dynamic discounting, supplier self services and workflow

AP Overhaul:

Dynamic Discounting, Supplier Self-Services and Workflow

Introduction

Marcia Golden, Accounts Payable Director, Coca Cola Bottling Co. Consolidated

[email protected]

Bertram Meyer, CEO

Taulia Inc.

[email protected]

Today’s Agenda

Coca-Cola Bottling Co. Consolidated Highlights

December 2010 Goals & Objectives Issues We Were Facing Project Business Case System Evaluations & Selection Process 2011 Implementation Project Rollout

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2012 Grand Finale Our Success Story Change in Focus to Dynamic Discounting

Opportunities Role of Procurement Remaining Course of Action for 2012 Lessons Learned Questions & Answers

“How did we ever do without it?”

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CCBCC Highlights

Began operations in 1902 in Greensboro, NC Currently largest independent Coca-Cola

bottler in U.S. $1.7 billion in revenue Approximately 6,000 employees Five manufacturing facilities, 70 sales and

distribution centers and provides 185,000 vending machines to our customers

Approximately 130 million cases of product sold annually


December 2010

Goals & Objectives


Issues We Were Facing

Large amount of paper invoices received daily Lack of transparency into invoice location and

audit trails No visibility of unrecorded liabilities Manual discrepancy resolutions Lack of Chart of Authority compliance Large amount of resource time to provide

service to our suppliers


Project Business Case

Engage Sr. Management Support Conduct market research for Best Practices Determine Business Requirements

SaaS application SAP compatibility Real time processing Easy to implement with limited internal IT

resources


Project Business Case

User friendly application Supplier portal for digital invoice submission

and supplier self-service Dynamic Discounting Electronic approval routing with audit trail Online discrepancy resolution Complete invoice visibility and status Overview and spend analysis reporting


Evaluation & Selection Process

Evaluation of 4 SaaS vendors that closely met our defined business requirements

On-site application demonstrations Multi-functional business and IT resource

involvement Vendor and software comparison matrix Selection and negotiations

Taulia Inc. Project plan development with key milestones


2011 Taulia Implementation Four Module Implementation

#1 Taulia Supplier PortalDigital invoice submission

Manual invoice entryPO flipEmail File uploadElectronic file transmission

Supplier self-service Invoice and payment statusProfile updates


2011 Taulia Implementation

#2 Taulia Dynamic DiscountingEarly payment option in exchange for

invoice discount functionalityCurrently limited return on short term

investment

#3 ReadSoft Invoice CockpitTotal transparency of all invoices, status

and audit trailSingle area for invoice processingUnrecorded liability visibility


2011 Taulia Implementation

#4 ReadSoft Web CycleElectronic approval routing based on HR

feedChart of Authority complianceElectronic check request formDocument attachmentsThumbprint audit trail


Project Rollout

Phase I – Supplier Portal & Dynamic Discounting

Supplier listing with transaction count and spend

Phased tiered supplier rollout Supplier communications Supplier portal invitations Portal enrollment Digital invoice submission

Manual, PO flip, Spreadsheet upload, electronic file

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Project Rollout

Phase II – Invoice Cockpit Accounts Payable work area Invoice validation for accurate data capture Invoice type categories for easy filters

Invoice based on PO Invoice not based on POCheck requestsPosted invoices Invoices with errors Invoices rejected In approval workflow


Project Rollout

Phase III – Web Cycle Determination of end users Hierarchy upload from HR Chart of Authority inclusion Check Request form development Project Communication Training Webinars End user support team


2012 GRANDE FINALE


Successful Results!


All phases successfully implemented and “Live” in late October of 2011

Internal personnel eager to adopt the new system – very helpful to implementation

54% of Invited suppliers enrolled within five weeks

90% of enrolled suppliers use the portal

Other Successes

Electronic approval process now enforces the company Chart of Authority .

Complete invoice transparency and audit trails =big hit with users, managers and vendors

Visibility of unrecorded liabilities aids financial reporting .

Through attrition, 1.5 AP staff positions eliminated due to process efficiencies and streamlining.


A Few Surprises

Dynamic Discounting far more important than originally expected

Role of Procurement is critical to negotiations with vendors and adoption of the new system

Audit trail of the who, what, and when history of an invoice creates huge time savings for customer service inquiries – adds accountability


Action Items for us in 2012

Increase the # of suppliers enrolled in the portal and that submit invoices electronically

Take advantage of further automation opportunities:

During invoice data validation, set OCR tolerances to only show exceptions = a confidence level

Automate email attachment “ingestion” into the system

Create invoice logic in the system that automatically posts certain invoices


Lessons Learned

A SAP certified solution for a “SAP shop” is key:

Very low IT resources required, buy-in from IT

Security preserved by using standard SAP transactions in the background

End product is a seamless integration

End user acceptance is excellent

Users promote portal usage from their vendors

Visibility has benefits far beyond A/P


Lessons Learned (cont.)

Think through the rollout phases:

Implement internal and A/P systems first

Rollout supplier portal and dynamic discounting after internal systems are in place

This allows time to focus on supplier adoption and communication with them

Use your “clout” as a customer – require vendors to invoice electronically


After the hard work is done, we think you will also ask:

“How did we ever do without it?”

Now we’ll show you how it’s done!


Solution Demonstration


Questions & Answers