pilgrim’s pride “we’re passionate about our food.”
Post on 19-Dec-2015
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Buyer specifies Xnumber of days towait for Goods or
P.O.D.note: input # of daysand validate againstnumber range - not a
drop down
Invoice'Q'
Blocked
ProcessSelectionScreen
Post GoodsReceipt
Reverse Receipt
Refer to Buyerwith Comments
ProcessSelectionScreen
Refer toRequisitioner
Change PO
Notify ReceiverGoods are Coming
Notify ReceiverProof Of Deliver isComing
Refer to Receiverwith Comments
Authorize A/P toCancel Invoice
Authorize A/P toPay As-Is
Executeinstructionfrom Buyer
Return toBuyer
Header-levelDashboard
Line-item
Line-item
Header
Delay
D
E
B
To Page 2
To Page 2
GRExists?
GR exists forthis PO line
NO GR
A
B
Page 1
Note: Line-itemAuthorizations from variousindividuals are consolidatedback to A/P at the header-level
Page 1
A
To Page 2
C
Send E-Mailto
Vendor E-MailAddress
Cancelled Invoice
suggested fromVendor Master
orinput
Pilgrim’s PridePilgrim’s Pride““We’re Passionate About Our We’re Passionate About Our
Food.”Food.”
About Pilgrim’s Pride
• Pilgrim's Pride is the second-largest poultry company in the United States.
• We process approximately 55 million pounds of chicken and 8.5 million pounds of turkey per week.
• Vertically integrated, Pilgrim’s controls every phase of the production of our products by operating feed mills, hatcheries, grow-out facilities, processing plants and distribution centers.
Accounts Payable
• Centralized Operation – Corporate Office
• Internal Customer Base:
Three Divisions in Two Countries
• Annual Accounts Payable Process Volume:
• 200,000 Purchase Orders Invoices (90%)
• 25,000 Non Purchase Order Invoices (10%)
Purchasing
• Centralized Purchasing Department– Central, East, & Mexico Divisions
• Internal Customer Base– Three Divisions in Two Countries
• Annual Purchasing Volume:– $1 Billion
Process Support Team
• Buy-IT Process Team– Chaired by VP of Purchasing
– Representatives from Purchasing, Accounts Payable, and Information Technology
– Brings together the Purchase-to-Pay Process for Tighter Coordination
– Sets Priorities for Both Process & Technology Issues
Why SAP AP Workflow?
• Manual Invoice Exception Processing– Time Consuming
– Lost Invoices / Duplicate Invoices
– Impossible to Track
– Flexibility for Expansion
• Vendor Relationships– Lost Discounts / Late Payments
AP Workflow Project was Initiated!
AP Workflow Project Goals
• Headcount Reduction– 10 Positions Between AP and Purchasing
• Obtain More Vendor Discounts• Invoice Exception Turnaround
– Average of 30 days to 10 days
• Elimination of Duplicate Invoices– Average of 1200 a month to zero
• Reduce Vendor Hotline Traffic
AP Workflow Solution Evaluation
• Build vs. Buy Workflow – Build: low cost, more time, reduced functionality– Buy: less time, high level of functionality
• SAP vs. Non-SAP Workflow– SAP: central platform, no interfaces, familiar GUI– Non-SAP: more platforms, new GUI, high complexity
• Pre-Packaged vs. Custom Workflow– Pre-Packaged: less time, best practices, supported– Custom: more time, pitfalls, support, scope creep
Selected Pre-packaged SAP Workflow-based solution from Optura
Optura Solution
• Technology Landscape – Single Instance, SAP 4.5b– IXOS Imaging– Optura “Inside-SAP” Workflow Solution
• Solution Scope– Quantity & Price Blocking– Suspension Reasons (tax, freight, matching, vendor
maintenance, etc...)– Non-PO Invoice Approval– AFE Invoice Approval– Duplicate Invoice Processing
ScannerScanner AP ProcessorAP Processor
Issues With Old Process:• Time Consuming / Manual Process
Lost discounts • Poor vendor relations• Late payments
• No Reporting / Tracking • Lost invoices• Uncoordinated appearance
AP Problem AP Problem SolverSolver
Receiver
Buyers, Receivers
Accounting Managers,
Project Managers
Old Manual Process
Buyer specifies Xnumber of days towait for Goods or
P.O.D.note: input # of daysand validate againstnumber range - not a
drop down
Invoice'Q'
Blocked
ProcessSelectionScreen
Post GoodsReceipt
Reverse Receipt
Refer to Buyerwith Comments
ProcessSelectionScreen
Refer toRequisitioner
Change PO
Notify ReceiverGoods are Coming
Notify ReceiverProof Of Deliver isComing
Refer to Receiverwith Comments
Authorize A/P toCancel Invoice
Authorize A/P toPay As-Is
Executeinstructionfrom Buyer
Return toBuyer
Header-levelDashboard
Line-item
Line-item
Header
Delay
D
E
B
To Page 2
To Page 2
GRExists?
GR exists forthis PO line
NO GR
A
B
Page 1
Note: Line-itemAuthorizations from variousindividuals are consolidatedback to A/P at the header-level
Page 1
A
To Page 2
C
Send E-Mailto
Vendor E-MailAddress
Cancelled Invoice
suggested fromVendor Master
orinput
ScannerScanner BuyerBuyer
ReceiverReceiver
Project Project ManagerManager
Accounting Accounting ManagerManager
AP Except AP Except HandlerHandlerIndexerIndexer
New Process:
• No More Cloud Diagram
• Right Person / Right Time
• Entire Process is Monitored
• Reporting is available
• Duplicate Invoice Monitored
AP ProcessorAP Processor
New Workflow Process
Anticipated Benefits
• Headcount Reduction • Increased Efficiency of AP Processing• Happier Vendors
– Less Vendor Hotline Traffic– Better Negotiation Position on Future Contracts– More Discounts Realized
• Tighter Controls– AFE Invoices– Non-PO Invoices
Next Steps
• APFlow Phase II – Supplier Portal – Extend Invoice Exception Workflow to Vendors
– Online Vendor Invoice Status Checking
– Direct Invoice Entry by Vendors
• Timeline: 4th Quarter 2003