Transcript Document

Presents
The Road to Vendor File Excellence
Sept. 24, 2009
CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
About The Speaker
Sherry DePew, Vice President of Product Strategy &
Solutions Integration for Lavante
• 14 years at Boise Cascade, Director of Shared Services
• President and founding member of Idaho IAPP Chapter
• Treasurer: Oracle/PeopleSoft Supplier Relationship
Mgmt. Product User Group
• President: Oracle/PeopleSoft Accounts Payable Product
User Group
• Co-founder and Board member of Oracle/PeopleSoft Link
Users Group
• As VP of Product Strategy for Lavante, Sherry is
responsible for using her experience as a former Director
of Shared Services to collaborate with our customers to
define Lavante’s P2P solutions
P-2
CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
Agenda
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Your Vendor Master File - A Strategic Resource
Key Goals
Vendor File Issues
A Vendor Management Program
Best Practices
Solutions Demonstration
Questions and Answers
CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
ON-DEMAND SOLUTIONS FOR THE P2P WORLD
Your Vendor Master File A Strategic Resource
• Vendor file is a key corporate resource
• Ownership belongs in AP (87%)
• Many disbursements are made to payees that typically do
not have involvement with purchasing
• tax payments, garnishments, employee
reimbursements, donations and customer refunds are
some examples
Limit who can add or update vendors
• People who can add or update vendors must not
be allowed to process transactions such as
invoices and purchase orders
P-4
CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
ON-DEMAND SOLUTIONS FOR THE P2P WORLD
Key Goals Vendor Master File
•Make accurate and timely vendor
payments
•Reduce duplicate payments
•Comply with laws and regulations
•Catch / reduce fraud
•Know where you spend money
•Know your vendors
•Save money
•Company wide tracking
requirements
•Diversity
•Business Continuity
•Treasury
•Procurement (Contracts)
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CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
ON-DEMAND SOLUTIONS FOR THE P2P WORLD
Know Your Vendors
How are these related?
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Marriott
JW Hotels
Renaissance
Courtyard
Residence Inn
Fairfield Inn
TownePlace Suites
SpringHill Suites
Ritz-Carlton
ExecuStay
Executive Apartments
CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
Comply with Laws & Regulations
Including:
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Independent Contractor and 1099-MISC
Non-Resident Alien and 1042S
Gramm Leach Bliley Privacy Act
Health Insurance Portability and Accountability
Act (HIPAA)
Office of Foreign Assets Control (OFAC)
Foreign Terrorist Organizations (FTO)
Bureau of Industry and Security Lists
Patriot Act
Sarbanes Oxley
Other - Industry, Country, State specific
CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
Cause and Effect
• Third party recovery efforts show the majority
of duplicate payments today are caused by
vendor set up problems and related suppliers
• Records show that 7% of the vendor
population changed their name or corporate
structure each year prior to July 2008
• Experts predict that by the end of 2009 the
rate will increase to 11 to 15%.
• If duplicate vendors are identified and merged
in the vendor database over 75% of duplicate
payments can be eliminated
P-8
CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
Return on Investment
• Purchase Smarter
• Know your full spend with the supplier family
to negotiate better pricing
• Process Smarter
• Reduce the vendors in your active list to
eliminate confusion and errors at the
requisition, purchase order, and voucher
level
• Pay Smarter
• Get the payment to right place the first time
and eliminate stale dating, phone calls, past
due invoices and escheat due diligence.
P-9
CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
Vendor File Issues
Some Vendor File Problems
Missing or Invalid Tax Ids.
Missing or Incorrect 1099 Categories
Names Inconsistent with Tax Ids.
Vendors tied to inventory items with very low
turn rates.
• 35% - 65% of “active” vendors are one-time
vendors
• Resource requirements result in a reactive
approach to updates
• Electronic payments/purchase orders eliminate
the dependency on good vendor data
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P-10 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
A Vendor Management Program
Assess
• Survey Current Situation
• Identify and collect ALL relevant
documentation
• Identify ALL vendor files and data sources
including those used for e-procurement, epayment and p-cards
• Review and verify your actual Vendor Setup
and Maintenance Processes and Controls
against documentation
• Centralize the collection, storage and
updating of all vendor related requirements
in an environment accessible to invested
users
P-11 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
A Vendor Management Program
Cleanup (cont’d)
• Other Vendors You May Want to Look At
• Federal Government Departments and
Agencies
• States
• Local Governments
• Postal Service
• Garnishments
• Petty Cash
• Foreign
• One Time
P-12 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
A Vendor Management Program
Cleanup (cont’d)
Review Possible Duplicates and Decide
• Impact of rules on other files/tables
• Which to keep
• Which to drop
• Which to merge
P-13 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
A Vendor Management Program
Re-Assess
• Verify New Adds and Changes against
Guidelines and Standards
• Review and revise procedures, guidelines and
documentation, as required
• Train and/or Re-train, as required
• Utilize the next generation tools to prevent
duplicates
• Remember to be successful this will have to be
a process, not a project
• How do companies manage this without adding
people?
P-14 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
A Vendor Management Program
Enhance
• IRS TIN - Name Consistency
• Verify Name and TIN against IRS data
• OFAC and FTO Checks
• Check vendors against OFAC / FTO list and
other lists
• Utilize 3rd Party Databases
• Add D&B Numbers
• Add SIC or NAICS codes
• Add Credit Information
• Obtain W-9 or Substitute
• Obtain Minority Owned Business, Women
Owned Business status, etc.
P-15 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
Vendor Master File
Enhance (Continued)
• Verify vendors against internal database and
check to published lists
• Restrict adding and updating
• Review all adds and changes
• Secure a W-9 or substitute
• Purge and cleanup every year
• Use standard rules for names
• Use USPS and UPU rules for addresses
• Capture phone & fax number
• Involve purchasing for any new vendor who
will be issued a purchase order
P-16 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.
Vendor Master File
Enhance (Continued)
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Lexis Nexis
Bank Account Validation
Diversity
Business Continuity
Scheduled & Ad Hoc Blanket Updates
Vendor Self Service
P-17 CONFIDENTIAL Copyright © 2009 Lavante. All Rights Reserved.