Can one e-Invoicing provider really serve you? Ever consider Roaming?

15 Well Kept Secrets to Shared Services Success18th – 19th March 2009Millenium KnightbridgeLondon

Soile Hiekkasalmi-Linna

Can One E-Invoicing Provider Really Serve You?

Ever Considered ’Roaming’?

© Metso Date Author Title2



Metso Financial Shared Services

• Established 2004 – 2005• Finland in two locations• Canada, Montreal

• FI/SWE 30 units• CA/US 20 units• not all Metso units MFS customers (yet)

• GL , AP, (750 000 inv. ) AR, Payment, Travel, Payroll

• 2 Finance applications

• Many ERP’s (harmonizations in progress)• 200 employees

INTERNAL

© Metso Date Author Title

INTERNAL

5

AP in MFS today

• Booking practises harmonised • Various applications reduced

• Transparency MFS/Units -• Common Invoice Processing application

• Control of invoice flow improved• Invoices in flow (appr. 1 week)• Payment on time improved (>90%)

• Measurements• FTE – benchmarked

excellent results - upper quarter • Customer surveys - improved during the years,

results being nearly 4 , scale being 1-5• e-invoice % (>40)


E-Invoicing in Metso Group

• Start in the beginning of 2000

• Management decision

• Shared Service Centers in Finland and Canada

• First internal invoices

• Second incoming invoices, big volumes

• Third outgoing invoices


Targets for E-Invoicing

• Fast delivery of internal invoices / month end procedures• closing the books in 4-5 days• e-invoices during the same day

• in mail max. 1-2 weeks, • electronically min. 5-10 min

• Improve and automate invoice handling processes• Automatic update in the data base

• Should be easy • Minimize manual work

• No extra organization or IT specialist


INTERNAL

8

• Cost savings•Target to reduce invoice handling costs

• Invoice processing application broughtthe possibility to receive e-invoices

• costs compared to scanning /target toreduce 50% /invoice, now 80%

• Future visions / expectations • Believe that e-invoicing will be

’de facto’ standard some day


E-invoicing technical strategy

• Common solution as far as possible

• No point-to-point solutions

• Controlled way of exchanging messages andinformation

• One way out from Metso

• One way into Metso


Brokersending

Invoice handling

Outbound e-invoices Inbound e-invoices

Metso Service provider

METSO NET

© Metso11 Date Author Title11

SP

SP

ERPs

OutboundInvoicing

Finance

Inbound Invoice processing

SP

Global / national standards/rules

HUB

SUPPLIERS & CUSTOMERSROAMING

METSO SERVICE PROVIDER

Service provider ZService provider X

Service provider Y

SHARED SERVICE CENTERSMETSO BUSINESS UNITS


Supplier approach in Finland /Sweden

• Big volumes •Suppliers > 10 000 – 14 000

• (FI) Letters to first 50 -100 biggest suppliers (2-3 rounds)• asked the status and possibilities to send /• start sending e-invoices, no due dates orsanctions

• targets 15% 20% 25% etc.

•Personal contacts afterwards

•The results not very good, they were not seen very soon


• (SWE) even more challenging task

• Infrastructure does not support roaming as well as in Finland

• Activation campaing together with our Service providerPresent roaming agreements in Sweden and willingess to negotitate the new ones

• Letter from Metso / different options, no sanctions

• Personal contacts (Service provider)

• Now 10/30 of these are about to start – technically ready

• Supplier Kit – information package


INTERNAL

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• E-invoice projects usually last fairly long timeReluctanceBenefits were not seen or recognisedApplication migrations etc.

• Infrastructure development – roaming agreements helped

• Now over 40 – 70 % of invoices electronically

• Next steps? Sanctions?


Considerations

• Difficult to find the right person(s) in the supplierresponsible for this

• Procurement (own) should have been better informed andmore involved

• Customer is the king – service provider is a third party

• Service provider – good in technology

• Careful thinking how to approach the suppliers


Customer approach

• Customer is a king

• Big customers informed their aims to start receiving e-invoices

first wishing today more and more requiring /demanding

• E-invoicing projects in business units


• Difficulties and problems faced

• Benefits not seen very clearly in business

• Customers scattered globally

• Many customers still not able to receive e-invoices

• Options offered not good or acceptableSeparate portals Demands to join to separate networks

expensiveimpossible to handlevery ineffective processwise


So what are the benefits for the sender?

• Cost savingstransaction fees less than stamps/paper/envilopes(1-2 eur)more effective prosesses –no manual work

• Digital archiveall invoices, also sent in paper with attachments

• Internal invoicingbenefits in month end procesess


Pilot project in USA

• Metso Paper USA Inc. sending invoices electronically to a big US customer by usingthe roaming with two service providers

• A project started in September 2008and was completed in January 2009

• We are able to use the same format ,the same technical solution in our end

• Next steps – to find the possible new customers of these two service providers


Roaming -The only way of to reach allsuppliers /customers at the end

• One technical solutiongives definite cost savings whenthe solution can be rolled out

• Feedback /alerts from one source – simplealerts look the same they can be forwarded from one sourcein Metso to all the needed people in the organization


• One partnerClear roles and responsibilities

• One agreement in the companyCommon pricing Transaction fees based on Corporate volumes

• Partnership with the service providerCommon understanding and knowing each otherNew ’installations’ easier because of that


INTERNAL

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LESSONS LEARNED

• Procurement /purchasers more informed and involved when approaching the suppliers

• Roaming is the future solution to really reachall your suppliers / customers around the world

Documents

Can one e-Invoicing provider really serve you? Ever consider Roaming?