The Financial Leadership Series - 2014

Payment Optimization

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Comdata, Inc is registered with the National Association of State Board of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.

State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through it website: www.learningmarket.org.

For more information regarding administrative policies such as registration, complaint, CPE program refund and cancellation, please contact Suzanne Busby at 615-370-7000.

Continuing Professional Education Credits

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• Course Title: Payment Optimization

• Description: In this session, we will present on the topic of “Payment Optimization” and outline how organizations automate their accounts payable departments and manage expenses to streamline internal processes. We will highlight the use of electronic payables to drive supplier discounts opportunities and maximize the procurement process.

• NASBA Credit - CPE: One (1)

• Subject Matter Area: Management Advisory Services

• Program Level: Basic

• Program Prerequisites: None

• Advanced Preparation: None

• Delivery Method: Group Live

Continuing Professional Education Credits

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Payment Optimization

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• Introductions

• Corporate payments landscape

• Understanding the options and associated value

• Thought Leadership Presentations

• Keys to business transformation

• Best Practices

• Summary

Agenda

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• Define today’s current payment landscape and emerging trends

• Identify the key components of an effective payment optimization program

• Identify strategies and implementation best practices

Learning Objectives

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Bob Sneed | SVP of Corporate Payments

Tony Grayson | Director of Disbursements

Tom Dean | SVP, Financial Services

Introductions

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• 40+ years experience

• Productivity improvement, cost reduction and expense management

• Payment expertise, technology innovation and solutions for AP automation

• Provide strategy, implementation and support services for multi-card programs

Comdata is a leading provider of innovative, value-added payment and information solutions

Overview

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Payment Optimization

A frontier in value creation

New advances in payables technology enables organizations to migrate paper-based transactions, to higher-value electronic payments - with complete confidence.

“We are focused on achieving quantifiable

bottom line results through AP automation.”

CFO

AP Automation

Electronic Invoice Presentment

Workflow approval

Expense Management

Payment Optimization

Electronic Payment Corporate Card

Fleet | Purchasing and Travel

2012 Ceridian Corporation. All rights reserved.

“Manual, paper-based accounts payable departments are eroding the bottom line of large and mid-market enterprises by an order of millions of dollars each year….and the stage is set for a major financial makeover.”

The Challenge

11 Sources: Kaiser Associates, RPMG P-Card Benchmark Survey 2010, TowerGroup, Aite Group, MasterCard *All commercial product segments – large, mid, small, public sector)

Commercial Payment Landscape

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Reduce Cost

Enhance Control

Streamline Processes

Margin Improvement

Electronic Payments AP

Virtual MC ACH and wires

Pre-Paid Payroll | Incentive

Commercial card solutions

Fleet |T&E and P-Card

Designed for value creation

Payment Optimization Electronic Payment Applications

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• Cost savings : $1.61 - $8.12

• Administration, bank fees, print stock, toner and postage , lost checks, fraud, positive pay

• Efficiency improvements through automation

• Streamlined procurement with card program

• Online expense reporting with approval

• Employee/contractor payments delivered via debit card

• AP goes electronic with virtual MC payments and ACH

• Discount optimization

• Virtual payments deliver additional discount revenue of 1%-1.5%

Why Leave the Paper Check Behind?

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What % of the payment landscape is still occupied by check?

A. 57%

B. 70%

C. 76%

D. 82%

Question 1.

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Case Study

Privately Held

$2.6B in revenue

80% brand penetration in US households

Pinnacle Foods Group

Program Goals

Reduce cost, streamline business processes and generate additional revenue

Provide a “one-card” solution for effectively managing all discretionary expenses related to travel and general purchasing

Ensure compliance to policy through an online expense reporting tool

Migrate to an e-payables solution to reduce the number of check disbursements

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Case Study

Avg. Cost savings per report ($19.24) $19.24

Actual # of reports (24) 5,400

Avg. Transaction Size $125.00

Transaction $/Year $3,500,000

*Rebate (1.25%) $43,750

Process Cost Savings $103,896

Total Return $147,646

Travel & Entertainment

$3.5M annually

225 cardholders

28,000 transactions

Pinnacle Foods Group

Purchasing Card

$16.5M annually

150 cardholders

38,750 transactions

Avg. Cost savings per item ($40.00) $40.00

Actual # of items 38,750

Avg. Transaction Size $425.80

Transaction $/Year $16,500,000

*Rebate (1.25%) $206,250

Process Cost Savings $1,550,000

Total Return $1,756,250

* Example only - based upon billing and payment terms

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Summary

Pinnacle Foods Group Virtual Card AP

* Example only - based upon billing and payment terms

Avg. Cost Per Check ($5.43) $5.43

Actual # of virtual cards/ Year 10,000

Avg. Transaction Size $2,850

Transaction $/Year $28,500,000

*Rebate (1.25%) $356,250

Check Elimination Savings $54,300

Total Return $410,550

Program Value Overview

Process Savings Value $1,708,196

Revenue Share* $606,250

Total Program Return $2,314,446

“Comdata provided active

support throughout the vendor

enrollment process,” said Parnell.

“They were able to offer a solid

methodology and industry best

practices to help our program

ramp up quickly. As a result, we

saw an impact to our bottom line

almost immediately.”

Wayne Parnell

Corporate Finance

* Example only - based upon billing and payment terms

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Which of the following are benefits of leaving the

check behind?

A. Cost Savings

B. Streamlined business processes

C. Incremental margin improvement

D. All of the above

Question 2.

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A Suppliers Perspective

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The e.Payment Alternative

An Introduction to Virtual MasterCard Accounts

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• Design your “ePayment” strategy

• Stratify the vendor master

• Leverage a variety of payment modalities

– Commercial Card

– Virtual MC payments

– ACH with a discount

– Check (extended term)

• Collaborate and Communicate

• Ensure ongoing vendor enrollment

Program Framework

“The move from check-to-electronic payments

requires a disciplined approach with effective execution on a

sustained basis.”

Structuring Your Electronic Payments Program

2012 Ceridian Corporation. All rights reserved.

Vendor Enrollment Execution is the Difference

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Understood Value Proposition

Cost savings | Revenue generation | Efficient business process

Program Strategy

Executive Sponsorship

Organizational Commitment

Communication Strategy

SMART Goals

Integrated systems approach

Vendor management

The Move to Electronic Payments

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Which of these is important when launching an e-payables program?

A. Executive sponsorship

B. Communication Plan

C. Effective Supplier Segmentation and Management

D. All of the above

Question 3.

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Tony Grayson | Director of Disbursements

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Tom Dean | SVP Financial Services

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Start the Discussion

Cost savings

Revenue generation

Efficient business process

Complete a supplier analysis of your file

Introduce a “Game Changer!”

Start the journey and path to wealth creation

Next Steps

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If you are seeking CPE

credit hours for this session, please:

• Sign in on the designated sign-in sheet

• Turn in your completed quiz/survey sheet to the Room Monitor to obtain your certificate.

CPE Credit Hours

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Bob Sneed Senior Vice President of Corporate Payment Solutions, Comdata Bob Sneed is responsible for business development and growth of corporate

payment solutions into large markets. During Bob’s 20 year tenure with the organization, he has used his extensive experience with business development and systems integration to enable Comdata to capitalize on emerging trends, and he was instrumental in the design, deployment and sale of Comdata’s MasterCard Multi-Card Payment Solutions with particular emphasis on the emerging trend of e-Payables. Bob is a member of NAPCP, AP Network and IOMA and is a frequent speaker at various industry conferences.

Recent speaking experience includes: Institute of Financial Operations Fusion Conference – 2012 National Association of Purchasing Card Professionals (NAPCP) Annual Conference –2011 Healthcare Financial Management Association (HFMA) Conference – 2011

Biography

2012 Ceridian Corporation. All rights reserved.

Thank you.

Bob Sneed, SVP of Commercial Payments

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