building a business case for p-card and erp · pdf filefull erp-card program management...

The ERP-‐Card: Revolution, Evolution, or Symbiosis?

Rick Swartwood WNS Technology Services

Session #1225

1 © Copyright 2011 WNS (Holdings) Ltd. All rights reserved

Introduction

P-Card Basics

Technology Basics

P-Card Disconnection

The ERP-Card

Summary


History: British Airways captive, spun-off into a third-party

Revenue*: $616.3 million in FY2010-11

Employees: 21,000+ serving 200+ clients

NYSE traded (Symbol: WNS) since July 2006. First Indian pure-play BPO to be listed on NYSE

Operational footprint: India, Sri Lanka, The Philippines, Romania, U.K., Costa Rica and U.S.

23 delivery centers around the world

600+ business processes from simple transactions to complex analytics

With a Reputation for Complex Multi-Process Delivery

The first BPO provider to form a strategic

relationship with The Chartered Institute of

Management Accounting

First Indian BPO to be

listed on NYSE

The first BPO provider in India to achieve

compliance with the Payment Cards

Industry Data Security Standard (PCI-DSS 1.1)

Rated amongst the Top-2 Indian BPO providers for five

consecutive years by NASSCOM

WNS Aviva Relationship, Best

New Outsource Award

May 2009

PCI-DSS PCI-DSS 1.1

WNS is a Well-Established Global BPO and ITP Leader

* US GAAP Revenues


BizAps Procure to Pay Optimization Solutions

Goods Receipt

Goods Receipt / Service Confirm.

Purchase Order

Master Data Management Purchase

Order

Purchase Orders

Purchase Order

10

20

30

Purchase Order

Invoice Processing (Verification)

Vendor invoice

Purchase Invoice Payment Purchase

Order

Exception Handling / Approval

Vendor Management Master Data Management Vendor Portal

Accounts Payable Workbench OCR Scanning E-Invoicing Management Dashboard Web-based Approval Return to Vendor Web-based Coding Accruals Management Dynamic Discounting

Supply Management Web Requisitioning Packaged SRM E-Sourcing Spend Analytics

ERP-Card Program Management

Full ERP-Card Program Management Solutions for SAP and Oracle


-Card?

P-Card


P-Card Success = Balance of Value and Risk

Maximize Minimize Control

Environment


The Goal Controlled P-Card Growth

P-Cards Add Value But Carry Risk

Control First Growth Second

A Need for Cost/Benefit Balance

Business Process Efficiency

Efficient and Effective Risk Mitigation

Opportunistic Growth Approach


P- In the Beginning -Cards

Were Transaction Data Was Not That Useful Transaction Data Was Not That Important

Why ???? Heritage P-Card business processes were all manual P-Cards came with a unique set of industry driven data elements

Because it was only small unimportant stuff With data limitations only small unimportant stuff could be bought

Things Like They Used To Be P-Cards are no longer for small unimportant stuff There is strategic value in P-Card data ERP technology rules the landscape


The P-Card Evolution

Low Value Purchases Petty Cash Replacement

MRO Spend, High Transaction Vendors

Select Purchase Orders Capital, Direct Material, etc

Traditional

Catalog Hybrid

E-Payables

ERP Integration P-Card Disconnection

P-Card Meets the Brick Wall at ERP

Historical P-Card Targets


ERP Benefits Enterprise Interoperability Process Efficiency Control Efficiency Data Integrity

Accomplished Through

Single Data Base Data Conformance Elimination of Interfaces Organizational Expertise

Typical Business Environment ERP-Based

Enterprise Efficiency


Typical Business Environment ERP-Based

One Integrated Solution Finance/Accounting Accounts Payable Purchasing Vendor Management Receiving Inventory Control Supplier Quality Human Resources Reporting



One Integrated Solution Finance/Accounting Accounts Payable Purchasing Vendor Management Receiving Inventory Control Supplier Quality Human Resources Reporting

What is Missing???

ERP Technology What is Missing?



ERP Technology & P-Card Technology

P-Card

P-Card Technology

Disconnected


Typical P-Card Program =

P-Card Disconnection

P-Card

ERP Inefficiency

Any Business Process Outside of ERP is By Definition Inefficient

Information

Business Processes Business Processes Business Processes Business Processes


ALL P-Card Activity Occurs Outside of ERP Environment

P-Card

P-Card Business Process Disconnection Inefficiency caused when members of an ERP supported function perform their P-Card tasks using non-ERP technology

Program Administration User Access/Security/Roles Cardholder Reconciliation Reconciliation Approvals Audit and Compliance Sales and Use Tax Identification/Reporting Merchant Volume Reporting Small Business Reporting


P-Card

P-Card Information

P-Card Information Disconnection Data risk and inefficiency created when industry-based P-Card data is interfaced and combined with organizationally relevant ERP data


The ERP-Card A Program Management Approach ERP-Based P-Card Program Management

The Marriage of Two Powerful Transformation Tools P-Cards & ERP The Best of Both Worlds

Full P-Card And ERP Integration ERP Efficient P-Card Controls ERP Efficient P-Card Business Processes ERP Conforming P-Card Information

P-Card

Integration Disconnected X


The ERP-Card = Natural Product Evolution

Traditional

Catalog Hybrid

E-Payables

ERP-Card

Process Efficiency

Data Integrity

Control Efficiency

Strategic

Tactical

Inefficient Efficient


Fully Integrated ERP-Card Program Management

The ERP-Card Fully integrated user access Fully integrated approvals Fully integrated posting Fully integrated auditing Fully integrated statusing Fully integrated reporting Fully integrated with every ERP-based Business Process Fully integrated with every ERP-based Department/Organization Fully integrated with all ERP data elements

Card


ERP Efficient P-Card Controls GRC, Roles, Privileges, User Access Inherited from ERP Drill-down P-Card Audit Trail inside of SAP

ERP Conforming P-Card Data Elements ERP integrated P-Card/procurement reporting Improved P-Card data enhances audit trail

ERP Efficient P-Card Business Process P-Card Integration w/key processes Retirement of non-ERP system for users

P-Card Program Flexibility Contractual Flexibility w/Provider One SAP P-Card process regardless of provider or card type

Fully Integrated ERP-Card Program Management


The ERP-Card = An e-Commerce Hub

ERP Master Data ERP Reporting

Traditional P-Cards Catalog Programs E-Payables

Reverse Auctions Non-PO Payments

Dynamic Discounting

e-‐Commerce Hub

Material Management/

Receiving

Purchasing, Sourcing,

Requisitions

Controls Audit &

Compliance

Finance & Accounts Payable


The ERP-Card = A Supply Chain Optimization Tool

Supply Chain Optimization Strategic P-Card use Supplier segmentation strategies P-Card buyers/buying orgs P-Card P-Card Vendors e-Procurement Hub Card


Why An ERP-Card?

Control

Data and Visibility

Efficiency

Program Health

P-Card

Solution

Card Card


Rebate/Revenue Share Increases New Organic Spend Opportunities Catalog Programs, E-Payables, etc.

Reduction of AP Costs Reduction of Invoices to be processed Reduction of Customer Service support

Elimination of non-SAP System Efforts Broader leverage of SAP Investment Reduction of interfaces and associated maintenance

Program Health = Controlled P-Card Growth


Making the Case for an ERP-Card Approach

Focus On P-Card Control Complex business process High risk business process Sr. Management Peace of Mind

Focus On Process & Data Integrity P-Card spans the entire P2P Value chain Integration presents P- Overcomes P-

Control Environment Business Processes Data Integrity


Final Thought Most organizations spend millions of dollars implementing powerful and complex ERP systems

To bring greater organizational interoperability To bring greater enterprise process and control efficiency To improve the integrity of the business related information To transform the way they do business

it make sense to approach a process with the complexity and risk profile of a P-Card the same way?

Business Case Preparation

P-‐Card And ERP Integration Consulting

Questions and Information Please Contact

Rick Swartwood

[email protected]

813-‐716-‐0315

How Can WNS Help?

mailto:[email protected]


ERP-Card Efficiencies


Increase Efficiency of P-Card Controls

Increase Control Efficiency All audit and compliance activity performed in ERP Fully integrated to HR for user info Fully integrated user access, roles, privileges, GRC Fully integrated goods receipts and/or user delivery confirmations ERP congruent data provides superior audit trail ERP approvals provide superior audit trial

Card


Increase Integrity of P-Card Information

Increase Data Integrity All data is ERP conforming Fully integrated with all ERP master data Fully integrated account validation process Fully integrated BI financial and procurement reporting Fully integrated Sales/Use tax determination/reporting Fully integrated Small Business reporting

Card


P-Card Integration With Accounts Payable

Integrate With AP All P-Card data is ERP generated AP personnel perform P-Card tasks in ERP Fully integrated financial transaction posting/clearing Fully integrated/automated e-Payables process Fully integrated Dynamic Discounting settlement option

-Card

Card


P-Card Integration With Procurement

Integrate With Procurement All P-Card data is ERP generated Procurement personnel perform P-Card tasks in ERP Fully integrated for use with or without requisitions Fully integrated ERP P-Card PO creation

P-Card Fully integrated P-Card merchant/ERP Vendor link

-Card

Card

building a business case for p-card and erp · pdf filefull erp-card program management...

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