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Know how you can “Optimize the Lifecycle of Payments to Insights through Technology & Process”. Check key points covered by Guest Speakers, Roger Poirier, Assistant Controller & Lilah Stone, Director of Financial Applications of LQ Management LLC, who shared the success story of leveraging automation in their Finance Back Office to enhance business productivity.
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Webinar
Optimize the Lifecycle of Payments to Insights
through Technology & Process
Speakers
• Roger Poirier
Assistant Controller, La Quinta Management LLC
• Lilah Stone
Director of Financial Applications, La Quinta Management LLC
• Ramaswamy Subramanian
Head Global Operations -Datamatics Global Services
12/04/2013
11 AM - 12 PM EST
Agenda
• Introduction to the Panel
• What’s going on in the marketplace & how
is it affecting businesses
• La Quinta’s Journey to Excellence
• La Quinta Overview
• The Need for Change
• Our Recipe for Success
• LQ’s Partnership with Datamatics
• Datamatics Payment Solutions Overview
2
Digital = Mainstream
33
The Importance of Going Digital
44
Goals
55
Top Priorities
66
La Quinta A Journey to Excellence
• Headquarters: Irving, TX
– Approximately $900M Annual Revenue
– Privately held with over 8,000 employees nationwide
• Service Offerings
– One of the leading owner, operator and franchisor of select-service hotels serving the
midscale and upper-midscale markets through more than 800 hotels in the U.S., Canada
About La Quinta Inns and Suites
8
midscale and upper-midscale markets through more than 800 hotels in the U.S., Canada
and Mexico under the “La Quinta Inns & Suites” brand
• Culture
– People, Passion, Integrity, Excellence, Unique
– Excellence
• Do ordinary things extraordinarily well
• Good is not good enough
• Challenge the status quo
8
• The La Quinta creed:
– Make it better, faster and cheaper
• Accounting goals support Corporate goals through:
– Continuous improvement through process review and reengineering
La Quinta Accounting Goals
9
– Continuous improvement through process review and reengineering
– Focus on value added activities
– Eliminate unnecessary costs
– Evaluate and improve partnerships to achieve our goals
9
• Non-PO Based system
– Decentralized vendor relationship and invoice submittals/approvals
• Vendor
– Over 10,000 active vendors
– Terms = 30 days for non-exception vendors
• Paper Checks
– 68K checks per year (1,300 per week)
La Quinta Accounts Payable
10
– 68K checks per year (1,300 per week)
– Over $360M in annual spend
• P-Card Program
– Approximately 700 cardholders
– Over $16M in annual spend
• Virtual MasterCard Program
– Implemented in early 2013
– $60M in annual spend
10
• Department transitioned from San Antonio in 2007
– Little to no personnel transitioned
– Inexperienced staff with little historical knowledge
• Outsourced Accounts Payable process
– Contracted with software provider
– Processor (imaging and workflow) was outsourced
– Timing and compliance issues
– Overall lack of visibility to invoices
La Quinta Accounting – The Need for Change
11
– Overall lack of visibility to invoices
• Financials were impacted
– Downstream areas (Fixed Assets, GL) suffered
– High turnover within the first two years of transition
– Added headcount to combat problems
– Delayed close
• How could this have been prevented?
11
• Assess Business Processes
– Perform business process review
– Determine viable solutions
• Devise a Plan
– Consider other competing projects and resources
– Analyze the business impact
– Develop a realistic time line
Recipe for Success - Project Selection and Implementation
12
– Develop a realistic time line
• Select the Right Vendor
• Follow a Deployment Methodology
– Analyze Success Factors
– Change Management (Communication and Training)
• Monitor Results and take Corrective Action
12
• Implemented a new and improved outsourced AP solution
– Pre-coded invoices with SLAs tied to accuracy
– Required reduced timing of invoice processing with SLAs tied to compliance
– Customization of software catered to La Quinta’s specific needs
– Visibility to invoices as they “move” through the system
– Dynamic reporting of metrics and add hoc data analytics
La Quinta Partners with Datamatics in 2012
13
– Significant reduction in cost
• A showcase project that realized the goal of making it Better, Faster and Cheaper!
13
• Other projects realized
– Virtual MasterCard to pay invoices timelier
– Flash reporting of expenses throughout the month rather as first reported during
close
• Allows for partnering on other projects (Future State)
Benefits of an Effective Partnership
14
• Allows for partnering on other projects (Future State)
– Automated franchise billing
– Automated account reconciliation
14
15
Process
�Payment
Management
�E-invoicing
w/supplier portal
Au
tom
ate
d�Receipts
Management
Going Digital: AP Invoice Automation Options and Strategies
16
Bus iness Object ives
� Invoice Scan +
Workflow
�Price compliance
�Discount
Management
Management
Reduce Costs Increase
Controls
Optimize Working
Capital
Strategic
16
Companies that automate accounts payable operate at 12%12% of
the costs of those that don’t
Companies that operate in an electronic environment capture
250% 250% more early payment discounts
Companies who actively leverage spend data and analysis in their
sourcing process have 67% 67% higher savings compared to those
Companies that automate accounts payable operate at 12%12% of
the costs of those that don’t
Companies that operate in an electronic environment capture
250% 250% more early payment discounts
Companies who actively leverage spend data and analysis in their
sourcing process have 67% 67% higher savings compared to those
•
•
•
17
The Result
sourcing process have 67% 67% higher savings compared to those
that don’t
Companies that automate accounts payable have an 11% 11% higher
contract compliance rate
Visibility of cost is improved by 52%52% in electronic environments
sourcing process have 67% 67% higher savings compared to those
that don’t
Companies that automate accounts payable have an 11% 11% higher
contract compliance rate
Visibility of cost is improved by 52%52% in electronic environments
•
•
17
Datamatics Procure to Pay
Shared Supplier Network & Supplier Enablement ServicesInvoicesInvoices
Sup
plie
rsSu
pp
liers
Invoices
Sup
plie
rs
OrdersOrders
Bu
yers
Bu
yers
Orders
Bu
yers
Optimizing your Processes with Datamatics Procure-to-Pay
18
� Invoice Automation
� Automated Workflow
� Price Compliance
� Discount Management
Supplier Self Service Reporting/AnalyticsReceiptsReceipts
Sup
plie
rsSu
pp
liers
Receipts
Sup
plie
rs
PaymentsPayments
Bu
yers
Bu
yers
Payments
Bu
yers
18
AP Processing
Invoice Routing and Approval
Payment
AP Processing
Invoice Routing and Approval
Payment
Supplier Questions
Mail Room Processing / Courier Costs
Data Entry / Re-Entry
Access for Auditors / 3rd Party
Supplier Questions
Mail Room Processing / Courier Costs
Data Entry / Re-Entry
Access for Auditors / 3rd Party
The Total Cost of Invoice Processing
19
Access for Auditors / 3rd Party
Explaining Disputes to Suppliers
IT Infrastructure / Maintenance / Support
Scanning
Document / Hardcopy Storage
Secured Disposal
Environmental / Green Charges
Data Retrieval and Reporting
Analysis / Best Practices
Discounts and Relationships
Compliance Reporting
Access for Auditors / 3rd Party
Explaining Disputes to Suppliers
IT Infrastructure / Maintenance / Support
Scanning
Document / Hardcopy Storage
Secured Disposal
Environmental / Green Charges
Data Retrieval and Reporting
Analysis / Best Practices
Discounts and Relationships
Compliance Reporting
19
ePM – Complete Integrated Solution
20
Reporting & Analytics Snapshot
21
Datamatics FAS offerings
CFO Dashboards & Analytics
Spend AnalyticsProcure to
Pay
Managed S
erv
ices
Record to Report
Payment Solutions
Pay
Order to Cash
Managed S
erv
ices
Financial Services, Mortgage Exception Handling
22
Quality Certifications
Delivering
high quality
Certified for ISO 27001
HIPAA compliant
high quality at all times
SSAE 16 compliant processes
Certified ISO 9001-2008 (by DNV)
Certified SEI CMMI Level 3, V 1.3
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