procure-to-pay a journey from simple to sophisticated focused on process efficiencies
DESCRIPTION
Procure-to-Pay A Journey from Simple to Sophisticated Focused on Process Efficiencies. REIT = Real Estate Investment Trust (NYSE:BXP)* 157 Properties 60.3 Million Square Feet In-Service $ 28.4 USD Billion Total Combined Market Cap Five Regions/Markets Boston New York Washington DC - PowerPoint PPT PresentationTRANSCRIPT
Procure-to-PayA Journey from Simple to Sophisticated Focused on
Process Efficiencies
REIT = Real Estate Investment Trust (NYSE:BXP)*• 157 Properties• 60.3 Million Square Feet In-Service• $28.4 USD Billion Total Combined Market Cap
Five Regions/Markets• Boston• New York• Washington DC• San Francisco• Princeton
* December 31, 2012
720+ Employees across 100+ Physical Locations- Corporate Office with Five Regional Offices
JD EnterpriseOne 9.0 / Tools 8.98.4.3 • Implemented January 1999 / Upgraded May 2009 / Implemented Tools Upgrade
Procurement• Originates Across Many Locations; Decentralized• Centralized Accounting• Small to Large Transactional Value• Striking a Balance between Risk/Controls and Efficiencies
THE ENVIRONMENT
6+ Year Evolution of Procure-to-Pay Processes and Systems
OUR JOURNEY…
“We’re a PO culture….”
THE TRIGGER…
…four different systems.
….five different processes.
We standardized: NexusPayables (real estate solution provider)
Workflow Process
PURCHASE ORDERS
…but
INVOICES BY TYPE
2008 2012
Rationalize – Process Improvement (2009)• Invoice Scanning• Invoice Consolidation• Preferred Vendor Program• Recurring Vouchers
…HAS TO BE A BETTER WAY
Invoice Scanning- 235 File Drawers- Centralized Scanning- #1 Used Application- Complete Transparency
…HAS TO BE A BETTER WAY
Invoice Consolidation - Examples• Otis = National Contract 350• Janitronics = 1,700 to 600• Temco Industrial = 1,800 to 430
Preferred Vendor Program• Within Each Region
Recurring Vouchers• Leveraging JD Edwards to Recycle Vouchers during the
Contract Period = 250
…HAS TO BE A BETTER WAY
Reduce InvoiceCount by 18%from 2009-2010
New Programs (2010-12)• Outsourcing Utility Invoice Processing-Payment• US Bank P-Card• US Bank C-Card
JD Edwards Integration
…HAS TO BE A BETTER WAY
• Electricity, Water & Sewer, Natural Gas, Steam & Fuel Oil
• Invoice Processing• Invoice Audit
• Future: Energy Reporting
…OUTSOURCING UTILITY INVOICES
• 207 P-Cards = 14,000 Transactions/$4.2 Million• 150 C-Cards = $2.4 Million
• Online Coding, Receipts, Online Approvals• Rebates• Audit• JD Edwards Integration
…P-CARD & C-CARD
INVOICES BY TYPE
2008 2012
87,000 60,000
6+ Year Evolution of Procure-to-Pay Processes and Systems
OUR JOURNEY…
PAYMENTS
2008 2012
• Bank of America ePayables (Ghost Card)• 2012 = $12.5 Annually = 4,000+ Payments• 340 Vendors• Rebate = $157,000
• Bank of America Paymode (ACH)• 2012 = $161.3 M = 7,000+ Payments• 1,000 Vendors• Cost = $.50 vs. $2.11/Check• Cost Effective/Efficiency for Both Parties
…GHOST CARD & PAYMODE
PAYMENTS
2008 2012
45,500 42,000
• 85% of Transactions are Only 10% of Spend
2013 RE-BASELINE
• Establish PO Threshold Minimum
• Eliminate PO Requirements for Contracted Purchases
• Receiving Optional for PO’s under a Dollar Threshold - TBD
• Migrate Lower Dollar Transactions from PO to P-CARD• Push Spend to $10,000,000+
• Raise Single Transaction Limit• From $2,500 to $5,000
2013 ‘PROCURE’ OBJECTIVES
Reduce the Number of Checks!!!
• Convert to ACH or Ghost Card (36% -> 50%)
• US Bank P-Card• One Auto-Debit/Month ~ 1,200 Transactions
• US Bank C-Card• One to Two ACH Payments/Month ~ 200 Cardholders
2013 ‘PAY’ OBJECTIVES
• Partnership
• Challenge your Banking Relationships
• Push the JD Edwards Solution
• Measure then Re-Measure
…LESSONS
Questions? Comments?
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