stan tomko, corporate f&t and technology manager, honeywell - autobank for sap case study
DESCRIPTION
A Presentation from the 10th Annual European Shared Services and Outsourcing Week 2010. To find out about the 11th Annual European Shared Services and Outsourcing Week 2011 in Amsterdam, visit www.ssoweek.comTRANSCRIPT
AutoBank for SAPCase study
Stan TomkoCorp FT & Technology Manager
May 2010
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Table of contents
• Intro• Company overview• Key challenges & pain points• Tool/technology selection• Implementation approach• Scope• Roadmap
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Company Overview
128,000 employees in more than 100 countries
A Fortune 100 company – sales of $36.6 billion in 2008
“World’s Most Ethical Companies“
– Ethisphere Institute
“America’s Most Admired Companies”
– Fortune magazine
“Best Places to Launch a Career”
– BusinessWeek magazine
“The Alexander Hamilton Award”
– Treasury and Risk magazine
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Honeywell’s Business
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Key challenges & pain points
Labor intensive cash application process
Very low degree of automation (both in and outside of SAP)
Long cycle time
Process inconsistency across businesses
Standard SAP functionality not robust enough to accommodate our key requirements
Cumbersome and labor intensive cash application process
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Tool selection / requirements
SAP enabled
Ability to process any type of bank feed / customer remittance
Ability to handle large volume of transactions
Ability to automate complex payments (FX, discounts, bank fees, etc)
Ability to use a variety of references in matching (Invoice #, SO #, PO #, etc)
Ease of implementation
Robust and efficient process in SAP
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Program scope
All 4 Honeywell’s division
100% of the SAP based revenue
All payment methods (Wire, Lockbox, ACH, etc)
AR/AP/GL
AutoKonto (bank feeds) and AutoAvis (remittance advices)
Cash allocation done quicker with less effortAutoBank deployed across Honeywell
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Business case
Completed for each division separatelyCumulative saving after 3 years of $1.3M USDGlobal FTE reduction of ~40%
Before AutoBank implementation9 bank accounts in scope
8 auto-processed by standard SAP, 1 manualAverage auto clearing rate of 37%Required effort: 13.7 hrs
After AutoBank implementationAuto clearing rate increased to 82%Effort reduced by 44%FTE reduction realized in Mar 2010
Specialty materials US
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Implementation approach
Pilot implementations carried out by Hanse Orga
Honeywell Global implementation team to work-shadow the HO consultants throughout sample implementations
Honeywell Global implementation team to lead or partner in implementations for all subsequent roll-outs with Hanse Orga’s guidance if required
AutoBank support to be owned by SBG specific SAP support teams
Savings through internal knowledge and expertise on AutoBank
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Key milestones
AutoKonto Pilot implementation (UK and NL)Started in May 2009Completed in October 20096 bank accounts in scopeAR/AP/GL
Subsequent implementations:Specialty Materials US (live in Feb 2010)Turbo US (live in January 2010)
Planned roll-outsAerospace US & Europe (go-live in June 2010)SM US Lockbox (go-live in September 2010)Turbo Australia (go-live June 2010)
AutoAvis Pilot implementationTo be commenced in Q4 2010
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Roadmap (April 2010)
Q4Q3Q2Q1
2012
Q4Q3Q2 Q3Q2Q1
2011
Q4
ACS*
TS
SM
AERO
Q1
2010
* Strong partnership with CP/S
Aerospace
SM Leg
ACS NL&UK Phased with future SAP roll outs
Phased with future SAP roll outs
Turbo
Go-Live
IT infrastructure in place
Aerospace (1000 & 4000)
AutoKonto
AutoAvis
SM Legacy (CC1000)
SM Legacy EU
CPG
Remainder of Turbo
Aerospace (remaining CCs)
UOP Global
UOP Global
CPG
FM
FM
ACS EMEA
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Key Benefits for HON
Implementation timePilot implementation of AutoKonto took 4 months!Subsequent roll-outs less than 3 months
Ease of implementationInternal HON teams driving implementations with no or minimal support from Hanse Orga
Ease of maintenance Cash app teams capable of maintaining rules without having to go to IT
Robust and flexible rule enginePost-processing with guidance by AutoKontoDashboard identifying weak spots immediately (Performance cockpit)
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Opportunities
Work with Bank to ensure that all data gathered from customers are being fed overStimulate customers to start providing data allowing for easy bank reconciliationSAP customer master accuracy
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Questions
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