Invoice Automation Paul Turner
- 1. Basware Invoice Automation Paul Turner - Consultant Basware www.basware.com
- 2. Presentation Content • Basware in Brief • Analyst Review and Customers • Basware Enterprise Purchase to Pay • Accounts Payable Challenges • From Invoice Processing to Invoice Automation • Order Matching • Automating Recurring Invoices • Solution Key Features • Basware Mobile • Implementation and Integration • Customer Cases • Why Basware Invoice Automation?
- 3. Basware in Brief • Founded in 1985, publicly listed on NASDAQ OMX Helsinki • The global leader in purchase-to-pay automation • Develops software for procurement and financial process automation • More than 1,000,000 software users in over 1,500 large organizations • Services through a network of 11 offices in Europe, Asia-Pacific and the US • Business partners in 30+ countries • Net sales EUR 93 million in 2009 • 750 employees at end of 2009
- 4. Analyst Review Basware is number 1 in all report dimensions: Strategy, Current Offering and Market Presence The Forrester Wave™: AP- EIPP, Q2 2008 A survey made in the US of Electronic Invoice Presentment and Payment vendors The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
- 5. What the Analysts think Nigel Rayner / Gartner March 2009 - on Basware Connectivity “Typically, companies don‟t get more than 40% to 50% of their invoices electronically,” he says. “What Basware is doing is making it possible to move that up closer to 100%." Mickey North Rizza / AMR Research May 2009 – on Basware strategy “Basware‟s strategy of global marketing, partnerships, and product announcements is clearly positioning the company to make a larger impact on the supply management market.” Deborah (Debbie) Wilson / Gartner June 2009 (Critical Capabilities for Best-of-Breed E-Procurement Vendors) - on Product Viability “Basware's impressive entry into the e-procurement market and its good customer feedback thus far earn this solution an Excellent viability rating.” Benoit Lheureux and Paolo Malinverno / Gartner 20 Nov 2009 – on Gartner's Magic Quadrant for Integration Service Providers, Basware is listed as “Notable Vendors Not Rated for This Magic Quadrant but Worth Watching Closely” Duncan Jones / Forrester December 2009 – on Spendmatters blog on Basware “Buyers should insist on a commitment to interoperability as a key criterion when selecting a network provider.” Mickey North Rizza / AMR Research 10 Dec 2009 – on Basware success in procurement space “Basware has experienced 10.5% growth in sales since January 2009 and had a 70.4% improvement in operating profit in the same time frame. For 3Q09, the company‟s net sales were up 12.2% and operating profit was too, at 69.2%. Expect Basware to continue its strong penetration into the U.S. market. The company is poised for growth and tackling Ariba head on by targeting the CFO. Invoice automation and the procure-to-pay (P2P) business process are two key areas CFOs are still struggling to automate and lean out. The quarterly results of most companies were bleak throughout 2009, but procurement and settlement technology vendors Ariba, Basware, and Bottomline Technologies continued to post positive earnings. Because of its European demonstrated invoice management product, AMR Research expects Basware to continue its strong growth in the procurement and invoice automation markets.”
- 6. Basware has more than 1,500 large customers
- 7. Basware EPP Solution Suppliers Basware Connectivity Supplier Catalog Purchase Message Supplier Activation Scan and Capture E-invoice Exchange Exchange Services Service Exchange Procurement Invoice Automation Customer Legacy Systems e.g. Financial Systems, ERP Basware Professional Services
- 8. Accounts Payable Challenges in Organizations Control & Organizational Compliance Cost Savings Efficiency Approval policies High cost Personnel waste inconsistent of accounts time on and/or payable transactional not followed process issues Cash discounts No records of More time needed unused, late invoice history, for value-added payments boost no audit trail activities unnecessary costs Best practices Overall process No real-time view in AP process of compliance on cash flow not known or with SOX, IAS... implemented
- 9. Basware Invoice Automation • All invoices from all sources are processed in one application • Goal: Straight-Through-Processing for all invoices • Enablers: Basware S&C Services, E-Invoicing and Matching • Full automation for PO-based and „orderless‟ invoice processing • Dynamic exception handling • Full audit trail for all invoices
- 10. End-to-end Invoice Automation process Basware Invoice Automation 4 Manually selected workflow 3 Automatic workflow 2 Matching against contracts 1 Matching against PO‟s Basware anyERP adapter Basic Data Complete Invoice Data ERP
- 11. Basware Connectivity for IA? • We take care of the details so you don‟t have to worry about them • Basware Connectivity for IA provides: - Fast-track to true e-invoicing - The most cost efficient way of getting all invoices into the electronic process - Enriched high quality invoice data that enables maximum automation level in the accounts payable process - Faster total invoice throughput time • It means real, measurable savings through - Reduced total process costs – no investments on scanning labor, software or hardware + max automation in AP process - Early payment discounts, preventing late payment fees and improved working capital management • Transaction based pricing – initial investment requirement close to zero
- 12. All the invoices delivered as electronic invoices Intercompany Invoices TOP20 Basware Basware Business Transactions Invoice Automation Suppliers Matching Suppliers Suppliers TOP20 Basware Supplier Portal Small Suppliers ERP WEB ENTRY
- 13. Focus on increasing the number of real e-invoices Basware Supplier Portal Accounts Receivable Accounts Payable Basware Supplier Business Buyer Transactions Basware Scan and Capture Supplier Activation Service
- 14. Handling of Non-PO/Non-recurring Invoices Scan and Code invoice Review Approve Transfer capture data with the help invoice to invoice invoice data using the latest of posting check that (controlled by to the ERP OCR-technology templates and invoice is approval limits or financial or receive ”favorites” lists. justified and and rules). system for invoice in correct. payment. electronic form.
- 15. PO Invoice Automation Invoice matches Informative work flow with approved purchase order (PO) Invoice does not Automation match with PO (discrepancy)
- 16. Orderless or Recurring Invoices Orderless invoices typically do not result from Purchase Orders and are often ‘Recurring’ by nature Most companies will have some combination of the following: • Facilities - rent - services: maintenance, security, plant care - electricity, water, oil - telephone, internet connections • Employees - mobile phones - home internet - car lease • Professional services - outsourced employees - various services - consulting • Equipment rental - IT hardware, construction equipment, software (asp, saas), copy machines, coffee machines
- 17. Orderless or Recurring Invoice Automation Invoices match Informative work flow with approved payment schedule or budget (contract) Automation Invoices do not match with contract (exceptions)
- 18. Solution Key Features Compliance • Full audit trail for each transaction, process transparency • Extensive business rules management • Versatile reporting and analysis tools with cash flow management • Personal user archives as well as the corporate archive Automation • 100% e-Invoices at header or line level detail • Automatic handling of order-based and orderless invoices • Automatic workflow functionality • Coding templates Flexibility • User-friendly interface for ease of use • Backup/alternative employee routing • Complete multi-organization management and multilingual processing, especially supporting Shared Service Centers • Seamless integration with ERP and AP systems • Rapid implementation in just 6-8 weeks
- 19. Basware Implementation and Integration • Fast implementation (6 - 8 weeks calendar time) - Off-the-shelf package solution – quickly adaptable through parameterization, without lengthy programming • Flexible ERP interfacing with online collaboration and batch integration - Ideal fit for international organizations with multi-ERP environments - Basware has been integrated with over 200 different ERP and other business support systems • Standardized delivery project
- 20. Significant Savings at Finnair “Basware Invoice Processing Finnair, a Finnish airline, was facing challenges helps us save over EUR in their financial department with: 1,000,000 annually since we started to use the system in • No clear processes for invoice handling. 2002 and we expect even • Manual invoice processing that was laborious and greater savings in the future.” inefficient, often resulting in lost invoices. • Extremely high costs associated with each paper invoice. Results • Significant cost savings through clearly defined processes and automated workflow. • Invoices are now easy to track throughout the process. Mervi Mäkelä, • The system is transparent, easy to use and requires Director, Cash Management • no extensive training to get started.
- 21. Star Track Express Delivers with Basware EPP Star Track, an Australian Transport and Logistics company had significant challenges to overcome: • A distribute process involving 30 branch offices “Since implementing the Basware Purchase to Pay • Entirely manual invoice workflows Solution, out invoice volumes have grown by • No visibility to outstanding invoices 30%, however, we can now Results process these more efficiently and haven’t had to increase the • Out of the box, the solution met 90% of their demands number of staff in our Accounts with the rest easily customizable Payable team.” Jeff Monico, General Manager of • Full visibility and transparency to all aspects of the Information Systems process • Matching ensures that employees are only involved with exception handling – all other invoices are fully automated • Able to deliver the highest possible service to customers and vendors
- 22. Greater Efficiency for Heineken Heineken Nederland, a leading Dutch brewery, wanted to: “Now, we are capable of automating many routine • Centralize and digitize invoice processing to achieve actions. We have speed and efficiency. pleased end-users who • Automatically match invoices with purchase orders. are committed to • Find a system that could be integrated with SAP and realizing greater Proost (inhouse built ERP). efficiency and better quality.” Ed Prins, Financial Services Results Manager • Automation of routine invoicing activities; Basware‟s solution handles workflow, matching and archiving. • Order Matching success rate 93% against Proost, 75% against SAP • Heineken has realized time savings of 28%. • Substantially extended reporting possibilities.
- 23. Why Basware for Invoice Automation? • Superior functionality. Over 12 years of product development together with more than 1,500 customer organizations in more than 60 countries has brought the highest level of automation and most efficient processes to Basware Invoice Automation products. • Package application. Parameter-based configuration enables fast implementation, roll-outs, upgrades and return on investment. • Scalability and flexibility. Easily adapts to changing needs in the business environment, enabling organizations to think big and start small. Also provides a perfect fit for multinational use and SSCs. • High level of usability. Exceptionally user-friendly GUIs and user-specific language selection from 18 available languages. • Off-the-shelf interfaces. Basware solutions have been integrated with more than 225 different ERPs and financial systems. They are also certified for use with SAP, Oracle, Microsoft and EMC.
- 24. For more information paul.turner@basware.com 0408 617 110 or 02 6255 9905 Controlled Performance – from Purchase to Pay
Editor's Notes
- #8: This is the big picture. The entire Basware Solution Suite which covers everything from sourcing through to payment. The combination of software and various strategic outsourcing options for our customers (services such as: SAAS, Basware Connectivity) provides a complete solution which dramatically improves the efficiency and effectiveness of processes relating to: sourcing, contract lifecycle management, purchase management, invoice processing, and performance management (KPI).Invoice Automation is the flagship but everything else complements it. Basware Connectivity is covered in greater detail in slides: 12-14
- #12: The earlier slide describes how we ’Automate’ with IA. Point out the data input ie: scan/capture and e-invoice and go into it in more detail with Supplier connectivity.This slide (and SC in general) is an alternative to keeping the scan and capture services in-house. SC for IA is a service which is less expensive, provides better results in terms of the scanned product and includes a dynamic action plan to convert paper invoices to e-invoices over the long term thus continuously driving down costs associated with the process while improving the quality of the invoices.
- #13: The message is: With SC, you will recieve 100% e-invoices from a single source. The quality will be managed and constantly improved upon.
- #18: Employees: all white collar employees will have a mobile phone and likely a home internet connectionProfessional Services: it is very common to purchase professional services of almost all kindsWhat you don’t know is how these different elements will be reflected in Contract Matching. Some like rent and rentals will almost definitely be schedule based contracts. Others like professional services could be either schedule based or budget based and utilities such as water, oil and electricity will probably be best handled with a budget based contract and a seasonal cost distribution template.