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Making Accounts Receivable

Automation Work for You

March 2017

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Today’s speakers

Bryan Pederson:Operations Director for North America at Amalto. Over 16 years of experience in P2P & O2C processes, focusing on financial excellence, process optimization, leveraging technology solutions that actually save customers money

Joe McNally:President JMA Consulting who has more than 20 years experience in Accounts Receivable

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Agenda

Part 1: About Manual Processes Part 2: Moving From Manual to Automation Part 3: Automation in the Real World Part 4: Not Going It Alone Q&A Contact us

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Part 1: About Manual Processes

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Why are manual processes so prevalent?

Supplier organizations are comfortable doing things the way they’ve always donePerceived cost associated with moving to automation seem cost-prohibitiveSupplier organizations don’t trust external or cloud based technology (or believe they already have a handle on things)Manual processes are not intimidatingCustomers still take (and like) paper and standard emailed invoices and still pay us via paper checkTouching paper makes processes seem real

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The truth about manual processes

A comfort level with manual processes may mean a fear of automation and/or technologyTransitioning to automation and using technology is not cost-prohibitive – it’s more cost-effective in the long runIn terms of trust, manual processes are filled with errors, inconsistencies and ultimately slow everything downRegardless of touching paper invoices and paper checks – the important thing is the data contained within those channelsAutomation and technology does not make the process less real – it simply allows for greater efficiency and productivity

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Audience question #1: In your opinion, what is important to move from manual to automation?

Robust ERP SystemElaborate e-Invoicing systemExtensive IT resources (expert staff and software)Any invoicing system

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What’s Really Needed to Move from Manual to Automation?

Any invoicing system

and

Willingness to find a better alternative

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Part 2: Moving From Manual to Automation

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The 3 levels of transactions between trading partners: where does your organization stand?

MailPhysical delivery

EmailCustomer Portal

B2B integrationERP to ERPManual

Electronic

Automated

- Cost reduction +

- C

usto

mer

satis

fact

ion

+ Currentl

y

Desired

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The cost associated with submitting an invoice

Bottom performers (manual) = $39.61Top performers (automated) = $1.17

From:Accounts Receivable Performance – Doing OK is no longer good enough. APQC 2012

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Manual – low performing

Mail, Physical Delivery (to include practices that are very manual)- Mailing of invoices to customers using a 3rd party service or

performing in-house- Courier service

No visibility to the invoice once it has entered the mail systemHeavy manual intervention

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Electronic – better performing

Email, Customer Portal (to include activity that is better but still not the most efficient)Most of your emailed invoices are being sent out in batches on a nightly basis using in-house technology or a 3rd party service- Some emailed invoices are generated manually (compose, drag

and drop, complete and send)Some portal entry into Customer Invoice Networks (Ariba, Cortex, Oildex, Tungsten, etc)- Requires staff to ‘manually re-create’ the invoice into another

system- Provides some visibility to invoice statuses, provided you log

into those systems to check for updates to your invoices- Requires separate processes and data gathering for each

customer/network- Training/Re-Training on processes and external systems with

staff turnoverLess manual intervention

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Automated – top performing (leading practice)

B2B Integration, ERP to ERP (identify the top performing practices that results in the most efficient, top performing organizations)Complete B2B integration with your customers or their respective invoice networks or portals- Associated backup/attachments are sent along with the

invoice- Visibility to the invoice as it flows through the approval and

payment process- Data validation in place with immediate notification of

invoice errors, rejections and disputes- Ability to quickly correct any invoice errors without

requiring a daunting credit/rebill process- Ability to track key metrics like DSO, error or rejection

rates, employee and customer performance and other financial metrics (volumes, cost per invoice, etc)

Little to no manual intervention

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Audience question #2: What process in your organization could benefit from automation the most ?

InvoicingReportingCollectionsWorkflowReduction/Elimination of Exception Handling

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Life as a top performing, automated organization

Quick ROI, immediate benefits. Reduction in up to 75%-90% of FTE effort involved in your process- Reduction of effort in manually re-keying invoices into portals- Normally calculated by invoice count X 5-15 minutes of effort

Decrease in invoice errors (One customer reduced 50% of error laden invoices)Minimal IT effort in managing customer requirement changes, formatting, mapping and developmentOutshine your Peers – Gain a Competitive Edge – Buyers prefer to do business with vendors that have minimal impact to their administrative costs and are more often included in RFQ’s/Terms.

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Part 3: Automation in the Real World

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Real World Example

Joe McNally – 20 years in Accounts Receivable

Directed large multi-national company with >$3B annual invoicing from low-performing manual processes to top performing integrated B2B processesHands on experience with most portal based solutions availableUnderstands the internal requirements and commitment necessary to convert off of old ways to cost savings new methods

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Audience question #3: What is the biggest obstacle your organization has in transitioning to automation?

Internal supportPerceived costNot enough time to do the proper investigationNot knowing which solutions are the best for their ‘unique’ businessResistance to change

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Part 4: Not Going It Alone

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When looking for help in transitioning to automation, make sure…

What’s needed What’s delivered

Fully managed solution ✓The vendor takes care of everything for you (minor IT support required, minor UAT testing, customer requirements changes)

Scalable solution that can grow with your business ✓

Make sure the vendor can continually handle new and different formats, implement complex processes and deliver complex portal connections (Ariba, Cortex, Transcepta…)

Ability to integrate multiple BUs & ERP systems ✓

The vendor should specialize in creating one process across your various companies & ERP systems & bring them together through the e-Business Cloud

Reporting Suite ✓ The ability to provide you complete visibility into every needed AR metric

Complete Order to Cash solution ✓

Once a customer is connected, make sure that connection can be leveraged for customer orders, field ticket data & transport documents

Track record on delivery ✓

How many connections, integrations with different companies have been completed successfully? What’s the turnaround time?• 10 connections?• 25 connections?• 100 connections? • 180 days?• 120 days?• 90 days?

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Amalto at a glance

As one of the leaders of the Order to Cash process, Logistics and Field Data Management leveraging cloud-based state-of-the-art technologies, Amalto brings the full power of digital B2B exchange automation to many organizations.

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Amalto at-a-glanceThe Leading Provider of B2B Integration and Document Exchange Services

Offices in Houston, Calgary, Paris and MexicoFounded 12 years ago by experienced IT Executives 5M+ transactions with a value of $15B+ annuallyAmalto is one of the largest North American integration platforms Amalto is a fully managed Order to Cash serviceCompleted fully automated B2B connections - with Customers, Logistics providers, Banks, SaaS solutions…Iron Mountain - e-invoicing connections with 100+ clients

Oil & Gas Environmental Industrial Enterprise

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Amalto at-a-glanceA fully managed solution for B2B Integration and Document Exchange Services

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Amalto at-a-glanceLarge Corporations and Service Providers, often leveraging the e-Business Cloud for AR automationLarge Corporations

Service Providers

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Amalto at-a-glanceAmalto Customers are connected to hundreds of Trading Partners across multiple industries/sectors

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Amalto at-a-glanceAmalto works with most networks, AP solution providers, marketplaces and hubs

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Implementing automation - visible impacts in a few months

A phased approach

Limited IT impacts

Fully managed

service before and after go-live

100% of transaction - emails to

B2B

Live in 3 - 6 months

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Q&A

Q&A

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Contact us

Phone: 1-713-965-0227

E-mail: bryan.pederson@amalto.com or carman.geres@amalto.com

Website: https://www.amalto.com/company/contact-us

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Making Accounts Receivable

Automation Work for You

March 2017