and Complexity NOW, without Compromising the FUTURE
Simplify landscape by eliminating point to point
integrations; rich content repository of partners
Extend the value of your existing investments without
rip/replace; Minimize exposure to risk of/process
breakpoints; ensure compliance and regulations
Fast start with predictable costs
Consistent foundation that
enables you to connect ,
transact, collaborate with
a collaborative business
network at the speed of
business
+ +
Now Future
SAP Value Engineering and Team Analysis
Manage
Complexity
Manage
Change Manage
Costs
Line of Business Technology CXO
Easy to Connect: Instant Access to an Open, Industry-optimized Global Business Network with 60,000 Global Partners
SAP Business
Network
60,000+ Partners Connect
Transact
Collaborate
Production LSP
Mfg. Warehouse
Supplier
Government Retailer
Distributor Financial
Services
LSP
Bank Others…
YOU
Eliminate expensive point to point connections with Crossgate Content repository
Easy to Extend: Deep B2B Pre-integration within SAP Business Suite for Mission Critical Processes
3rd Party Solutions
SAP Netweaver Process Integration
SAP ERP
SAP Supply Chain Management
SAP Procurement
Other SAP Solutions
SAP and Non-SAP Solutions
Warehouse
End customer
…
Financial
Services,
Government
Logistics
Service
Providers
and Carriers
Retailer
SAP and Non-SAP Solutions
Financial
Services,
Government
Production
sites
Suppliers
Logistics
Service
Providers
and Carriers
Outsourced
Manufacturers
Orders In-/Outbound
Orders Ack. In-/Outbound
Invoice In-/Outbound
ASN In-/Outbound
Delivery Forecast In-/Outbound
Remittance Advice In-/Outbound
Delivery JIT In-/Outbound
Inventory Report In-/Outbound
Self Billing Invoice In-/Outbound
Shipment In-/Outbound
Enterprise Service
Other Processes, Docs, etc.
Crossgate Crossgate
…
Leverage Ready-to-run B2B content maintained over lifecycle
Thank You!
Contact information:
Frank Ruland
CROSSGATE Director, Line of Business Solution,
Stand S-41 Business Networks and B2B
King’s Suite SAP AG [email protected]