the evolution of p2p - amazon web services · 02/12/2016 the evolution of p2p angelica hurtado avp,...

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 02/12/2016

The Evolution of P2P

Angelica Hurtado

AVP, Procurement Operations

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 2 02/12/2016

Agenda

• Introductions

– About the presenter

– About Voya Financial™

• Procurement and Accounts Payable trends

• Voya baseline

• Voya transformation

• Procurement Operations

• Driving P2P value

• Travel and expense side of P2P

• What’s next?


About the

presenter

• Leads the team supporting and

administering P2P-related technology and

programs

• Responsible for:

– Developing strategies to facilitate compliance

– Optimizing effectiveness of Procurement technology

– Growing programs that drive automation and efficiency

– Managing a cost-efficient and balanced Travel Program

– Executes special projects to completion

Angelica Hurtado AVP of Procurement Operations

Voya


• Procurement/Finance structure

‒ Centralized Procurement

‒ Decentralized buying

‒ Centralized Accounts Payable (AP)

• Systems

‒ Ariba Buyer (Invoicing) 9r1

‒ PeopleSoft Financials (AP, GL) 9.1

‒ Concur

Our company

‒ ~7,000 employees

‒ $850M total spend ($500M PO)

‒ Vision to be America’s Retirement CompanyTM

‒ Transitioned from ING U.S. to Voya Financial in April 2014

(NYSE: VOYA)


Trends

ERPs

Invoice Processors

Buyers

Centralized Procurement

eProcurement

Spend visibility

PCards

Procurement/ Finance alignment

Invoice Automation

Early pay discounts

Source to pay integration

Technology enablers

VCards

Dynamic Discounting

Innovators

Arbiters of risk, reward and creativity


Baseline

• Decentralized AP – no managed Procurement function

– “Authorization Tables” to identify who had the authority to approve

specific invoices (manually maintained)

– No automation

– No technology enabled to support process

• Only had controls around approving and paying

PROCURE APPROVE RECONCILE PAY


Key

drivers

Policy/process coordination

• Major policy dependencies – purchasing policy drives invoicing process, invoicing policy dependent on purchasing process.

• E-Invoicing; PO invoice process.

Better serve our customers and suppliers

• Why leave it up to customers and suppliers to decide who to contact?

Purchasing/payment solution support

• PCard partnering – need to align administration, benefits, etc.

Add overall value

• Protect against labor arbitrage.

• Deliver true operational savings.


8

What can

be done?

Committed to enhanced savings (both sourcing and

operationally) as a result of establishing better governance and

ultimately actively managing indirect spend

Built governance around P2P

‒ Process owners, policies

‒ Established Procurement Operations (P2P Operations)

Implemented e-Procurement technology and PCard program

‒ Enhanced controls around purchasing and payments

CFO

Procurement

AP

Sourcing

Finance


How can it be

done?

Communication/Training

Technology

Customer Support – Process/Transactional

Program Administration

Procure-to-Pay

Set Up and Maintain Supplier in Supplier Maintenance

Payment of Invoice per Procurement Policy and Contract

Invoice Entry, Exception Approval

PROCURE APPROVE RECONCILE PAY

Opera

tions

AP


How can it be

done? (Cont.)

‒ Deliver customer service

‒ Administer programs

‒ Educate and build awareness

‒ Author and maintain policies

‒ Manage technology

‒ Monitor compliance

• E-buying

• E-invoicing

• PCard reconciliation

• T&E reporting

• Automation growth

• Training/Web content

The Procurement Operations team is focused on supporting and continuously improving procurement programs, processes,

technology, communication and training solutions. Our goal is to optimize the efficiency, usability and compliance of the P2P process,

while minimizing liability and risk.

Procurement Operations


A Procurement

transformation

approach

1. We first changed our organization.

2. We made an investment in technology to integrate

and automate P2P.

At first glace, the goals of

Procurement and AP seem

independent:

…but Procurement and AP

objectives and processes are

actually INTERDEPENDENT.

• Buy right good/service

• Buy from right supplier

• Buy at the right price

Procurement goal

• Pay right supplier

• Pay right amount

• Pay at right time

AP goal


• Centralized AP

• Managed Procurement

• Investment in technology to automate P2P

- Decentralized AP

- No managed procurement

function

- Centralized AP

- Managed procurement

with AP reporting into Procurement

- Strategic Sourcing

- P2P Operations

- AP

-Travel

Procurement

Services

A Procurement transformation

approach (cont.)


Driving P2P value

‒ Significant FTE

reduction/redeployment

‒ Early pay discounts

capability

‒ PCard rebate revenue

‒ Procurement policy

compliance

Cost Savings


• Process efficiency

‒ Receipt-to-approve days: automated workflow via e-

procurement

‒ Invoices per full-time staff: touch-free e-invoices

Process efficiency

‒ Use PO and e-invoicing

‒ Align AP with Procurement

Best Practices

Driving P2P value

(Cont.)


Integrated

Travel and

Expense

Using the same tool or provider for both online travel booking and expense reimbursement.


Definition

T&E expense management

application with back-end business

rules (2005)

Online booking tool with front-end

business rules and agent-assisted

reservations (2012)

Mobile-device functionality

Integration Travel & Expense at Voya


Benefits

• Business rules facilitate policy compliance; drive savings.

• Combined reporting is powerful and efficient.

• Standard interface makes it easy to use.

• Design allows for expense reports to be prepopulated with:

– Corporate travel card transactions

– Travel itinerary

– Hotel e-receipts

• Streamlined process improves reimbursement time.


Benefits:

Front-end

business rules

• Limited booking options – Can book coach class airfare only (centrally billed)

– Can book preferred car rental/car size only (for airport locations)

– Cannot book 5-star hotels, hotels requiring a deposit and/or non-refundable hotel rates

• Visual cues – Hotel city caps displayed

– Preferred hotels highlighted

– Lower airfare options listed

• Dynamic interaction with Travel team – Hotel over $300 booking prompts lower-cost option email from

Travel team

– Weekend booking prompts contact with employee to ensure compliance with combined business and personal travel policy


• Flags used to identify potential non-compliance

– Yellow flag: identifies policy exception within expense report

approval flow

– Red flag: prevents employee from submitting

• Focus on key expense areas

– Reservations made outside of booking tool (air and hotel)

‒ Ensure employee charged company rate

‒ DOC – know employee location

‒ Facilitate favorable supplier negotiations

– Meals exceeding $75 per day

• Require agency itinerary with expense report

Benefits:

Back-end

business rules


Duty of Care

(DOC)

• Instantly locate your employees

• Seamlessly integrate with DOC

application such as iJET or International

SOS

• Quickly assist employee and notify

authorities in an emergency

• Promptly alert employees and their

managers via email

20

Agency

DOC App

Email employee, manager


Savings

opportunities

• Significantly reduce agency fees

– 70-75% fee reduction using online booking tool

• Improve travel spend leverage

– Increase compliance to preferred suppliers for deeper

air, hotel and rental car discounts

– Increase Travel Policy compliance to ensure

expenses are justified and approved


Regulatory

compliance and

other benefits

• Ensure expenses comply with applicable state, federal,

and international regulations.

– Meals and entertainment

– Gifts

– Spending on government officials

– Spending on foreign officials

• Empower your employees.

- Allow policy to guide them.


Travel

analysis:

Snapshot

ABC 10%

XYZ 18%

Upward 55%

Airborne 10%

Best 6%

Middle 11%

Airborne $0.23

Best $0.23

Middle $0.28

ABC $0.24

XYZ $0.24

Upward $0.26


24

Consequences

of not aligning

The results of aligning…

…far outweigh the costs of not

teaming up.

Added cost

Conflicts

Confused customers/ suppliers

Savings

Efficiency

Supplier relationships


25

What is

the ideal

state?

• Fully Automated AP department

– 100% Electronic Invoices

• Optimized PCard spend under the constraints of our

methodology and controls

• Fully integrated P2P technology

• Fully integrated Travel/Expense reimbursement process

• Actionable data, analytics and benchmarks

• Best-in-class P2P organization


26

Critical

success

factors

Aggressively manage compliance (monthly and quarterly).

Redeploy processors as automation enablers.

Make e-invoicing and AP automation a priority.

Comprehensive change management effort.

Organizational structure includes AP reporting to Procurement.

Senior management buy-in, commitment.


27

Key takeaway

• Integrated and centralized Procurement and AP organization is

the most effective way to manage spend, manage suppliers

and facilitate process efficiency.

Procurement Accounts Payable P2P

Path

to

Real,

Measurable

Results

the evolution of p2p - amazon web services · 02/12/2016 the evolution of p2p angelica hurtado avp,...

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