Welcome to theInvu User Conference
Real Life Benchmarks: The Digital Transformation of the
Purchasing Process
Plan:Time is money[Lack of] Control is moneyInvoice Automation
and Purchase Requisition to OrderTrusting the machine Change
managementThe Requisition to Order ProcessThe Invoice to Payment
Process
Efficiency excess effortTurnaround time (now a duty to report
for large business)Enable focus on critical thinking and high value
issues CONTROL!
Time is Money:
The Small Business, Enterprise and Employment Act 2015 created a
duty on large businesses to report on their payment
practices.Larger Businesses onlyStart Measuring from AprilReport
every 6 monthsPerformance: % invoices (Count) paid in 30-60 - Over
60Contract terms & more
New - Duty to Report:
Invoice Automation:
To Intro Julie a quick Definition slide?5
Requisition to Order Automation:
Budget View
Coded Lines
Easy &MobileApprovals
Trusting the Machinea process in itself:
350 Staff, 30,000+ Invoices per annumHad no central PO system
(just dept. spreadsheets)Had already purchased ERP POP moduleMore
recently had already successfully implemented Invoice
ProcessingStill wanted a purchase control solution because:Auditor
demandOperational fitness strategic aimDemonstrate VFM an HA
community directive
Adactus Housing Association:
Requisition to Order:
Auto-place:Emailed/Upload PDF ensures the Order presented to
Supplier matches the systemVia Phone/Tablet:Approvals can be done
quicker and easier with mobile interfaces
Purchase Process Metrics:
Days from Request to ApprovalAverage 0.5 Day for ApprovalAverage
0.5 Day to then raise OrderMost Request to Raise within 4 hours
Purchase Process Metrics:
PostEmail(Auto)PhoneFaxOnlineOrder Placedvia
1 LineOrder2 Lines3Majority of Orders are 1 line item
Invoice to Pay:
Slower Receive:Manual save from emails (PDF) orScanned onto
Photocopiers from Departments
Fast Receive:Auto-capture from [email protected]
department scanning
Header NarrativeAnd VAT splits by AP staff
Straight throughprocessing
Invoice Process Metrics:
SameDay1 Day234Mean Days from Receipt of Invoice to Posting =
5Mode Days from Receipt of Invoice to Posting = 1
SameDay1 Day234Time to Approval (where
needed)24%TouchlessInvoices2/3Not receivedBefore Invoiced
Invoice Process Metrics:
24%Touchless: Straight through processing16%Light Touch: Matched
but required (only) Receiving Simple Variation Partial
InvoicesComplex InvoicesConsolidated Invoices60%40%Heavy Touch:
Approval & balancing required
Keep Orders simpleIncreased likelihood of auto-matching with
InvoiceBetter traceability, more 1-1 with InvoicesLess interlock
with other staff/transactionsAutomate the receiving of
InvoicesRequest emailed invoices not paper, Request Invoice per
Order, not consolidated (cause thats for humans)Use a dedicated
email address; [email protected] => Audit
Making room for the real queries (1):
Simple process flow Keep the process as linear as
possibleSimplify the process when you automate dont replicate a
complex processTrust the data & the machine reduce approval
steps
Making room for the real queries (2):
Thank you for listeningwww.invu.net
