Shearer’s Foods Journey Through Invoice Automation with PNC · Creating Automation Along the...

November 12-14, 2017

Bellagio Resort & Casino, Las Vegas

Shearer’s Foods Journey Through Invoice Automation with PNC



Speaker Introductions

• Michelle Hartman – Shearer’s Foods – Michelle Hartman is the Manager of AP and AR

operations for Shearer's Snacks. She received a Bachelor's of Science degree in Elementary Education from the University of Akron as well as an Associate's degree in Accounting from Youngstown State University. She has worked in Accounts Payable for the past 15 years and celebrated her 5 year anniversary at Shearer's Foods in June.



Who is Shearer’s Foods?

• A leading contract manufacturer of snack products – Potato chips, tortillas, whole grain chips, cheese curls/puffs (and

other extruded snacks), popcorn, pork rinds, rice crisps, wafers, cookies, and both sweet and savory biscuits

• Supplies industries in – North America, Australia, Asia, Central and South America

• Headquartered in Massillon, Ohio – Eleven GFSI compliant state-of-the-art, geographically diverse production

facilities operating in Ohio, Texas, Arkansas, Oregon, Virginia, Iowa, Minnesota, Arizona, Pennsylvania and Ontario, Canada including one of the industry's first platinum LEED® certified food manufacturing facilities in Massillon, Ohio.



Speaker Introductions

• Ben Skvarca – PNC – Ben Skvarca is the Product Manager for Invoice

Automation Solutions at PNC. He has served in the Invoice Automation product group for the past six years, with responsibilities in product management, new product development, as well as consultant services during the sales process and client product implementations.

The seminar that you will view was prepared for general information purposes only and is not intended as legal, tax or accounting advice or as recommendations to engage in any specific transaction, including with respect to any securities of PNC, and do not purport to be comprehensive. Under no circumstances should any information contained in this webinar be used or considered as an offer or commitment, or a solicitation of an offer or commitment, to participate in any particular transaction or strategy. Any reliance upon any such information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Neither PNC Bank nor any other subsidiary of The PNC Financial Services Group, Inc. will be responsible for any consequences of reliance upon any opinion or statement contained here, or any omission. The opinions expressed are not necessarily the opinions of PNC Bank or any of its affiliates, directors, officers or employees.



Who is PNC? • One of the leading financial institutions within the USA

– As one of the nation's top treasury management providers, with it’s corporate location in Pittsburgh, PA assists clients in managing working capital more effectively and transitioning their receivables, payables, investments and information reporting activities from paper to electronic.

• AP Automation Services – Centralized receipt of invoice documents (paper, email and fax) through one of the

largest bank Lockbox networks in the United States

– Integration with one the world’s largest electronic invoicing networks

– Advanced workflow user interface including purchase order matching

– Default general ledger coding with reallocation capabilities

– File validation; ERP integration

– Payment file initiation (Card, ACH, Card and Wire)



Agenda

• Shearers’ Invoice Automation Experience

• Invoice Automation – Lessons Learned

• Future Vision

• Invoice Automation – Critical Drivers

• Questions and Answers



Typical Prior State • Paper Intensive

• Many steps from invoice receipt to approval

• 100% invoices keyed into ERP

Manual Process

Mailed Invoice

Emailed Invoice Print

Scan

Paper to approvers

Approvers Approval & GL Coding

A/P Staff Manual Entry ERP



Invoice Automation Benchmarks

Metrics Best in Class

(20%) Average

(33%) All Others

(47%) Notes

Cost per Invoice less than $6.00 $14.21 $17.61 Fully loaded cost includes sorting the mail, routing invoices to the correct approver, researching accounts for general ledger distribution, identifying duplicate invoices, entering invoice details to ERP system and a myriad of other tasks to process invoices plus document storage.

Invoices Processed per Employee (per month)

4,814

2,308

1,408

In a manual A/P environment, teams spend time repeatedly resolving exceptions from the same sources instead of eliminating them.

Invoice Processing Cycle Time 3.7 days 12.4 days 17.1 days Measured from the time of invoice receipt to payment generated.

Invoice Exception Rate 8.0% 13.1% 16.4% Even a small reduction in the invoice exception rate has a substantial impact in productivity.

Total Percentage of Invoices Processed Using Straight-through Processing (STP)

50.3% 27.0% 12.3% STP refers to "touchless processing" wherein purchase order (PO) based invoices match all of the pre-configured business rules and can be processed without any human intervention and scheduled for payment.

Survey Demographics: 192 A/P Professionals represented as follows: 56% Large (revenue > $1 billion); 22% Middle Market (revenue between $250 million and $1 billion); 22% Small (revenue < $250 million)

Source: Ardent Partners, ePayables 2014: The Quest, published May 2014

ACCOUNTS PAYABLE (A/P) DEPARTMENT STATISTICS



Automation Experience Shearer’s Foods



Prior State Shearer’s Foods

• All invoices printed and stamped, regardless of method of receipt

• Inter-office mailed for coding/approval or scanned for inter-office email for approval

• Invoices printed by approvers, coded and approved, and rescanned back to AP

• Invoices keyed into ERP, printed copies of invoices stapled with checks and filed



Invoice

Receipt

Approval

Workflow

Coding &

Notes

Imaging &

Archive

Shearer’s Foods – The First Step into Automation AP Advantage Processing 1. “Online Filing Cabinet”

Keyed into

ERP



Invoice

Receipt

Approval

Workflow

Coding &

Notes

Imaging &

Archive

Shearer’s Foods – The First Step into Automation

AP Advantage Processing

PO Invoices

keyed into

ERP

Non-PO

Invoices

integrated

into ERP

2. non-PO Integration



Invoice

Receipt

Approval

Workflow

Coding &

Notes

Imaging &

Archive

Shearer’s Foods – The First Step into Automation

AP Advantage Processing 3. PO Matching and Integration

PO Invoices

integrated

into ERP

Non-PO

Invoices

integrated

into ERP



Invoice Automation Lessons Learned Shearer’s Foods • Information Technology must be engaged and ready

– Tightly integrated systems is critical to success

• Paper processes do not always translate in an automated process – Adapt the process to the technology, not the technology to the

process

• Automation is a continuous evolution to achieve optimum productivity and straight-through processing

• Be patient with the technology, but do not hesitate to push for features or functionality that may not be present in the current platform



Invoice Automation – Visions for the Future

Shearer’s Foods • Addition of Purchase Order Invoice Matching to the

utilized features • Supplier portal improvement

– Supplier experience, functionality and value, self-enrollment

• Building functionality to support exceptions to typical invoice process

• Additions to the acceptable means of invoice receipt and loading

• Continuation of the partnership between Shearers and PNC in order to improve the customer experience as well as the product overall



Future State – Shearer’s • # of Invoices Touched by Accounts Payable • Straight-Through Processing % • Invoice Cycle Time • Discount Capture % • Future Accounts Payable Worksets • Additional Automation Goals

Mailed Invoices

Emailed Invoices

Scan & Data Capture

ERP Centralize Invoice Receipt

Approver Workflow

Approval & GL Coding

Archive & Audit

Interface/ Files

Procure

Invoice Receipt

Matching/ Approval

Inquiry/ Terms

Payment

Reconciliation

E-Invoices



Invoice Automation – Critical Drivers Electronic Invoice Network (e-Invoicing)

• Supplier enrollment via Tungsten Network

• Data validations at Network level

• Exception management at the source

Invoice Capture

• Supplier invoice capture via PNC Lockbox

• Defined business rules for matching and validation

• Images and data populated in AP Advantage workflow

AP Advantage Workflow

• PNC’s SaaS web-based solution

• Exception management

• Configurable workflow routing

• Robust Purchase Order matching capabilities

Invoice Capture

AP Advantage Workflow

E-invoice Network



Creating Automation Along the Procure-to-Pay Continuum

Effectively handle all forms of invoices efficiently (e-invoice, paper, email, fax, etc.)

Centralize invoice receipt while leveraging lockbox for quality scanning, imaging and data capture

Utilize configurable workflow management solutions for matching, approval, and increased visibility

Maximize migration to electronic invoicing to lower processing costs and increase scale and accuracy

Employ E-Invoicing Network to develop data management and create integration for STP

Improve visibility for your suppliers, resulting in improved buyer-supplier relationship

Purchas

e

Request

Purchas

e Order

Deliver

y

Receipt

Invoice

Receipt

Match &

Excepti

on

Approva

l

Workflo

w

Coding

& Notes

KPI’s &

Reporti

ng

Payment

&

Status

Imaging

&

Archive

Expense

Reporti

ng

Supplier Portal - for status updates and invoice submittal



Question and Answer



Disclosures

Results described here were experienced by these PNC customers. Results may vary by organization and we cannot guarantee a particular level of results for your organization. PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”) Bank deposit, treasury management and lending products and services are provided by PNC Bank, National Association, a wholly-owned subsidiary of PNC and Member FDIC. ©2017 The PNC Financial Services Group, Inc. All rights reserved.

Shearer’s Foods Journey Through Invoice Automation with PNC · Creating Automation Along the...

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