winshuttle & l’oréal uk & ireland overview of … & l’oréal uk & ireland 1...

Overview of development at L’Oréal

Winshuttle & L’Oréal UK & Ireland

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Mike Thomas

Customer Project Co-ordinator - L’Oréal UK Ltd 22nd November 2011

Copyright L’Oreal UK & Ireland

Contents

• Introduction to L’Oréal UK & Ireland

• Who am I? – My role within the business

• Challenges experienced with SAP

• How Winshuttle has helped to overcome these challenges

• Example 1 – Auto Cash Allocation

• Example 2 – Customer Master Data Creation

• Future Areas for Development

• Summary

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Introduction to L’Oréal UK & Ireland

• Founded in Paris in 1909 – recently celebrated it’s centenary

• 1st worldwide cosmetics group

• 23 International brands

• 64,600 employees in 130 countries

• Present in the UK since 1932

• 4 divisions supplying cosmetics, haircare and beauty products to all areas of

the health and beauty market

– Consumer Products Supplying cosmetics, haircare and skincare products to

supermarkets & chemists

– Professional Products Supplying colourants and styling products to hair salons

– Luxury Products Supplying fragrances to supermarkets & chemists

– Active Cosmetics Supplying dermatological products to chemists

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Introduction to L’Oréal UK & Ireland

• Mike Thomas: Customer Project Co-ordinator

Professional Products Division

– BSc (Hons) in Mathematics

– AICM (cert) – certificate in Credit Management

– 11 years experience with L’Oréal

• Cashier

• Order processing

• 3 years Credit Control

• 6 years SAP key user for customer services and credit control (SD & AR modules)

– Responsibilities include

• Testing and training new developments on SAP

• Training SAP to new starters

• Error investigation and resolution

• Improving processes

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Challenges experienced with SAP

• Large number of customers – c 9,000 salon accounts

• Salons frequently change hands – regularly opening new accounts

• Large volume of orders / invoices – small values.

• Time consuming tasks:

– Order entry

– Account creation

– Posting payments to accounts

– Allocation of payments

• Accuracy of data entry

– Large number of fields of data required in some transactions, for example: • XD01 – account creation

• F-22 – journal entry

– Manual transfer of data from order forms to SAP

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How Winshuttle has helped

• Using Excel based forms, errors in manual processing can be eliminated

• Repetitive tasks can be automated leading to time savings

• Long winded tasks can be automated leading to both time savings and error

reduction

• Winshuttle can be implemented without IT development

– Easy to use

– Does not require technical knowledge of SAP

– Only allows a user to access the transactions to which they already have authorisation

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Example 1: Auto Cash Allocation

• c 200 payments per day

• To enter each payment manually in SAP, transaction F-22, requires a minimum of 11 fields of information to be input for each payment

• Only 2 of these fields are different for each payment – Customer Account Number

– Value of Payment

• Once the cash has been posted, an administrator then has to allocate the payment to the individual invoices that are being paid

• Using a Winshuttle script based on transaction F-26, these payments can be posted automatically and if SAP can find matching open items on the customer’s sales ledger, it will automatically allocate these items to the payment and clear them off the sales ledger

• Not all payments can be automatically allocated, so a second Winshuttle script is used to post the un-allocatable payments to the sales ledger as uncleared documents

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• Transaction F-22:

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Formulas in Excel to create sequential reference

number and copy all other static data

Only unique information required is

Customer Account Number and Amount

Macro linked to button which automatically opens

TRANSACTION and runs the correct script


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• Time savings: approximately 2 hours per day

½ hour for the cashier

1½ hours for the credit controller

• Cost savings: 1 credit controller on £10 per hour

£20 per day

£100 per week

£5,200 per year

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Example 2: Customer Master Creation

• c 7 new accounts created per day

• To create a new account manually in SAP requires in excess of 100 fields of

data

• A number of these fields are either static, eg payment terms; reconcilliation

account, or dependant on geographic location, eg sales district based on

postcode.

• These fields can therefore be calculated in an excel spreadsheet, thus

reducing errors

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• Within the L’Oréal Professional Products division, the sales reps can capture

prospect accounts’ data and transmit this to SAP

• This creates a prospect account in SAP

• Once the account has been authorised by the credit manager, this data is

converted to a trading account.

• Credit master data then has to be added; if the account is to trade on

multiple sales areas, then further sales area data has to be created.

• For each sales area, the account has to be attached to that sales area’s

customer hierarchy

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XD02

to add mandatory data to the prospect account

ZCUST

to convert to a trading

account

XD02

to complete remaining data not available in the prospect

account

FD32

to create the credit

data

XD01

to create additional sales areas

VDH1N

to add to the

customer hierarchy

The pre-Winshuttle process for L’Oréal involved the following SAP

transactions:

The Whole process used to take on average 15 minutes per account


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• The new Winshuttle based process involves 5 scripts

• The first of these extracts the prospect account data from SAP and

downloads it to an Excel spreadsheet

• This data can then be checked and used to calculate the required information

for other fields in SAP, and any additional data added.

• The Excel file also contains formulas that can validate the information added

to the spreadsheet

• Once all data is maintained on the spreadsheet, an Excel macro is run which

can check that all required data is maintained before automatically opening

the first of the remaining Winshuttle scripts

• Each subsequent script is linked to the previous script and automatically runs

once the previous script has completed.

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Step 1: Fill in prospect account no. & new

trading account no.

Step 2: Click on “Extract Prospect

Account Details” button – linked macro

automatically opens TRANSACTION and

runs the required script


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Step 8: Click on “Create New Account

from Prospect” button – linked macro

automatically opens TRANSACTION and

runs first of 4 scripts; each subsequent

script is linked to the previous one in a

chain and all scripts run automatically

The new Winshuttle process for L’Oréal involves the following scripts:

Compared with the pre-Winshuttle process:

XD01

Create new account & link to customer

hierarchy

XD06

Flag prospect account for

deletion

FD32

Add credit master data

XD01

Create additional

sales areas & link to

hierarchy


XD02

to add mandatory data to the prospect account

ZCUST

to convert to a trading

account

XD02

to complete remaining data not available in the prospect

account

FD32

to create the credit

data

XD01

to create additional sales areas

VDH1N

to add to the

customer hierarchy

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• Time savings: approximately 1¾ hours per day

• Cost savings: 1 masterdata administrator on £10 per hour

£17.50 per day

£87.50 per week

£4,550 per year

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Other uses & future development

Current other uses:

• Order creation

• Mass resaving of deliveries after delivery validation errors

• Extraction of data for ad hoc reports that cannot be obtained in SAP

• Creation of rebate agreements

Areas for future development:

• Mass order amendment

• Creation of returns orders, credit and debit notes

• Creation of pricing conditions

• Creation of financial journals

• Creation of product master data

• Various warehouse & delivery related processes

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Summary

• Winshuttle is easy to use

• No IT development required

• Preserves SAP security

• Quick and straightforward recording and mapping of scripts

• Significant time and cost savings for some basic processes

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The End

Any Questions?

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