Transcript How to Find Your Real Project ROI

How to Find Your Real Project ROI
Session 5
About the Speaker
Wendy Cambarare, APM
Accounts Payable Manager
Moen Incorporated
Wendy is the Accounts Payable Manager and Purchasing Card Administrator
for Moen Incorporated. In her current position, which she has held for 19 years,
Wendy oversees the payment of more than 80,000 invoices annually, totaling
more than $550m! During her 35 years at Moen she has held a variety of positions
including customer service and cost accounting. She was on the SAP
implementation team in 2000 and continues as a SAP power user. She also led
the effort that successfully consolidated Accounts Payable in 2004. Wendy holds
a degree in Accounting and is certified as an Accredited Payables Manager.
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©2010 Financial Operations Networks LLC
An Accounts Payable Story:
Moen & OnBase
Wendy Cambarare
Accounts Payable Manager, Moen Incorporated
Rachel Gilmore
Marketing Program Manager, Hyland Software
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©2010 Financial Operations Networks LLC
About OnBase
Hyland Software:
•Software technology firm
established in 1991
•Privately-held
•850+ Employees
•OnBase Enterprise Content
Management (ECM) solution
•More than 9,000 customers
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©2010 Financial Operations Networks LLC
About Moen
Moen Incorporated
• Manufacturer of
faucets, sinks and
accessories for the
bath, kitchen,
outdoor and more
• Headquarters in
Cleveland, Ohio
• Products are
sold internationally
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©2010 Financial Operations Networks LLC
Moen Brands
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©2010 Financial Operations Networks LLC
Moen and a Document
Management Solution
• Driven by I.T. in 2003
– Using Documentum for Customer Service
• Documentum was purchased and our implementation team
had been terminated
• Required dedicated in-house support
• In order to acquire additional functionality, it would require a
significant additional capital investment
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©2010 Financial Operations Networks LLC
Moen and a Document
Management Solution (Cont’d.)
• Other scanning software
― Only SAP compatible
• I.T. wanted ability to interface with systems outside of SAP
― Based on legacy technology – no open system interface
• More expensive than Documentum
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©2010 Financial Operations Networks LLC
Why Accounts Payable?
• Document management solution project manager
was the Director of Financial, HR & Business
Reporting. Business initiative was to consolidate
A/P functions from 3 locations to 1.
• Collaboration between project manager and
Corporate Controller brought about Moen’s
decision to make A/P the OnBase guinea pig.
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©2010 Financial Operations Networks LLC
Why OnBase?
• Simple integration with Microsoft products
• Technology & approach to support applications
more user friendly
• SAP screens tie to OnBase for ease of search
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Continually enhancing
WEB-based access
Imaging not a Moen competency
Instead of $5K SAP licenses for each user, 6 licenses
for imaging and indexing and a concurrent license that
supports 1,000 users
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©2010 Financial Operations Networks LLC
Business Case for Solution
Average process time per invoice 7 minutes @ cost
of $1.90/invoice
• 350 problem invoices/month – rework cost $15
(per A/P Institute)
• Lost discounts – $1,600/month
• Retrieval & filing – 12 hours/month x 6 associates
• Inability to process invoices from other
facilities/countries without receipt of paper copies
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©2010 Financial Operations Networks LLC
IT’S ALWAYS YOUR FAULT!
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©2010 Financial Operations Networks LLC
• Potential Monthly Savings
― $8,020 per month
• Return On Investment (ROI)
― Cost of capital/potential monthly savings
• 14.5 months
• At 80% of productivity – 18 months
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©2010 Financial Operations Networks LLC
Before OnBase
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©2010 Financial Operations Networks LLC
Moen’s Accounts
Payable Department
• Processing approximately 82K invoices/year
• 8 associates
• 3 locations – 1 in Ohio and 2 in North Carolina
• Invoices distributed by the last 2 digits of the
purchase order number
• Piles of invoices – hope the supplier doesn’t call
• Keyed, stamped and filed
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©2010 Financial Operations Networks LLC
Problem Invoices
• Make a copy & attach to the brightest paper
we could find
• Send out for resolution
• Attempted tracking using Excel
• Average return time 20 days
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©2010 Financial Operations Networks LLC
Implementation
• December 2003 – Hyland consultant @ Moen
― Initially had resistance from A/P associates – concern
about not taking their needs into account & difficulty
of use
• Headquarter’s A/P staff spent ½ day with consultant outlining
current practices & future wants
• January 2004 – Proposed plan
― Reviewed proposed implementation plan and presented
documentation to A/P
• March 2004 – Roll out
― Sent out documentation to users outside of A/P in advance
• End users concern – retrieval of information
― Consultant stayed with A/P on first day
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©2010 Financial Operations Networks LLC
Integration
• Scanning format
― Created multiple scan queues & queues within
those queues
• Standard Invoices
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Standard
Foreign
ACH
Check Request
Utilities
Back Files
Vendor Master Adds & changes
Journal Vouchers
Wires – payment documentation
― All rolls into one scan queue for document retrieval
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©2010 Financial Operations Networks LLC
Integration (Cont’d.)
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©2010 Financial Operations Networks LLC
Integration (Cont’d.)
• Determine what fields you want to have as
search options - keywords
• Scanning opportunities
― Within the scanning queues, configuration allows
equitable distribution of workload
• Queues can be distributed based on percentage or specific
queue can be directed to one associate or multiple associates
― Manager or other designated personnel can view what
is in each queue @ any time and workload can be
redistributed as needed as well as a history of each
specific document
― Invoice backlog can be determined immediately
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©2010 Financial Operations Networks LLC
Integration (Cont’d.)
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©2010 Financial Operations Networks LLC
Integration (Cont’d.)
• Automated indexing
― SAP input copied directly into OnBase
• Eliminates duplicate data entry
• Dual screens
• Created dollar value double-check
• SAP/OnBase
― Allows users outside of A/P to access the document
image through the web directly from the vendor
history screen in SAP without going to an OnBase link
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©2010 Financial Operations Networks LLC
Integration (Cont’d.)
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©2010 Financial Operations Networks LLC
Integration (Cont’d.)
• Workflow
― Created E-form to replicate paper resolution form
• Requires partial indexing to locate document prior
to processing
• Addresses based on email address within the company
– Any location with a moen.com extension
• Expiration date reminders
• Allows for notes from A/P and also from the recipient
• Excellent tracking mechanism & controls
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–
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Why isn’t it processed?
Where is it?
Who has it?
How long has it been there?
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©2010 Financial Operations Networks LLC
Integration (Cont’d.)
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©2010 Financial Operations Networks LLC
Results
• Process improvements
― Reduced average month-end backlog from 1,400
invoices in 2003 to 175 currently
― Time savings – no digging & no filing!
― Paper documents are destroyed after 3 weeks
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©2010 Financial Operations Networks LLC
Results (Cont’d.)
• Canada and Mexico facilities have
implemented OnBase
― Their data is uploaded nightly to our server
― The invoices for Moen Mexico are directed to queues
@ Moen HQ and are processed
• Visibility
― 300+ users access through SAP or web
― Problems are partially indexed
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©2010 Financial Operations Networks LLC
Departments That
Use OnBase
• Accounts Payable
• Accounts Receivable
• Human Resources
• Payroll
• Customer Service
• Consumer Services
• Transportation
• Distribution Centers
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©2010 Financial Operations Networks LLC
2010 and beyond
• Upgrade to most current OnBase version
• Integration of emailed invoices directly to
OnBase with a dedicated server
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©2010 Financial Operations Networks LLC
Questions
To ask a question, please press *1
on your phone or submit your question
using the chat function within the
Webinar interface.
If you have further questions,
please e-mail them to
[email protected]
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©2010 Financial Operations Networks LLC
Thank You!
For further information on this topic, contact
The Accounts Payable Network
2100 RiverEdge Parkway, Suite 380
Atlanta, GA 30328
Contact: [email protected]
866-827-6389
770-984-1184
www.TAPN.com