how to find your real project roi session 5. slide 2 ©2010 financial operations networks llc about...
TRANSCRIPT
Slide 2
©2010 Financial Operations Networks LLC
About the Speaker
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.
Wendy Cambarare, APMAccounts Payable ManagerMoen Incorporated
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©2010 Financial Operations Networks LLC
An Accounts Payable Story:Moen & OnBase
Wendy CambarareAccounts 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
• Manufacturer of faucets, sinks and accessories for the bath, kitchen, outdoor and more
• Headquarters in Cleveland, Ohio
• Products are sold internationally
Moen Incorporated
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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― 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
• 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
Average process time per invoice 7 minutes @ cost of $1.90/invoice
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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
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
– 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
• 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
Integration (Cont’d.)
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©2010 Financial Operations Networks LLC
• 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
Integration (Cont’d.)
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©2010 Financial Operations Networks LLC
• 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
– Why isn’t it processed?– Where is it?– Who has it?– How long has it been there?
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
• 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
Results (Cont’d.)
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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
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Thank You!
The Accounts Payable Network2100 RiverEdge Parkway, Suite 380Atlanta, GA 30328Contact: [email protected] 770-984-1184www.TAPN.com
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