Get your priorities right: how to ensure you consistently pay your global suppliers on time
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The document outlines Halliburton's transformation of its accounts payable processes which began with the implementation of SAP and document imaging technology in 1999, aimed at efficiently managing a high volume of supplier invoices. Key enhancements included the use of optical character recognition for faster processing and improved reporting capabilities, resulting in significant cost savings and increased employee morale. The transition eliminated cumbersome paper processes, enabling better visibility and timely payments to suppliers across multiple countries.
Get your priorities right: how to ensure you consistently pay your global suppliers on time
- 1. Accounts Payable Tech Summit London 2011 Get your priorities right: How to ensure you consistently pay your global suppliers on time by Halliburton Energy Services Eastern Hemisphere Business Support Centre Dubai, U.A.E.
- 2. Agenda About Halliburton Before 1999 – How were Invoices managed? We needed a Change! Why? Year 1999, What did we Change? Why we chose this Strategy? Walkthrough – From Invoice Scanning to Posting Tracking of Unprocessed Invoices & Prioritisation How effectively this Solution works with OCR? Tangible Results of this Solution Factors that helped to make the Change If given a chance to do this again? What if, we had not done this Change? Questions © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 2
- 3. About Halliburton Founded in 1919 One of the world’s largest providers of products and services to the energy industry More than 60,000 employees in approximately 80 countries Serves the upstream oil and gas industry throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimising production through the life of the field © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 3
- 4. About Halliburton Halliburton consists of two divisions: – Drilling & Evaluation – Completion & Production. As of December 31, 2010, these two divisions accounted for approximately $18 billion in Revenue Guess how many supplier invoices had been processed? 1.7 million!! How does Halliburton manage such a high volume? © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 4
- 5. 3 BUSINESS SUPPORT CENTRE LOCATIONS DUNCAN, OK DUBAI PANAMA © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 5
- 6. Before 1999 – How were Invoices managed? Invoices were stored & filed across different offices Storage of these invoice papers incurred costs Invoices would take several days (and even months) before it was captured for data entry Information are stored without digital support files Complicated to trace invoices when filed/archived. Difficult task to search for documents when queries are received from vendors or auditors It was an era of Box Files, Papers, Snail Mails & Staplers!! © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 6
- 7. We needed a Change! Why? Processing – To manage High Volume invoices(1.7 million per year) – Requirement for Centralized Processing to support various countries (80 Countries) – Increased Geographical Diversity Efficiency – Reduce AP Processing costs – Improve the efficiency of processing invoices in a timely manner Retaining Customer satisfaction – Ability to pay Vendors as per agreed credit terms – Better working Capital Technology & Communication © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 7
- 8. Year 1999, What did we Change? SAP was implemented as a global single instance Filenet deployed to digitally store invoices • Filenet is a document imaging software that is used to store electronic copies of documents Implemented Quillix along with MuWave Queue Utility • Quillix is a web-based scanning software that is used for scanning documents for storage in Filenet • Muwave Queue Utility is a web-based tool for managing the contents of Image Services Queues © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 8
- 9. Why we chose this Strategy? 1. Scanning, importing and indexing of documents easily from anywhere in the world 2. User friendly web based applications 3. Allowed Real Time visibility of invoices 4. Accrual of unprocessed invoices made easy 5. Improve the controls effectively on AP process 6. Reporting capability to produce queue summary and detail reports for viewing in Excel format. 7. Ability to move multiple images from one queue to another in less than a minute. 8. Logs can be maintained for all queue transfers along with user, queue and image number information. © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 9
- 10. Walkthrough – From Invoice Scanning to Posting 1 2 3 Barcode cover sheets define the Invoice is scanned into Quillix Electronic Image is created and queue the invoices in the batch using Fujitsu scanners barcodes are attached to the image will be routed to. Or as index values and placed in the Barcode sheet is placed in front Soft copy files are uploaded into correct workspace Distribution of the invoices Quillix using Web Import queue 5 4 Queues are managed and Routing program runs and reports are generated using the reads index values off each Queue Utility Tool. image. Router then moves images to the correct process queue for processing. © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 10
- 11. e: r si nclud D esigne F eature ure P rocess ificatio n ual Ca pt a ss Vis um ent Cl na il Doc T humb ec ognitio n aracte r Code R Ch Bar P rinted Hand ) Ma chine & CR & IC R nition (O Recog gnition y Too ls co uer For ms Re p and Q on se Looku alidati er Da taba ks and V ect ory us pu t Mas ct i ve Dir F ield In tration/A a dminis Group n. atio integr © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 11
- 12. dit for: Re-R oute/E Al lows t/Dele te/ er Que ue Ins us y Bus y/Unb Functio ns Queue ts “Multi” nt Repor Conte ity Q ueue all Activ Logg ing of Funct ions Full ccess to A cured Se sed Admin W eb-ba © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 12
- 13. Tracking of Unprocessed Invoices & Prioritisation Queue Utility can generate report on unprocessed images from all queues Details include scanning & queue entry date Images can be allocated for data entry prioritised by oldest ones Invoiceis it done areHalliburton?by How Queues in Prioritized Quick Fixed Process Process Pay Queue Queue Only Queue Rescan Resolution Queue Queue © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 13
- 14. What were further enhancements? OCR (Optical Character Recognition) – A software operation that can “read” pixels on a TIFF format File Optura Workflow – Document available for online coding and approval. This workflow has been embedded in SAP © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 14
- 15. How effectively this Solution works with OCR? Input Processed instantly in Dubai Output Invoice scanned from Australia via QUILLIX 1010101010101010 01010 1010101010101010101 0101 10101010101010101010 1 101010101010101010 0 1010101010101010 1010 1 1010101010 001 101 101010101010101010 1 C E FI FI Scanned L Extract X invoices O & P extracted from C A SAP Workflow FileNet S Validate O Process R Data R S I T F Payment Same Day Y or with Next Payment Run VERIFIER © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 15
- 16. Tangible Results of this Solution Saving Trees (Corporate Sustainability) Invoice image retrieving time reduced to 15 seconds Invoice images could be retrieved from any part of the world ROI in less than 6 months AP FTE reduced by 30% by field locations Approx. 15% cost saving on AP front-end activities Manual Archiving is now a thing of the past. Online visibility of unprocessed/problem invoices Reporting instances are made faster and easier. Employees morale is higher than before © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 16
- 17. Factors that helped to make the Change Executive Sponsorship to make this Change happen Globally, people accepted the need for a change Specialized training & development for Employees Halliburton’s commitment to the Technology Investment Extremely dedicated resources If given a chance to do this again? Explore possibility of e-invoicing Common vendor portal for delivery of invoices Allow communication between Halliburton & suppliers with limited access to SAP © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 17
- 18. What if we had not done this Change? Cost per activity increases Operational Impact Cumbersome retrieval of documents Overworked & unhappy employees No visibility of vendor invoices Increase in resources Frustrated suppliers Misplaced invoices Reminds the era of Box Files, Papers, Snail Mails & Staplers!! © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 18
- 19. Get your priorities RIGHT to ensure suppliers are paid on time Quillix, Filenet, Queue Utility – helps seamless invoice processing for front-end and back-end OCR Technology – Assists in posting of invoices timely and promptly with less resources Workflow – To ensure Non PO invoices are coded and approved timely All of these tools works perfectly with any ERP working environment © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 19
- 20. THE ONE THING THAT MADE THE DIFFERENCE TECHNOLOGY © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 20
- 21. QUESTIONS © 2011 HALLIBURTON. ALL RIGHTS RESERVED. 21