What to Consider When Automating for the First Time€¦ · What to Consider When Automating for the First Time Judy Bicking. PROPRIETARY AND CONFIDENTIAL PAGE 2 ... - Is automation

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May 19-21, 2019 | Walt Disney World Resort®, FL

What to Consider When Automating

for the First Time

Judy Bicking

PROPRIETARY AND CONFIDENTIAL PAGE 2Slide 2

P2P & O2C Process Consultant & Certification Author/Instructor

a 27-year veteran of Johnson & Johnson , Global AP/P2P Director of Financial Business Services

Owner of Nautical Retail Store

Chair for SKD’s Financial Committee

Judy Bicking

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Learning Objectives

May 19-21, 2019 | Walt Disney World® Resort, FL

- Where to start ~ ~ ~ Do I need a project plan?- How to get up-to-speed- Is automation the right answer- Engagement of the team- What to automate- Choosing the right automation - How to build the ROI- How to get approval/budget- Building a successful strategy

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Where to start?

, 2019 | Walt Disney World Resort®, FL May 19-21, 2019 | Walt Disney World® Resort, FL

- Don’t just jump in - Don’t assume

- #1 Lay out a business plan then a project plan:- Executive Summary:- Where are you today- Where do you want to go

- Clear vision of what the end state should look like- Include a Change Management Plan

- #2 figure out how to get there

Business PlanSba.gov

- “A good business plan guides you through each stage

- Guides you through “ managing your business”

- “You’ll use your business plan as a roadmap”

- “Can help you get funding”

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IS AP really the issue?- AP takes the blame for the entire P2P

• Rarely is the reason for errors and late payments AP

- AP work is:• Mundane• Repetitive• Expensive• Laden with errors• Laden with duplicate invoices• Effects supplier relations• Touches every department • Effects closing and the bottom-line

Perception


• Let’s Deal with AP’s Perception:

–Drowning in paper

– Inefficient process

–Long process time

–Costly – overhead

–Complaints about past due invoices

–AP is Out of Control: “need a copy”

–Drain on cash (near or after due date)

• Lacks forecasting of spend

Reality:

- AP is not in control

- AP can not :• Delivery what the customer wants without their cooperation• Meet AP goals on their own• Approve the invoice• Find the invoice

Under Pressure:- To reduce cost and- Handle more volume- To be compliant- Prevent fraud

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How to get up-to-speed


You’re in the right place !!!!• Conference:

• Attend Sessions• Gather business cards

• Chat sessions• Benchmark [ now and later ]• Visit the vendors• Consider getting “Certified” P2P

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Engagement of the team: Upfront


• Your Role: - Lead the kick-off meeting- Provide a way for members to work as a team- Coach / Teach/ Mentor the Team / Guidance / Support- Clear Scope / Expected results / Project Goals- Trust / Empower / Engage- Keep the team Focused

• Project Manager:- Strong leader (not a manager)- Reliable point person to monitor

Progress against timeline

• Educate all members from all phases of P2P (T2R)• P2P Certification

• Project Management

Include your biggest complainer !!

– Top Suppliers (PO/NonPO)

– Requisitioners / Approvers

– Internal Audit

– AP Staff

– Technical Support

– Tax Department

– Procurement & Receiving

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Is automation the right answer


1st Map your current process: AP and from thought of need T2FSYou won’t select the right automation if you: assume or from the noise.

• Let ‘them’ discover the “real issues” and the “right solution”

2nd Get the metricsDecide if you are going after volume, preferred suppliers, or dollars

Need an example !!!

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Low dollar

What to automate


• Will be different for each of you• Based on Facts not noise: • Use your metrics to guide the team:

• 80% of blocked invoices is “Lack of Receipt”

High dollar

Low invoice

volume

High invoice volume

Metric’s keep:

• Team focused

• On REAL ISSUES

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What to automate


• Types of items you could find:• Invoice NOT send directly to AP• How invoices are received: Post / Fax / Inter-office / email / EDI / ERS• No visibility of invoices once received until entered in ERP• PO [inv and MRO] vs NonPO vs Maverick Spend• Dollars under $1K• AP Cycle Time• Types and numbers of inquiries• Blocked invoices• Duplicate Payments• Invoice lacking PO # and / or Invoice number• Invoice misfiled• Hot checks

How many times a

company purchased the wrong

automation

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Choosing the right automation


Seven Vital Criteria

1. Ease of use:

a. Intuitive (app)

b. Minimal training

2. Swift deployment

a. Supplier can meet requirements, time

3. Scalability (w/o customization)

a. Handle future volumes

4. ERP integration

5. Reporting tools: live

6. Support: internal & external

7. Track record / Years in Business / Financials VALIDATE Information

The Supplier

1. Demonstrated with ‘your’ documents

2. Testimonials from current customers

3. Support before, during and after the purchase

4. Integrates with your ERP

5. Visibility / Traceability / History

6. What are user choices vs code changes

Project Team

1. Have a dedicated work space

2. Work Lab

3. Create scripts from real data / forms

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Choosing the Right Automation


• What type/format of automation• Out-of-box• Build your own• Customize• SaaS (rent)

• Type of rent? By transaction?

• Consider learning curve:• Intuitive• App style

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Choosing the Right Automation


• Choose team to engage suppliers with AP Lead- Project Manager / IT Support Lead / Procurement Lead / Sponsor(s)

• RFP: - Build from Teams discovery- Send to Suppliers (exp: 10)- Rate each response

• RFQ:- Sent to top three (3)- Rate each response

- Contract

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• Realistic ‘scope’• Time & Cost savings

• What does it cost now (ABC)• What does automation

• Eliminate• Shorten cycle timeframe• Add to the process

• Automation Benefits:• Shorter cycle times:

• Discounts taken • Timely, accurate Financial Statements

• Imaging: eliminates cabinets, accessories, suppliers, time to file, pull, refile, real estate, time looking for misfiled doc’s, etc.

• Reduction of Fraud and ability of meet Laws and Reg’s: Compliance

How to build the ROI


A Common Mistake

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How to get approval/budget


• WIIFT = C-Suites top five• Reduce Costs• More Compliant• Increase bottom-line

• Learn to be a “sales” person• Time gained from efficiencies:

• Implement proven best practices:• Dynamic Discounts• Spend Management• Cash Management

• P2P process changes: tie to Compliance [OFAC}• Support: They will not override process • Control over spend [commodity by commodity]

Still works today

• WIIFY: For you and your staff:• Change AP perception• Gain Professional status• Raises / promotions

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Building a successful strategy


Internal• Keep your sponsor up-to-date

- Remove roadblocks• Will you build, purchase or rent?• Where will the data be kept? On-site, The cloud• Do you have global requirements?

- Currencies? Languages? Laws? • Teach the team how to test: to break it• Expect and build in tweaks, updates, improvements• Policy and Procedures will need to be written• Job Descriptions may need to be updated/created• Who, where and how the automation will be rolled out.• How do you store these documents? How will they be stored?• Do you keep old process or transfer to new system• How do you distribute documents? How will they be distributed?• Design for expantion

Supplier:• How often do they update? • How many versions do they support?• Are updates created from a User Group?• Is Customer Support available:

- 24/7, 365 days• How often do User Groups meet?• Can you attend? (timing/location)

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You’ve earned bragging rights !


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Sorry ! You’re not done yet.


(1) Re-do metrics (2) Pick the next project 80/20 will have been changed by this project.

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Q&A

Contact Information (include Name, Email, Phone)


orIOFM BoothJudy Bicking

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What to Consider When Automating for the First Time€¦ · What to Consider When Automating for the First Time Judy Bicking. PROPRIETARY AND CONFIDENTIAL PAGE 2 ... - Is automation