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DRIVING THE TRIPLE C FACTOR
Costs down, compliance up and cycle time contracted
Driving the triple C factor:
Compliance upCosts down Cycle time contracted
Industry reference
Aberdeen Group (2007)
5% reduction in bottom line costs
20% improvement in the top line
Paper manufacturers
embrace electronic media
Good business practice
Improvingproductivity
SAPPI
Our business
Planting
Depot
Maintenance
Fellings
Shorthaul
Seedlings
R&D
Transport
Our business
2 slides
Goodreturns
Strongbalance sheet
To ensure that Sappi is an exciting, growing and profitable leader
in paper and specialised cellulose.
Our business
How?
Maintaining and growing global
leadership position as a low cost
dissolving wood pulp producer
Growing high margin speciality
paper business in all regions
Smaller and simpler low cost graphic paper business
Maximising value from our forestry operations in SA
Our diverse business = broad supplier base
Our business: touching you …
Our business: bringing it home
Global footprint, local flavour
screen
Our business: countrywide
Enstra200kton uncoated fine paper
Ngodwana195kton paper pulp230kton kraft paper140kton newsprint210kton dissolving wood pulp
Tugela280kton kraft paper130kton paper pulp
Stanger110kton coated paper & tissue60kton pulp
Cape Kraft60kton kraft paper
42% local uncoated paper
28% coated fine paper
40%of SA’s packaging
paper requirements
36%of local newsprint
supply
Our biggest asset: our people
AP process
Industry hype: shared services
Accounts payable: goods and services
Shared services
Opportunity for Sappi
Reduce waste
Lean six sigma: green belt
Business process mapping
Shared services
Reduce geographical creditors
clerk footprint
Business process mapping:
as-is at the time, identify gaps, propose
opportunities
Scan paper invoices / capability
to receive SARS compliant email pdf
(128kb encrypted)
Another challenge borne –
courier costs, lag time in transporting
invoice to hub
Birth of technology
Re-deploy team centrally,
right sizing exercise
Technology investigation
Technology feasibility and
capability
Business process
management
Value engineering
Value engineering
Travel and expense reporting
Time recording and travel booking
Travel charges are integrated with
payroll
Multiple payment methods including
electronic payments
Automatic audit Integrated with the G/L Automatic alerts
Accounts payable and expense
Value engineering
Average cycle time for creation
of annual forecast
(in days)
Total external audit cost incurred
(in selected currency)
% of invoices using online processing
% discounts lost from suppliers
Average discount
(in %)
Average time to close
monthly books(in days)
Average time to create a new report for which there is no previously defined
report template
(in days)
Annual purchase amount eligible for discounts (in million currency)
Key metrics: AP AR
Value engineeringShared services hub for account payments
Task:process 144k invoices annuallyacross 8 company codes
Enter ReadSoft
Evaluated alternate products in the
marketplace and competitors are present
at Saphila 2014.
Sappi EU and NA use the product, so it was a non-event in the choice
of ReadSoft.
Sappi single SAP project presented timeline and challenges, resulting in
upgrade to EUNA’s ReadSoft environment.
Preferred technology of choice:
Invoices
Enter ReadSoftPreferred technology of choice:
InputPaper
Image file PDF XML Fax
EmailInvoices
OutputInvoice image files
Invoice dataTarget system
Configuration & administration
Optimise
Manager
Interpret VerifyScan Transfer
Production
Interpretation tuning
Measures of success
70% 31
ReadSoft tool with optimised
functionalityRight first time: Invoices processed
per clerk per day
Opportunity for continuous
improvement
(EU standard in Poland is 33)
CURRENT ACTIVITIES
Readsoft – Invoices processed
ROAD AHEAD
Continuous improvement
InfrastructureHardware Architecture
Slow response time
Continuous improvement
Technology focus: tweaking the engine
Optimising the scan to improve right first time
Continuous improvement
Reduce workflowsImprove GR/IR ‘Touch less’
invoices
Training: Goods receipt, service acceptance and workflow handling
Way forward
Shared services AP is proving success Payroll next opportunity
Self-reflection
Compliance upCosts down Cycle time contracted
Your turn!Questions and queries
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