Re-designing Global P2P:Driving Efficiencies and Enhancing
Effectiveness
16th Annual North American Shared Service and Outsourcing week 9th March 2012
Agenda
1. A brief introduction to Unilever
2. The role and purpose of Enterprise Support in Unilever
3. Leveraging the Opportunity - The P2P process evolution
4. The ongoing Journey
5. O&A
Business OverviewBig global brands
Sold in 180 Countries and used by 2 Billion consumers every day
Top 25 brands = ¾ of Unilever’s sales
Our Evolution
FROMFROM TOTO
200 Business Units200 Business Units 25 MCO’s25 MCO’s
270 Factories270 Factories> 400 Factories> 400 Factories
Multiple Legacy SystemsMultiple Legacy Systems 4 SAP Platforms4 SAP Platforms
1200 Managers (top 3 layers)1200 Managers (top 3 layers) 600 Managers600 Managers
2 Chairman: Advisory Board2 Chairman: Advisory Board 1 CEO : Non-Exec Directors1 CEO : Non-Exec Directors
FiefdomsFiefdoms One UnileverOne Unilever
Our Business: Unilever’s cross-functional business services organisation
Providing close to 40 support services to:• 168,000 employees and business units in 180 countries
• Across HR, Finance and Procurement, IT, Workplace and Information Management
A large professional service community • Of 1,800 FTEs
Partners with over 20 strategic providers • With 10,000 employees serving Unilever
Our Mission
Continuous improvement at our heart
Single set of globally
aligned KPI’s
Simplify, standardise,
automate and digitise
services
End-to-end processes and global
process convergence
Cost and consumption transparency
Metrics
Visibility & Transparency at the Top of the Business
By Service Line
Consistent GLOBAL aligned Metrics
Our Providers in Finance Services
The JourneyThe Process E2EThe Process E2E
Purchase Order Good Receipt Invoice
ReceiptInvoice
Match and PostInvoice Payment
Reporting & Queries
The PastThe Past
Low Compliance Low Compliance Paper Manual QueryResolution
Low Payment on Time
ProliferationOf terms
Phone and Email
The AmbitionThe Ambition
100% No PO,No Pay
ComplianceOn Delivery Electronic Work Flow &
1st pass Match Self ServiceOn tim
Standard terms
e PaymentExtended Terms
Leveraging the Opportunities
E-Invoicing (OB10)
Efficiency + Sustainability +
Enabling SF
E-RTV
Sustainability +Productivity +
Efficiency
SupplierFinancing
Enabler to extend terms
SAP IM (DCIW)Cycle Time & 1st Pass Yield
Terms Extension &
HarmonisationWC improvement
Vendor QueryPortal
Easy accessFor Suppliers
100% No PO,No Pay
ComplianceOn Delivery Electronic Work Flow &
1st pass Match
On time PaymentExtended Terms
Standard termsSelf Service
ARIBAIP PO Creation
Metrics &Change
Management
Some of the Results
Area of Impact Electronic vs. Paper Invoices Trend
Reduction in Cycle time 5 Days vs 21 days T
86% vs 76%Increased rate of FPY T
Increased rate of On time Payment (+6 days) 91% vs 78% T
Facilitating the Supplier Finance Project
69% vs 24% (available within 10 days) T
Actual example of largest single transactional entity
The Results
0
5
10
15
20
25
30
35
Oct ’11Apr ’11Mar ’11 Dec ’11May ’11 Nov ’11 Jan ’12Aug ’11June ’11 July ’11 Sept ’11
Days to Post – Doc Date (Electronic)Days to Post – Doc date (Paper)
Only PO based documents
The Results
66
68
70
72
74
76
78
80
82
84
86
88
Mar ’11 Apr ’11 May ’11 June ’11 July ’11 Aug ’11 Sept ’11 Oct ’11 Nov ’11 Dec ’11 Jan ’12
First Pass Yield (Electronic)First Pass Yield (Paper)
Improved FPY for OB10 documentsDrop in Jan 12 on account of increased Price Mismatch and Framework order documents.
The Insights
8%
3%Late Approval
19%Short Payment Terms
Late Invoice receipt
Other
54%
16%
On time Payment
62%15%0-10 Days11-20 Days
23%21-29 Days
Due to the 3 day posting date
© copyright OB10 2010 OB10 and the OB10 logo are trademarks of OB10 Limited and are protected by law
Unilever North America Current Statistics
• 8,500 vendors loaded to OB10 across PI/IP • 1,371 vendors agreed to eInvoicing• 50% of all PI/IP invoices are now electronic• Once Cordillera activity diminishes, a campaign will continue to target
the top 100 vendors totaling more than 120,000 invoices• Intra-company invoicing through OB10 is being evaluated between
US and CA (over 5% of invoices)• Explicit PO validation with supplier rejections are implemented (but
not active due to Cordillera)• 76 new vendors in 6 weeks due to project Cordillera• OB10 successfully migrated over 1,000 vendors to the more complex
invoicing requirements of ASCC AG
Our approach
1. Meet local needs effectively and efficiently Through leveraging our global scale
2. Deliver end-to-end services Through our integrated services network :
Local Service professionals close
to the market operation
Global Operations Centres
providing scale
Outsourced transactional
activity where this makes sense
3. Provide rapid integration of newly acquired businesses
(‘plug and play’)
P2P Vision – Full E2E integration
SupplierNetwork
SupplierMaintenance
Purchase Requisition
Purchase Order Delivery Invoice
ReceiptInvoice
ProcessingInvoice Payment
Reporting & Queries
Procure Pay Shared
Create a Procure to Pay service line to exploit end-to-end process benefits for suppliers, users and clients:
• Service excellence and improved supplier / user experience• Develop and deploy global capabilities eg. Catalogs and E-Invoicing• World class compliance levels• One Global Process Model• Operation within the 3-tier Enterprise Support organisation model
END
Q&ADiscussion