Major Multinational Distributor Gains Unprecedented ... ... Major Multinational Distributor Gains

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  • Major Multinational Distributor Gains Unprecedented Visibility of Their Global Payroll

    Turning Global Payroll Results into Actionable

    Labor Expense Data

    Using dashboards and Workday’s Cloud

    Connect For Third-Party Payroll, DistributionNOW

    (DNOW), has turned payroll results from 14

    countries into easily understandable labor

    expense data used to make informed

    investment decisions. DNOW has reached the

    optimum level of Human Capital Management

    (HCM) and payroll integration with Workday

    Global Payroll Cloud Partner, SafeGuard World

    International.

    DistributionNOW (DNOW) is one of the largest distributors to the energy and industrial sectors spanning a rich history of over 150 years. DNOW provides a comprehensive line of products for the upstream, midstream,

    downstream and industrial market segments including: pipe, valves and valve automation, fittings, mill and industrial supplies, tools, safety products, and artificial lift systems to the oilwell and pipeline industry. DNOW is also recognized as a leading supply chain solutions provider of value-added services including supply chain management, project management, and e-commerce solutions.

    DNOW’s roots are derived from two oilwell industry giants--National Oilwell and Varco International. In 2005, these two companies merged to create National Oilwell Varco (NOV). In late 2013, NOV decided to divest its distribution services creating DistributionNOW. As a result, DNOW had to determine how to pay all of its employees in 24 countries spread across over 300 processing and plant locations.

    NOV, a global company with over 60,000 employees worldwide uses an on-premise payroll for its U.S. and Canadian employees and a mix of other solutions around the world. Seeking a more streamlined approach and improved access to data, the newly independent DNOW first selected Workday Human Capital Management (HCM) as its global HCM and Workday Payroll for U.S. and Canada as its payroll solution for those countries. Next, DNOW quickly needed to ensure its international distribution employees could get paid properly and on time.

    DNOW distribution center in Edmonton, Alberta, Canada

  • Workday and SafeGuard World International SafeGuard World International, along with DayNine, a leading Workday implementation partner, were selected after an accelerated, three week evaluation. SafeGuard World’s contract stipulated that the initial phase of the countries outside the U.S. and Canada, constituting approximately 600 employees, had to be fully operational within three months. This had to work alongside DNOW’s deployment of Workday HCM and Workday Payroll for over 5,000 employees in the U.S. Additionally, the international based employees had to be integrated within the Workday HCM system of record.

    SafeGuard World was selected because of its longstanding relationship with Workday as a Global Payroll Cloud Partner and its success with other Workday HCM clients. As a Global Payroll Cloud partner, SafeGuard World offered Workday certified pre-built connectors for each country in which DNOW operates. This meant that DNOW could take advantage of Workday’s seamless and proven bi-directional integration capabilities. Payroll data could now move from Workday HCM to the international payrolls and back.

    How the Integrated Solution Works Workday’s HCM application is the single, trusted source for DNOW’s HR data, including organization codes, general ledger codes, positions, and employee demographic data. By leveraging Workday’s Cloud Connect for Third- Party Payroll, data is seamlessly passed to SafeGuard World’s proprietary software, Unity®, which is used to manage the data flow between DNOW, SafeGuard World’s global shared service centers and SafeGuard World’s in-country payroll processors. SafeGuard World has over 100 Workday- certified, pre-built, country-specific, connectors. These connectors lower the cost and reduce the burden of interfacing Workday’s HCM to Unity®. The complex work of understanding in-country data requirements is undertaken and maintained by Workday and SafeGuard World, extending the value of DNOW’s investment in its global Workday HCM.

    Moreover, some payroll data necessary to process payroll in different countries is not typically maintained in a global HCM. These include variable pay data such as pension and stock options, as well as supporting documents including proof of employment eligibility, employment contracts and proof of absences. SafeGuard World leverages its own Unity® solution to receive data directly from DNOW – regardless if that data is globally, regionally or locally sourced.

    SafeGuard World, which now serves as DNOW’s centralized global payroll manager, oversees all aspects of the local payroll processes. SafeGuard World ensures all the inputs for each country payroll have been received and validated for completeness, then seamlessly dispatches data to the relevant payroll in-country experts. These country experts compute the gross-to-net calculations in accordance with all local statutory requirements and return the detailed gross-to-net data to SafeGuard World. Data is automatically aggregated into Unity® for detailed payroll validation, reporting and analytics before being submitted to DNOW for final approval. SafeGuard World then generates the requisite bank and general ledger files, along with the final payroll reports, tax filings and employee pay slips.

    GLOBAL PAYROLL CLOUD

    PARTNER

    The complex work of understanding in-country

    data requirements is undertaken and maintained by Workday and SafeGuard World, extending the value of DNOW’s investment in its

    global Workday HCM.

  • Challenges DNOW had to address some fundamental operational questions before fully deploying this solution such as:

    • Where is the payroll data housed? • What would it take to access and retrieve the data? • How must the payroll calculations be done? • What is the best way to integrate the data with Workday HCM? • Who would be supporting the operations internally?

    Additionally, DNOW management wanted access to underlying payroll data to support strategic decision-making, something previously unavailable.

    However, the expertise to assist with these questions resided in NOV, and was no longer available to DNOW. This was a big challenge for both DNOW and SafeGuard World. There was no longer any centralized support available to handle the payroll issues that arose across the various operating countries and jurisdictions.

    Consistent with DNOW’s recognized “Do it NOW” mentality, the challenge was to have all payroll distribution processes live within three months to pay the employees in the first set of countries - without any interruption.

    Approach – Experience Pays First, DNOW and SafeGuard World had to tackle those fundamental questions. In some countries, no one person had the experience to gather the necessary requirements within SafeGuard World’s project methodology. SafeGuard World responded by structuring a global team - a combination of global solution designers and regionally based payroll experts aligned with DNOW’s needs.

    SafeGuard World deployed its team to conduct onsite discovery meetings to rapidly gather requirements for the new solution by reviewing existing payrolls, end-to-end processes, resources and constraints. Because future global reporting and data analytics were an extremely important business outcome, SafeGuard World’s global solution designers worked to harmonize the data across all the countries as granularly as possible, especially given many country variations.

    Simultaneously, the DayNine integration team worked on the Workday HCM deployment. To meet the deployment time lines and ensure that employees were paid, clear and constant communication between all parties was crucial. This deployment quickly became an orchestrated dance with all parties ensuring that the downstream payroll processes were synchronized so that accurate and timely payment of employees would not be jeopardized.

    The challenge was to have all payroll distribution processes live within

    three months to pay the employees in the first set of countries - without any

    interruption.

    SafeGuard World responded by structuring a global

    team - a combination of global solution designers

    and regionally-based payroll experts aligned with

    DNOW’s needs.

  • SAFEGUARDWORLD.COM

    US +1 (737) 704 2200 | UK +44 (0) 1270 758020 COPYRIGHT © 2015 SafeGuard World International. All Rights Reserved. Unity® is a registered trademark of SafeGuard World International. Workday and the Workday Logo are registered trademarks of Workday, Inc.

    09/15

    The Results The new payroll deployment was a resounding success, the proof being that there was no interruption, no missed payroll, no missed filings, no pushback or complaints. Essentially, there were no problems.

    Wave one, covering seven of fourteen countries, sped through a two month payroll implementation, going into “live” payroll production in the third month. The Workday integration followed the next month after integration testing was completed – a timeframe almost unheard of given the complexity involved. The next payroll waves mirrored a similar path.

    What did DNOW gain from the seemingly astonishingly quick implementation approach? The overall benefits achieved were quite significant and justified