© 2013 Oldemark LLC
AP WorkflowStephanie ShawDirector, Enterprise Solutions
Bill BehenGrant Thornton LLP
• About The Wendy’s Company• About Grant Thornton• Oracle Footprint• Evolution of the AP Workflow Business Case• Grant Thornton Partnership• Grant Thornton Process and Findings• Current Initiatives
Agenda
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• Founded in 1969 by Dave Thomas in Columbus, Ohio• Headquarters: Dublin, Ohio• Third-largest quick-service hamburger company in the world
• More than 6,500 franchise and Company-operated restaurants in the United States and 28 countries and U.S. territories worldwide.
• About 5,500 locations are franchised, 1,000 company-owned• 2013 Company Revenue: $2.5 billion• 2013 Ave. Annual Sales per US Company restaurant: $1.51 million
The Wendy’s Company
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Grant Thornton LLP
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Grant Thornton International• Revenues of $4.2B• 600 offices worldwide• Nearly 35,000 employees• More than 2,800 partners
To be the leading audit, tax and advisory firm, serving dynamic organizations in our chosen markets.
V I S I O N
Grant Thornton LLP• Revenues of $1.2B • 54 offices nationwide• More than 6,000 employees• More than 500 partners
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Oracle FootprintOracle E-Business Suite (EBS) R12.1.3• Accounts Payables (AP)• Accounts Receivables (AR)• General Ledger (GL)• Fixed Assets (FA)• Property Manager (PN)• Purchasing (PO)• Order Management (OM)• iExpense (OIE)• Inventory (INV)• System Administration• WEBADI
• Workflow Administration• Projects (PA)• Service Contracts (OKS)• Core HR (HCM)• Compensation Workbench (CWB)• Incentive Compensation (OIC)• Oracle Advanced Benefits (OAB)• Oracle Time and Labor (OTL)• Payroll (PAY)• Employee Self Service (ESS)
Oracle Integrated Solutions• Taleo Recruiting• Thomson Reuters ONESOURCE Indirect Tax• Oracle Transportation Manager (OTM) • Cadec
• Oracle WebCenter• Hyperion Planning• Hyperion Enterprise
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• Workplace Digitization
• Reduce Carbon Footprint
• Minimize Restaurant Management Focus on Administrative Tasks
Why
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• Shared Services Model
• Oracle WebCenter Purchase
• Company Transition
Once Upon a Time
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• 2014 Project Restarted
• Gaps Identified
• Disparate business processes
• Lack of data governance
• Oracle EBS deferred maintenance
• Reflection
Fire! Ready! Aim?
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Process Maturity Model
Adapted from the Capability Maturity Model Integration framework developed by Carnegie Mellon University
Proc
ess/
Syst
ems
Evo
lutio
n
Level 5“Optimized”
(World Class)Process is source of competitive dvantage
• Uniform, well-documented process design• Optimized best practices and rigorous performance measurement and process
improvement methodoligies in place• Process risk strategy implemented and managed; automated controls• Knowledge accumulated and shared• Fully integrated work-flow enabled systems & data integration
Level 4“Defined”
(Scaleable)Policies, process and standards defined and institutionalized
• Uniform, well-documented processes; limited performance management focus• Best practice capabilities generally incorporated• Process is generally scalable; minimal dependency upon institutional knowledge• Combination of best-of-breed and integrated technology solutions; limited cross-
application data integratoin• Some automated controls; generally enforced
Process Maturity Continuum Description Key Attributes
Level 3“Repeatable”
(Intuitive)Process repeatable, but dependent o individuals
• Process is generally understood, may not be fully documented• Execution is dependent upon assignment of quality people and “institutional
knowledge”; limited scalability• Select system usage – standard extracts, imports, etc may be developed, but executed
manually; limited data integration• Primarily manual contorls; generally aduitable
Level 2“Initial”
(Ad Hoc/Chaotic)Dependent on heroics, institutional capability lacking
• Undefined – process cannot be consistently repeated• Relies on initiative & “Just do it” mentality of key people• Heavy use of Excel, Access, etc.; manual extracts from core systems• No data integration• Manual controls; limited enforcement & audit ability
Level 1“Incomplete”
(Non-Existent)Complete lack of any recognizable processes
• No definable process exists – function performed differently each time• Heavily manual / paper-based• Automation developed “on the fly”• Limited to no auditable contorls
Alignment to Strategic Objectives
Risk of Failure
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Current vs. Future State Vision
Supplier Setup and Maintenance
Item Setup & Maintenance
Invoice Entry/Creation
Invoice Approval
Process Payment
Reconcile Payment
Current State
Proposed Future
Level 1 Level 2 Level 3 Level 4 Level 5AP Business Process
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What We Learned
Available ERP Functionality is Under Utilized
Invoice Approval Process is Paper Based
Unable to generate/provide spend analysis reporting
Limited Early Payment Discount Terms Currently Setup
Invoice Submission is Highly Decentralized; Requesters May Hold Onto Invoices for Over 30 Days
Item Master has been Neglected Over Time
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Root Cause
30% Poor Process Definition, Execution, or Supporting Organizational Structure
40% Not Fully Leveraging the Existing ERP Modules
30% Lack of Enabling Systems/ERP Modules
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Benchmarking Utilizing APQC
Key Activities• Complete Rapid
Assessment Data Collection Process
• Submit to APQC
Data Collection
Analysis Results Review
Key Activities• APQC/GT prepares results• Additional follow-up based
upon anomalies in data set• Provide scorecard results
to client • 25, Median, and 75
percentile results within industry
Key Activities• Review results and discuss
root causes for gaps• Prioritize which gaps the
team should focus on filling• Identify target metric
values
Deliverable• Benchmarking Results
Deliverable• Prioritized Gaps• Target Metric Values
for Future State
Deliverable• Completed Data
Collection Spreadsheet
2 – 3 Weeks 1 - 2 Weeks 2 – 3 Weeks
Validation of Findings Through Benchmarking
• The following Accounts Payable process metrics were benchmarked…• Total cost to perform the process "process accounts payable" per $1,000 revenue• Personnel cost to perform the process "Process accounts payable" per $1,000 revenue• Value of purchases (in millions) per "process accounts payable" FTE• Cycle time in hours to enter manual invoice data in to the system• Percentage of invoice lines that are matched the first time• Percentage of invoice line items paid on time• Number of FTEs that perform the process "Process accounts payable (AP)" per $1 billion revenue• Percentage of discounts available that are taken• Percentage of disbursements that are first time error free• Percentage of invoice line items matched with a PO• Percentage of invoice line items received electronically• Total cost to perform the process "Process expense reimbursements" per $1,000 revenue• Personnel cost to perform process "Process expense reimbursements" per $1,000 revenue
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Benchmarking Utilizing APQC
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Time to Realize the Vision
Inefficient Business Process
Lack of Enabling Key Technology
Unable to Generate
Spend Analysis Reporting
• Reduced invoice cycle time• Opportunity to better take advantage of early
payment discounts• Existing audit deficiencies remediated• Suppliers empowered to maintain information
and inquire on processing status• Enable smarter buying decisions via spend
analysis reporting• More transparency surrounding spend• Consistent use of transactional elements to
support enhanced reporting (e.g, purchasing category)
• Via use of imaging technology, enable resources to focus on value add tasks vs. manual data entry and chasing invoices
• Electronic invoice approvals using Oracle AME• Suppliers empowered to electronically
participate in the AP process via Oracle iSupplier Portal
• Reduced storage and/or destruction costs
Identify and Implement Key
Technology Enablers
Build Reporting Capability After
Driving Increased Transaction Discipline
Re-engineer Process Assuming
Central Invoice Submission and
Supplier Collaboration
The Expected OutcomeThe
ProblemThe
Imperative
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Prioritized Phases
QUICK WINS(1 – 2 MONTH DURATION)
Simple process or technology changes/enhancements resulting in value to the organization; To-Be process communicated/accepted & imaging technology selected/procured
Foundational(3 – 5 MONTH DURATION)
To-Be AP business process & technology implemented; initial group of suppliers on-boarded to iSupplier Portal
Increased visibility available as enhanced reporting available to stakeholders
Extend(2 – 3 MONTH DURATION)
To-Be AP process and enabling technology stabilizes; next group of suppliers on-boarded to iSupplier Portal
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Prioritized Phases
Current State Current State
People
Process
Technology
Quick Wins
Foundational
Outcome
Vision
Extend
Quick Wins Provide Immediate Value
Process Buy-In and New Imaging Technology Selected; Basic Understanding of BI Capability Established
1 – 2 Months
3 – 5 Months
2 – 3 Months
A Leading Practice AP Process That Drives Efficiencies and Value Across the Organization
Socialize and Obtain Buy-In/Acceptance of To-Be AP Process
Stratify Suppliers for Applicability & On-Boarding Sequence to iSupplier Portal
Supplier Clean-Up & Enablement for iSupplier Portal Group 1 to Group X
Implement Oracle iSupplier Portal for Supplier Group 1 to Group X
Select and Procure Imaging Solution
Execute Change Assurance and Solution Adoption Strategy to Wendy's and Supplier Stakeholders/Users
Enhance Use of AP Subject Areas in Financial Analytics (e.g., Spend Analysis)
Enable Oracle Cash Management for Payment Reconciliation
Utilize Oracle AMEfor Requisition and Invoice Approvals
Foundational Business Process & Technology Implemented; Initial Group of Suppliers On-Boarded to iSupplier Portal
Reporting Capabilities Enhanced after Initial POC
Additional Suppliers On-Boarded to iSupplier Portal
Implement Imaging Solution
Proof of Concept: AP Subject Areas in Financial Analytics
Implement To Be AP Process Including Centralized Submission of Invoice& System Approvals
Supplier Clean-Up & Enablement for iSupplier Portal Group X to Group X
Execute Change Assurance and Solution Adoption Strategy to Wendy's and Supplier Stakeholders/Users
Payment Reconciliation Process
Extend Use of iSupplier Portal to Group X to Group X
Oracle ADI or 3rd Party to Upload Select Manual Invoices
Implement Personalization to Warn of Duplicate Invoices
Enter Invoices Related to Manual & Wire Payments in Oracle
Communicate Roadmap to Broader Team & Stakeholders
Identify Organizational Impact Resulting From New Process & Technologies
Implement Organizational Changes
Item Master Rationalization and Clean-Up
Establish Item Master Maintenance Process
• Developed a Business Case that resulted in a payback of 1.9 years• Primary Cost Drivers
• Imaging Software & Hardware• Implementation Services• Incremental Internal Resource
• Primary Benefit Drivers• Increased Labor Productivity• Early Payment Discounts• Reduced Shipping Costs• Reduced Storage and Retrieval Costs
• Business Case Included in Current 2015 Budgeting/Planning Cycle
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Business Case
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• Q4 2014: Deferred Maintenance/Patching
• Q4 2014/Q1 2015: Infrastructure/Technology Enablement
• Q4 2014/Q1 2015: Restaurant Invoice Process Streamline
Current Initiatives
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