07 caso de éxito bpaas: gestión automatizada de pedidos de clientes

Cloud BPM Discovery Seminar - BPaaS Sucess Case - Sales Orders Processing V 01 P 1

proceeditCloud BPM Discovery Seminar

BPaaS Success CaseSales Orders Processing


Abstract

Around 4.500 Sales Orders per

month reviewed, validated and

recorded automatically in the ERP,

for just 2 people (full time

equivalents), with the support of a

BPM Process by combining

OCR/ICR, BPMS, BPM-SOA and

DMS technologies served on

BPaaS modality.


Customer

LEDS-C4

Import-Distribution-Export of led lighting

equipment.

Location: Torà, Lleida, Spain

http://www.leds-c4.com/


Operations

Employees: 200.

Customers: +3.000.

Customers origin: 97 countries.

Sales Orders distribution per countries:

Country % Orders

Spain 49,0 %

France 9,6 %

UK 7,3 %

Germany 5,9 %

Italy 4,9 %

Portugal 4,0 %

Greece 1,2 %

Switzerland 1,2 %

83,1 %

85,4


Sales Orders Input Channels

Channel %

Presential 0,9 %

Phone Call 4,5 %

Fax 15,2 %

email 71,2 %

EDI 6,9 %

Web 0,0 %

Others 1,3 %

Sales Ordersto beAutomated

86,4 % over

5.700

5.000Orders/Month


Problem and Target

Problems: around 5.000 Sales Orders are received

every month, via email and fax, whose validation,

approval and posting to the ERP (X3 from Sage) was

done manually, which is consuming a lot of time of the

Customer Service department staff (23 % of time of

25 people) valid for other tasks of much more added

value.

Target: Reducing the burden of sales staff time by

automating the full processing of Sales Orders

including:

1. OCR/ICR and metadata extraction (head and lines).

2. BPM procedural validation and approval tasks.

3. Automatic registration of the Sales Orders transactions

against the ERP.


Proposed BPM Process

Income, Automated

Verification, Validation,

Approval and Automated

Accounting of Sales

Orders.


Technological Challenges

Document Type: Automatic identification of document type

(3.000+ customers) by morphology.

Header and Foot: Automatic multi-language extraction of

header and foot fields for all document types, including:

Customer Name, VAT ID, Shipping Address, Total Amount,

VAT, Net Amount, Payment Terms, Delivery Time, ...

Sales Order Lines: Automatic extraction of fields of the Sales

Order detail lines: position, item code, item description,

price, discount, ..., treating very different lines formats

variances with models very quickly adjusted without

requiring the creation of formal template for each format.

Cloud/On premises: hybrid installation of applications, data

and documents in-house (ERP of the Customer) and the rest

(OCR, BPMS, BPM and DMS) in a cloud served by proceedit.


Architecture of the Implemented Solution

Formal BPM Process

OCR ERPeMail/Fax

ServerDiscs in

PCs*

• Formalized• Normalized• Automated• With Alerts• Supervised by Exception

• Provide KPIs*• Traceable

System Controls

BPMS Platform

DMS/LDAP

Automated Task

Automated Task

Automated Task

DropBox, Google, …

Personal Task

Personal Task

Personal Task

• Semi-automated Personal Tasks• Made by whom, how and when System Prompted to do

• Where the user wants• Independent of People

• Automated Tasks• Improve Efficiency• Big Savings

DMS

BDD DMS/BPMS

Validators & Approvers


BPM Process Flow Diagram


BPMS Process Flow Diagram

Automatic Validation

Incident Treatment

3 Level Approvals

Error Handling

Automated Accounting


Functionalities

Personal Tasks:

Review OCR/ICR Output.

Level 1 Approval.

Level 2 Approval.

Level 3 Approval.

Revision of Comments.

It’s not a Sales Order.

Order Lines without Cost (Incidents).

Automated Tasks:

Document Capture and Validation.

Creation of the Sales Order in the X3 ERP.

Simulation of the Sales Order in the ERP.

Registration of the Document and Metadata in the DMS.


Main BPM Task Form


Sub-form Details of Sales Order Lines Validation

Data automaticallycaptured by

OCR/ICRError Indicators

Data Obtained form the ERP

Manual decision when lack of data

or data conflict

Analysis of Sales Orders Lines


Most Relevant Functionalities - 1

1. Getting the Sales Order image from the OCR.

2. Pre-allocation of Customer & Delivery Address by

morphology.

3. Automatic extraction of metadata (header, foot and

items lines) from the image of the document.

4. Automatic validation of Customer & Delivery

Address verification against the ERP.

5. Automatic checking of Items, Prices, Discount and

Stock Availability against the ERP.

6. Recovery of Transportation Agency, Transportation

Costs Assigned and Payment Conditions from the

ERP.


Most Relevant Functionalities - 2

7. Assisted manual verification of lack of data or data

discrepancies OCR vs ERP .

8. Up 3 levels of approval, when necessary.

9. Automatic accounting of the Sales Order in the ERP.

10.Personal Tasks for errors handling.

11.Register Sales Order image and metadata in the

DMS.

12.Entry Sales Order Document link in the ERP.

13.Monitoring of KPIs.

14.Personal Tasks for outsourced handling of Incidents

(μBPO).


Actors in the Project

Baelia

OPEX

Process

Control

LEDS-C4

BPM

Factory

GiDoc

OCR

Ultimus

BPMS

Process Knowledge

Base

Sage

ERP X3

Clúster

proceedit

ERP

Implanter


Learning Curve

Days in Operation

% O

CR

Success

R² = 0,8125

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91


BPM Treated Sales Orders Evolution

y = 2.7904x - 112569

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

Num

ber

of

Sale

s O

rders

/ M

onth

Month

Sales Orders Evolution

After BPMBefore BPM

< Equivalent Staff

100 % Dedicated >

< % of Time Spent >

< Number of staff Involved >


Personal Effort Before / After BPM

25 15

23 % 13 %

5,75 1,95

- 66 %% Savings

in Hours


Potential Brut Savings in Personal by Implementing BPM

Savings in Personal

11.400€/Month

5,75 Persons

1,95 Persons

3.000 €/Month/Person

3,80 Persons


Net Savings

Net SavingsBrut Savings

11.400€/Month

BPaaS Cost 2.250

€/Month

Net Savings 9.450

€/Month


ROI

ROI

Brut Savings 11.400

€/Month

BPaaS Cost 2.250

€/Month

30 Days/Month

5,9 Days


Ratios Cost / Savings and Cost / Order

Cost / Saving

11.400€/Month

2.250€/Month

19,7 %

Cost / Order

4.550Order/Month

2.250€/Month

0,49 €/Doc


Ratios Savings / Doc and Net Savings / Doc

Brut Savings / Order

4.450Order/Month

11.400€/Month

2,51 €/Order

Net Savings / Order

4.450Order/Month

9.450€/Month

2,12 €/Order


Status of the BPM Process

In operation since: 19-04-13 (19 months).

Sales Orders processed till now: 73.400.

We have achieved 89 % of the target in

terms of average number of Sales Orders

processed.

Net Cash Flow generated till now:

Net Cash Flow

155.600 €

73.400Orders

2,12 €/Order


Annual Net Cash Flow to Generate

Net Annual Cash Flow

127.200€/Year

60.000Orders

2,12 €/Order

200Employees

636 €/Year/Employee


Intangible Benefits Obtained

Less errors.

Shorter processing cycle.

More homogenous

processing cycle.

KPIs, Monitoring & Tracing.

BPM Demonstration Project.


Lessons Learned

BPMS Platform not relevant for end

user.

Total effort 1.400 hours.

No conflict with users by involving

them form the very beginning.

Major brakes > integration with

ERP.

Success of quick win >>> new

requests.


Possible Process Improvements to Implement

Transfer Sales Order preparation to

agents or customers.

Implement automated notifications and

agents/customer feedbacks.

Mobilize tasks.

Include in the process Sales Orders

received from other channels.

Obtaining additional KPIs.

Implement Sales analytics and

suggested improvement actions.


How to Value the Savings in Hours of Personal

1. By not replacement of:

Retirement: around 5 % / year (depends of

the age structure of the workforce).

Personal leaving by natural rotation: 5 – 25

% / year. (varies a lot sector by sector).

2. By reallocation of redundant personal to

perform tasks with more added value.

3. By reallocation of some staff to an

internal OPEX group for discovering,

testing and training support of internal

users.


Jet of Net Cash Flow for the Customer

During the last 15

minutes LEDS-C4 has

had net savings for:

€ 13,4 equivalent to

(127.200 € /year).


Questions?

Questions?


Contact Information

Jordi Morera, proceedit

Business Development Director

[email protected]

+34 669 437 871

Josep Cos, proceedit

Managing Director

[email protected]

+34 660 193 163

mailto:[email protected]

mailto:[email protected]


Gratitude

Thanks for

your Attention!


Intangible Benefits Obtained

Reduction of errors.

Reduction of low added value personal tasks.

Reduction of the Average Sales Orders processing cycle (from 2

days to 2 hours).

Having more time for handling of exceptions and personalized

treatment of the customers.

Reduce time and costs of photocopying and paper file.

Motivation for cleaning and standardizing ERP entities and

attributes (Customers, Delivery Addresses, Articles, Prices,

Discounts, ...).

Obtaining a platform to implement further improvements in the

process.

Getting on-line automated KPIs: % of Sales Orders processed

automatically, % of correct Sales Orders, processing cycle time,

...

Demonstration of the benefits of deploying BPM Processes.


Lessons Learned - 1

The BPMS platform used is not relevant to the SME client,

especially when processes are served on a Cloud BPaaS mode

processing.

The project lasted 7 months, with 4 months devoted to

OCR/ICR and ERP integration. The dedication from the BPM

Factory of proceedit including process improvements

implemented after the startup was 1.200 hours and the total

effort, including business consultancy and the dedication of the

Customer staff was around 200 hours.

There has been no rejection by users, on the contrary, users are

actively considering and proposing improvements in the process

and proposals for new processes that could be implemented in

the organization. Smooth management of change has been

achieved by involving key users from the beginning of the

project.


Lessons Learned - 2

The major process deployment brakes were:

1. Get focus to the process definition by the key users;

2. Availability of web services to attack the ERP,

3. Communication problems On-premises <> Cloud by VPN;

4. Unannounced changes in the configuration of the ERP, and

5. Fine adjustment of the OCR/ICR.

Tangible savings in staff hours is huge, with two-thirds

reduction, implying a tangible net annual savings of around €

127,200 and estimated additional intangible savings, not less

than € 20,000 per year.

The success of a first BPM Process generates new needs and

opportunities:

1. Improvement in the process itself, and

2. Request for new additional BPM processes to be implemented.


Possible Process Improvements to Implement

Support to the on-line preparation of the Sales Order by the

Customer with suggestions of possible Orders according to the past

history of Orders passed.

Automatic notification to the Customer of the reception of the Sales

Order with Customer survey of reasons to pass the Order.

Automatic interactive Sales Order Confirmation with the possibility

of changes or last minute additions by the Customer.

Support for change in the Sales Order (quantities, prices, discounts,

delivery, transportation, ...).

Mobilization of Personal BPM tasks.

Satisfaction survey over the entire process of ordering and receipt.

Incorporate into the BPM process Sales Orders received by the

other channels.

Obtaining additional KPIs: Sales Order cycle, productivity per

employee, Sales Orders trends per customer, ...

Analysis of changes in customer Sales Orders for possible actions.


New Requested Processes

1. Process for automatically transfer of invoices between

ERPs of group companies (already in operation).

2. Incident Management (in operational pilot phase waiting

comments from customer. Expected to be in operation

Dec 1st 2014).

3. Product creation and preparation of special proposals (in

development, expected to be in operation by Feb 1st

2015).

4. Management of Product Devolutions (expected by 2nd

Quarter 2015).

5. Management of Samples (expected by 3rd Quarter 2015).

6. Process for management Special Prices (expected by 4th

Quarter 2015).

07 caso de éxito bpaas: gestión automatizada de pedidos de clientes

Documents

processing of sales

sales orders distribution

sales orders transactions

sales order lines

sales ordersto beautomated86

burden of sales staff

bpm procedural validation

bpaas modality