Outline

• Introduction to SAP FSCM• Pain points and benefits• The journey• Product overview• Q&A

Introduction

• Implementing SAP Financial Supply Chain Management (FSCM)to streamline, increase transparency & make the relevant businessprocesses more effective

• Treasury, dispute, collection, credit management and bankreconciliation fully automated

• Credit management enhanced with data on customer behaviour

• Enhanced security in collection & payment processes

• FSCM hosts an online portal

• Supports the entire communication

Pain points& benefits

Pain points Benefits

Collecting invoices from KPA - a time wasting andinconvenient exercise. Sometimes customers waitfor the invoice

Customer not able to access his account detailsin real-time

No itemised records for any debt collection efforts

Treasury risk management processed manually withrecords limited to only accounting entries

Compiling & physically delivering dispute letters is timewasting and occasional loss of documents (no trace)

The customer can access invoices within a splitsecond of billing

Customer has the latest information at that time

Fully automated with records of individual debtcollection actions available

Fully automated with registration & evaluation of allinvestment orders recorded in system

Online applications for disputed invoices, includingattachments of related evidences while allowingtrack processing online

Pain points and benefits

Pain points Benefits

The manual release of blocked sales orders uponpayment of outstanding debt necessitates processingdelays

Disputed amount erodes credit limit

Download payments processed in SAP & upload toCitiDirect with manual bank reconciliation

Paper invoice has to be captured into the customerinternal systems

Physical movement of resources to secure invoices,make payments and lodge + follow up disputes is costlyand time wasting

Blocked sales order automatically released uponacknowledgement of payment of outstanding itemsby bank

Disputed amount automatically discounted from creditlimit

Single payment approval and automated bankreconciliation

Customers can download invoices into their accountspayable systems

Ability of customer to transact from the comfort theiroffices thus huge savings on fuel, time, mobility risksetc.

Pain points and benefits

System implementation and upgrade

• Manual processing to 2002

• Immediate past in SAP 4.6 C/D

• SAP 4.6 D

• SAP 4.7

• SAP Enterprise

• SAP ECC 5.0

• SAP ECC 6.0 (EHP 5)

Benefits

• Increased automation of transactional activities + paperlessapproach

• Invoicing/receipting/leave/travel/stationery

• Increased planning & analytics- SEM performance measures KPI- GRC risk management KRI

• Enhanced reporting features – business intelligence(dashboards)

Improvements

Check creditworthiness

Cash & liquiditymanagement

Electronic billpresentment & payment

Disputemanagement

Issue invoice ReconcileSettle & payCollect cashResolve disputesFinance workingcapitalForecast cash

Settle & pay ProcureFinance workingcapital Forecast cashReceive

invoicesResolveexceptionsApprove invoices

Treasury & riskmanagement

Invoicemanagement

Order2Cash

Bank relationshipmanagement

In-housecash

Creditmanagement

Collectionsmanagement

Purchase2Pay

Extended financials

KSh

Reconcile

Credit management

• Increase the financial visibility of ourcustomer base

• Control our customer’s credit exposure• Optimise terms for our customers• Reduce amount of bad or doubtful debt• Credit limit management• Credit case• Credit rules engine• Credit information

Biller directObjective

• Extend traditional billingprocedures to customers

• Electronic invoicing to customersbusinesses

• Electronic payments fromcustomers

• Integrate customer service withfinancial services

KSh

Biller directFeatures

• e-Invoicing• Invoice download• Display of bill and payment history and

account balances• Payment using biller direct• Offsetting credits with open items• Integration with dispute management

and cash management

Biller directBenefits

• Lower cost of billing with no printingand postal charges

• More precise cash management andimproved liquidity planning

• Data integration with AR, AP, cashmanagement & dispute management

• Fewer accounting & settlement errors• Immediate access to invoice copies

Collections management

• Establish a customer centricreceivables management

• Evaluate, identify and prioritiseaccounts

• Collect receivables proactively

• Process optimisation for high volumesof open items

Collections managementFeatures

• Collection strategies• Daily work lists for collection specialists• Automatically created based on

collection strategies• Functions to process and view open

receivables• Collection procedures• Integration with dispute management

and credit management

Dispute management

• Reduce days sales outstanding andincrease customer profitability

• Identify issues and disputes earlier inthe payment cycle

• Track and monitor reasons that driveDSO

• Streamline process of disputeresolution

Dispute managementFeatures

• Integration with workflow incl.e-mail notification of processors

• Integration in financial but alsoin logistical processes

• Correspondence capabilities• Support of different communication

channels

Bank communication management

• Electronic interface with bank

• Electronic receipt of money

• Secure electronic payments tovendors

• Auto bank reconciliations

• Track and monitor reasons thatdrive DSO

Bank communication management

Corporate client

SAP bankcommunication

management

Accounts payable

Account receivable

Treasury

Other

SAP NetWeaverprocess integration

SAP integrationpackage for SWIFT

SWIFTNetSWIFTNetinterface

Treasury & risk management

• Financing & investments• Automated loan and investment

scheduling• Manage debt and investments more

effectively• Monitor and manage the full

spectrum of financial instrumentswith greater transparency and control– for better decision making andresults

Treasury & risk managementFeatures

Products Process Reports

Cash & liquidity management

• Manage cash flows & liquiditypositions for the organisation

• Manage bank accounts

• Optimise payment strategy

• Assure solvency

• Optimise liquidity positions

• Plan cash flows

Cash & liquidity management

• Real-time integration of SAP cashmanagement with operativesystems

• Cash concentration

• Flexible view on cash position &liquidity forecast

• Centralised system for medium-and long-term liquidity planning

Thank youQ&A