Dramatic Shifts are Occurring, Is your Company Innovating ... · The Accounts Payable &...
Transcript of Dramatic Shifts are Occurring, Is your Company Innovating ... · The Accounts Payable &...
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 5/31/2016
Innovation & Automation in Accounts Payable:
Dramatic Shifts are Occurring, Is your Company Innovating
Ahead of the Curve or Caught in Neutral?
Restricted © Siemens AG 2016 All rights reserved. intranet.gss.siemens.com
FSS at a Glance
Siemens Functional Shared Services NAM
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FSS is a large captive Shared Services organization,
with a broad portfolio of services
AFS Portfolio:
Accounts Payable
Accounts Receivable
Closing & Reporting
General Ledger
AFS Key statistics:
Employs 2,400 FTE1)
12.5 Mio. accounts payable
7 Mio. accounts receivable
BSS Key statistics:
Employs 450 FTE1)
BSS Portfolio:
Global Marketing
Services
Customer Management
Services
Mergers & Acquisition
SCMS Key statistics:
Employs 650 FTE1)
406,000 Purchase Orders / year
Calculated productivity of 3,265 purchase
orders per FTE
SCMS Portfolio:
PO Processing
& Clearing
OneSRM User
support
Catalogue
Management
HRS Portfolio:
Recruiting & Staffing
Learning & Development
HR Admin & Payroll
HRS Key
statistics:
Employs 2,300
FTE1)
4.4 Mio. travel &
expense claims
330,000 pay
checks per month
200,000 pensioners
per month
1 Based on figures of FY12 (Actuals rounded)
Global Mobility
Expense Reimbursement
Health Management
FSS currently employs
6,000 FTEs1)
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Functional Shared Services North America Background
Established in 2000 – at that time as a separate legal entity
U.S. Headquarters in Orlando; offshore team in India
Shared Services location decision driven by proximity to Siemens businesses
No mandate: service-by-service, business-by-business; selling exercise still going!
Dual reporting lines – to U.S. functional heads and to global in Germany
Transactional billing model – expectation for ongoing price reductions
Siemens U.S. business very decentralized: 4 strong, independent Sectors
Sectors own ERP’s – sometimes local, sometimes globally; we work in approximately
16 ERP’s
In-house I.T. team supporting H.R. platforms across North America and other tools
(e.g., Workflow Solutions)
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FSS Organizational Structure Cluster: North America
Accounting & Finance
Services (AFS)
Supply Chain Management
Services (SCMS)
Human Resource Services
(HRS)
Service Delivery Model
Indirect Material Procurement
SRM Support
Import / Export Compliance
Procurement and SRM – offshore
(captive) operations
Import/Export - onshore
Accounts Payable
Intercompany Accounting
Sales/Use Tax
Property Tax
Master Data Maintenance (vendor,
customer)
Abandoned, Unclaimed Property
General Ledger, Closing & Reporting
Fixed Assets
Accounts Receivable (Cash Apps)
Combination of on-shore Key Account
Management, off-shore (captive)
operations, and outsourcing
Payroll
HRIT
HR Administration
Global Mobility Services
Relocation Services
Recruiting and Staffing
Administration
Expense Reimbursement
Primarily onshore
Support Functions
Finance / IT / HR / Quality / Project Management / Communications / CRM
Total Headcount Onshore:
330
Offshore:
250
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Moving to World Class will deliver significant
benefits for Siemens
We take non-core processes of businesses and make them core to us
We increase our customers’ productivity and generate savings
We ensure transparency, quality and compliance in all processes
We understand our customers’ business requirements
We help the businesses to fulfill their growth targets
What is in it for Siemens?
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Siemens Global Shared Services NAM
Electronic Invoicing Journey, 2008 - 2015
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Defined Objectives & Goals for Automation:
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• Increase eInvoice submission and eVouchering can assist
SOCs to reduce cost associated with Siemens 20% SG&A
cost reduction initiative
• Two primary goals:
− 90% Electronic Invoicing submission
− 95% Electronic Vouchering success rate
Enable Siemens Business Units to reduce cost and improve quality in
the Accounts Payable process through increased electronic invoice
submission and vouchering.
Aggressive rollout to exceed the Siemens 22% G&A cost reduction
target in the area of Accounts Payable within one year.
80% electronic receipt of invoices
95% e-vouchering / posting rate of an electronic invoice
Objective
Primary Goals
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Vision of Siemens AP:
1.Take the AP function beyond transaction processing into more strategic
partnership and value-add activities.
2. Provide significant cost savings to the Siemens operating companies that
we support.
Siemens Global Shared Services NAM
2008 2015
Siemens Business Unit Divisions 26 50+
Invoices Processed 1.4 million per year 1.5 + million per year
Global Supplier Base 63,000 over 100,000
Siemens Real Estate, A Division of Siemens Corporation Siemens Financial Services Siemens Industry, Inc.- INC-MVSG
Siemens Capital Company FSS North America, A Division of Siemens Corporation Omnetric Corp
Siemens Credit Warehouse, Inc. Siemens Corporation, Corporate Technology, A Division of Siemens Corporation Siemens Medical Solutions (P40)
Siemens Energy, Inc. SMI Holding LLC Siemens Healthcare Diagnostics (P40)
Siemens Generation Services Company Siemens Philanthropic Fund Siemens Medical Solutions (P41)
Siemens Fossil Services Inc. Siemens Foundation Siemens Healthcare Diagnostics (DPC/BAYER)(P40)
Siemens Power Generation Operating Services Company Siemens Caring Hands Siemens Canada Limited
Siemens Power Generation Service Company, Ltd. Siemens Industry, Inc - SBT Siemens Building Technologies (Canada)
Siemens Power Generation Service Company, LTD - Mexico Branch Siemens Industry, Inc - SEA Corp Siemens Transformers
Siemens Power Generation Service Company, LTD - Puerto Rico Branch Siemens Industry, Inc. - SII Siemens Milltronics Process Instruments Inc.
Siemens Energy, Inc (Wind Division) Siemens Electrical, LLC Trench Limited
Siemens Demag Delaval Turbomachinery, Inc. Siemens Industry, Inc.- SII-RA-SII-CT, RITS Siemens Healthcare Limited
Siemens Energy Inc, Oil and Gas Division Siemens Postal, Parcel & Airport Logistics, LLC Siemens PLM
Siemens Corporation Siemens Industry, Inc. - STS Siemens PLM Canada
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AP Automation
Key Performance Indicators FSS (US & CAN)
2008 2009 2010 2011 2012 2013 2014 2015
Accounts Payable
Invoice
volume
1.2M 1.8M 1.8M 2.1M 1.8M 1.7M 1.7M 1.8M
Electronic
Invoice
Submission
41% 56% 69% 77% 77% 81% 84% 86%
Electronic end
to end
26% 48% 55% 62% 63% 69% 70% 71%
Electronic
payment
61% 67% 76% 78% 82% 82% 85% 88%
Inquiries per
Mo
NA 31,770 16,447 9,420 8,367 6,922 6,468
6,257
IOL Mo Hits NA 39,796 53,599 74,488 75,858 76,144 70,704 67,075
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Electronic invoice submission breakdown
Submission method 2015 Invoice Vol %
Corporate EDI 22.72%
Direct Insite (IOL) EDI 6.17%
Paper 16.39%
Web Non PO (IOL) 1.97%
Web PO Flip (IOL) 52.74%
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E-invoicing and end to end process automation
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E-invoicing and end to end process automation
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E-invoicing and end to end process automation
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Customer self service inquiry tool
Self Service Invoice Inquiry
All employees and Vendors have access to IOL to look up the status of any
invoice. They simply search for the invoice in IOL:
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Customer self service inquiry tool
If assistance is still required after researching and reviewing an invoice
status in IOL, an inquiry can be sent to the customer service support team.
Select the invoice (1) and click the “Inquiry” icon (2) to open a pre-
populated form for questions. (3) Complete the form by entering your
question in the “Please Enter Inquiry Details” and then select “Submit
Inquiry”.
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Customer self service inquiry tool
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(3) Complete the form by entering your question in the “Please Enter Inquiry
Details” and then select “Submit Inquiry”.
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Customer self service inquiry tool
For Non-invoice inquiries or when the invoice cannot be found in IOL, use the “General
Inquiry” found under the “Non-Invoice Inquiry” section. The form will be pre-populated
with the user’s contact details. Required fields are inquiry reason, Siemens Operating
Company and the Reason for Inquiry. After completing the required fields, select
“Submit Inquiry”.
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Automated Survey and results providing
feedback for process improvement
Automatic Survey – A survey is emailed to all AP inquiry submitters (both phone
and IOL) when each C&O ticket is resolved. The results of the survey are compiled
in Survey Monkey and sent monthly to our Customer Service Team where they
generate the USI score and analyze the feedback. This feedback provides us
valuable data to:
• Identify areas for process improvements and re-train agents if necessary
• Educate vendors and employees on the AP process to further reduce inquiries
• Constructive feedback from customers on how we resolved their inquiry – both
positive & negative
• Red Alerts for ratings of 4 and below - we reach out to the customer and
determine the root cause for the negative rating and any corrective actions
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Customer Survey scores
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50
Operating
Companies
SAP
50
Operating
Companies
SAP
Solution Overview
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50
Business
Units
SAP
EZ-AP
Vendor
Invoice
Data
Store
Web Entry,
PO Flip &
Spreadsheet
Invoices
Direct
Integration
Invoices (EDI or XML)
Direct
Insite
Solution
Vendor Self
Service Inquiry
Validation,
Increased
eVoucher
success rate
Direct
integration
Scan for Paper
invoices
No more paper
All invoices converted to one standard
New PO/PO Change
Invoice
Suppliers 100,000+
Workflow 16+ ERPs
Paper
Invoices
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Key Strategies for e-invoicing Implementation
Aggressively targeted high-volume suppliers
Targeted problematic, poor quality paper invoice suppliers
Established a Vendor Adoption Committee with representatives from all Business Units
and weekly meetings
Changed the Bill To Address on the PO to reflect the electronic submission method
Established and promoted e-invoicing as “the way of doing business with Siemens”
Provided Procurement groups with standard communication and quick training guides
for suppliers
Required by contract in Terms and Conditions that all new vendors submit invoices
electronically
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6% of Suppliers produce
79% of Invoices
Implementation Strategy:
Targeted High Volume Suppliers
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Established a “Vendor Adoption Committee” with representatives from all divisions.
Internal Education is as important as external communication
Goal of the committee is to set clear objectives, measure results and report to executives
Example of Key Drivers tracking chart:
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Implementation Strategy: Vendor
Adoption Committee
Key Drivers - eInvoicing Requirement SOC SOC SOC SOC SOC SOC SOC SOC SOC SOC SOC SOC SOC SOC
Standard Onboarding package for Vendors
VM E-form back end automation
eInvoicing Awareness Campaign (MarCom
Insert, RFP, Contract Renewals, update T&Cs)
Paper address excluded from Purchase Order
eInvoicing info included on Purchase Order
VAC Team members & Communication of
Targets
TPA/CSP Strategy - ApprovedN/A
Target
Met
IOL Strategy - ApprovedTarget
Met
Target
Met
- Vendors identified - Target 7/16/10Target
Met
Target
Met
- 1 letter sent - Target 7/30/10 Target
Met N/A
Target
Met
- Invoices rejected - Target 8/16/10*Target
Met N/A
Target
Met
E-invoicing requirement placed for new vendors
EFT Campaign (combined with IOL letters)N/A N/A
Automate payment runs
Vendor Adoption Committee RepresentativeNAME NAME NAME NAME NAME NAME NAME NAME NAME NAME NAME NAME NAME NAME
Vendor
Master
E-
payment
E-invoicing
Division Division Division Division
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Lessons Learned
Internal Support
Procurement support is crucial to adopt and sell e-invoicing
Executive Sponsorship is necessary at business units level in Shared Services
Encourage e-invoicing mandate or define criteria for e-invoicing process before Go
Live with internal departments Supplier On boarding
Accurate Contact Information is Key for Recruiting Suppliers
Target 3 types: high volume, high $ value & traditional “problematic” suppliers
Training & Support must be available - including on demand
Prepare quick guides using screen prints
Realize that Behavior Change is hard
Make Service FREE to Suppliers
Sell tool to suppliers – explain benefits
Allow different methods of electronic invoice submission
Ensure dedicated helpdesk and set expectations on supplier support
Self Registration to e-invoicing portal for suppliers is critical Straight Through “Touch less” Processing
Updated PO data must be available in the portal to enable PO Flip
E-invoice with bad information is almost as bad as a paper invoice
Encourage PO Flip
Establish P2P end to end true EDI process if possible
Ensure up to date vendor master data to ensure match with vendor
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What’s Next?
Increase and improve Web AP Inquiry
No more e-mails & fewer phone calls
All inquiries must be submitted through
web portal:
External / Supplier Inquiries
Internal / Employee Inquiries
Global Vendor on Boarding Portal
Data input from Supplier
Reduction in manual effort
Improved data accuracy
Quicker PO placement
Reduced payment errors
Central repository of Supplier data
Invoice Submission
Up front invoice validation
Early Payment Discounts
Projects in place to increase supplier ability to take
early payment discounts
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Customer Service AP Inquiries / Year
Sept 09 Sept 10 Sept 11 Sept 12 Sept 13 Sept 14 Sept 15
Inquiries by
Calls 7,260 4,458 2,312 2,411 1,854 1,338 1,477
Inquiries by
Emails 24,510 10,325 899 1,043 761 301 497
IOL Web
Inquiries 1,664 6,209 5,102 4,345 4,647 5,296
Total Inquiries 31,770 16,447 9,420 8,556 6,960 6,286 7,270
IOL Website
Hits 39,796 53,599 74,488 75,858 76,144 75,199 74,791