Business Intelligence for Global Accounts Payable in Procter & Gamble

Brian BenningsGlobal Accounts Payable Product GroupSAP Business Warehouse Project Manager

• Who We Are• Objective of Business Intelligence/Reporting• Scope• Customers• Techniques• Key Factors to implementation• Questions

Agenda

Net Sales FY2002 - $40 billion

Over 300 consumer productssold in 160+ countries

100,000+ employees in 80+countries

Procter & Gamble

Billion $ Brands

Procter & Gamble

Objective

Objective of Business Intelligence Reporting is to provide…

The right information

To the right people

At the right time

At the lowest cost possible

Right Information - Scope

Within the Global Accounts Payable group, we have two primary types of reports

• Financial data Spend by Vendor Credit tracking GR/IR Reconciliation Discount analysis Tax Reporting

• Performance data Payment on Time Milestone tracking Productivity

Scope - continued

… for invoices processed for operations• in 52 countries • using 38 different system/clients

SAP R/3 v4.5b SAP R/3 v3.0f SAP R/2 Dun & Bradstreet mainframe

• 4 Million invoices per year• 554 people within the AP Organization globally

In order for the reporting capability to be robust enough to run the business, we needed the ability to consolidate reporting for all of these platforms.

Right People - Customers

This information is intended for several types of customers

• AP organization interested in running the day to day operations and improving efficiency

• Other internal groups such as purchasing, budget owners, plant financial managers, etc…

• External Vendors interested in the status of open invoices and invoice history as well as what information is needed to include on invoices for Procter & Gamble

Right Time - Technique

Depending upon the type of information as well as the type of customer, we either

• “push” the information electronically to the individual or group when action is required

• provide a user friendly method to “pull” the necessary information when needed.

“Push” Technique

Throughout the lifecycle of an invoice, there are multiple times when action is required by people outside of the AP Organization.

• automatically generated email messages explains “what” is required (invoice approval, blocked invoice resolution, service entry) explains “how” to take action often includes links to the invoice image and to mySAP Workplace where action can be taken

• automatic weekly reminders (Email Dunning) when action has not been taken

Benefits of Email Dunning

• Enabler for timely vendor payments• Automated reminder notification at the time of the outage • Automated follow-up with the individual for aged items• Provide management with analysis tools• Identify training needs

Impact so far…•50% Reduction in volume & cycle time for MM blocks•33% Reduction in cycle time for FI Approvals•33% Reduction in cycle time for Service Entries

“Pull” Technique

For reports where we enable the customer to “pull” the information when needed we have chosen to use the web as the common platform used to access much of this information.

For internal customers, both in and out of AP, we have made the strategic decision to use SAP Business Information Warehouse (BW) as the tool to provide consolidated reporting across all of our systems.

What is Business Warehouse ?

• SAP BW is an actual database where the consolidated data is stored from all of our systems (4.5b, 3.0f, R2, and non-SAP systems).

• It stores the data in a structured manner to enable complex reporting.

• We can use a combination of SAP delivered and customized extraction rules to collect the information we want to report against.

• BW data/reports can be accessed via the web.

BW Implementation Timeline

Current Reporting Capability

• Analyze POT % based upon the total # of invoices, $ on invoices, and # of line items• Analyze how often we earn available discounts based upon payment terms• Analyze the frequency and duration that invoices hit certain milestones / exceptions and if they were inside the defined Service Level Agreement

ScanningVendor master updates requiredFI ApprovalsService EntriesBlocked Invoice resolution

• Evaluate how often we have to return invoices to vendors and to which vendors

Milestone Analysis

Milestone Analysis

Milestone Analysis

Milestone Analysis

Reporting Capability- continued

Within each of the reports, we have the ability to do the following:

• Filter & Group the results by 17 different characteristics and navigational attributes including Region, Country, Plant, Vendor, P&G Business Unit (product group), Invoice Type (MM, FI, Electronic, Settlement), Invoice Processor, Approver/Buyer, Payment Terms, and Originating System

• Download the data to excel for further analysis with a single mouse click

• Combine invoice activity across systems including legacy systems into a single consolidated report

• Analyze trends over time

• Save report criteria and layout to your browser favorites

Report Output example

Future Enhancements…

• Legacy system data repository to meet tax/legal needs as well for internal reporting• Duplicate payments• Vendor cleanup (no activity in 18 months)• Balance Sheet Reconciliation• GRIR write off authorization• Productivity• Daily Management System (daily look at open items at various stages and trends)

Benefits

• Provides data on demand• Builds Capability, not just capacity• Provides one-stop-shopping for AP reporting against both SAP and non-SAP data • Requires minimal user training• Provides an efficient way to report against consolidated data, enabling complex reporting over the web with the ability to download the data to excel for customized analysis• Utilizes standard functionality, decreasing the amount of time and money associated with implementing a data warehouse

Impact so far…• 10% Increase in Payment on Time percentage• reduced number of “early” payments to the vendor• significant decrease in the amount of time and effort associated with collecting and reporting this information to management

Reporting - External Customers

For external vendors, we provide two solutions for information sharing, both over the web…

• Supplier PortalSecure site requiring id and password

• pgsupplier.comPublic web site

Supplier Portal

This secure site allows external vendors to log in and check the status of their invoices.

• reduces the volume of calls to the call center• improves vendor relationship

Status of the implementation• went live in Oct 2002• currently have 3000 strategic supplier with access to the site with a target of 5000 by July

pgsupplier.com

This public site allows external vendors to look up information related to “how” to invoice Procter & Gamble

• to what address should invoices be sent• what information is required on an invoice• who should I contact if I have questions

Status of the implementation• went live in April, 2003• averages 500 visitors per day• goal is to decrease the number of invoices returned to the vendor by 50%

Key Factors to Implementation

• Know your processes and the data in your systems• Establish controls over those processes to standardize them and capture information about how well you follow these processes• Standardize master data !!!• Know your customers and what they need• Utilize developers who know the technology and how it can be configured to best suit your specific needs

Summary

We hope you agree that the functionality that we continue to develop in the area of Business Intelligence for both our internal and external customers has enabledProcter & Gamble Global Accounts Payable to deliver best-in-class reporting capability.

??Any Questions?

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Session Code: 4211