global automation domination: how do you roll out one workflow solution across 20 countries?
TRANSCRIPT
Global automation domination:How do you roll out one workflow solution across 20 countries?
The Accounts Payable Tech SummitLondon, UK6th December 2011
By Urs Gräffker, Project Manager at IKEA
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Agenda
IKEA in briefP2P preconditionsDarwin projectDarwin solutionBiggest challengesWhere we are todayKey lessons learned
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IKEA – for the many people
OUR VISIONTo create a better everyday life for the many people
OUR BUSINESS IDEATo offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them
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125 stores in 15 countries (1996)280 stores in 26 countries (2010)
143 million store visits (1996)
626 million store visits (2010)
2,400 suppliers of commercial goods (1996)
1,000 suppliers of commercial goods (2010)
IKEA is set for growth
Some facts on the P2P status quo
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ProcurementGlobal deals sourced from global purchase organisation in SwedenLarge national deals handled by national purchasersThe rest: locallyProcurement tool: iShop –implemented world wideNumber of suppliers: ?
Two Finance BSC‘s(Business Service Centres)
1.Shanghai for Asia Pacific and North America
2.Poznan for Europe
~ 1.5 millioninvoices for indirect material and
services per year
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How have we handled invoices for indirect material and services?
TODAY
In many countries manual handling of indirect material and service invoices
A time consuming and costly adminstrative process
Little control and transparency, due to manual handling
Different working routines and applications for invoice handling
In many countries manual handling of indirect material and service invoices
A time consuming and costly adminstrative process
Little control and transparency, due to manual handling
Different working routines and applications for invoice handling
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TODAY
TOMORROW
Where do we want to be?
System supported and partly automated invoice handling
Increased efficiency in total, and less time spent in local accounting departments
Enhanced control and compliance, as well as increased transparency and quality throughout the P2P process
One way of handling indirect material and service invoices in IKEA
The Darwin project was born with two siblings
Increase number of electronic purchase orders and goods receipts
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DARWIN project
IPi project
Business Service Centre transition
One common electronic workflow for invoice control and posting
Centralise remaining transactional work in shared service centers
The Darwin project in brief
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HISTORY & FACTS
Pilot implementations in spring 2010 in Italy, UK and Ireland
Rollout project started in September 2010
Ambition: Darwin implemented in all countries by April 2013
Project orderer: P2P process owner
PROJECT IDEA
The Darwin rollout project
contributes to a higher cost efficiency in IKEA’s P2P process and
opens up the possibility to concentrate the handling of invoices for indirect material and services in regional business service centres
by implementing the Darwin solution in 23 IKEA group countries
We are on the way
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Darwin implemented
To be rolled out
Out of scope
Current rollout
The Darwin solution in a nutshell
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iShop
PurchaseOrder
Goods Receipt
Scanning provider
Scanned and verified Invoice
Automatic Matching
Accountant
• Add Tax Master Code
• Perform validation Check
• Transfer to accounting
BookingPayment
BaswareSuccessful
Match
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Invoice imported from scanning= fields completed from scanning provider
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Master View in Basware
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ThinClient view in Basware
The biggest challenges – and how we try to overcome them 1/2
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RESISTANCE TO CHANGECountries like their way of working – why would they want to change?
• Show benefits• Work on concerns• Clarify it‘s mandatory• Deliver good examples with successful rollouts
SYSTEM INTEGRATIONFrictions in overall P2P system setup – interfaces and databases
• Implement workarounds• Fix integration issues• Accept issues for the time being
SPECIAL NEEDSMany countries request special functionalities, e.g. based on legal demands
• Identify what requests are really business critical• If certain flows only – handle manually outside
Darwin• Implement workarounds• Change the system solution
CHALLENGES ACTIONS
The biggest challenges – and how we try to overcome them 2/2
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BSC TRANSITIONDarwin go live = transition of transactional work into Business Service Centre
• Set up a common steering• Agree on common timeline• Co-ordinate the rollout work• Work on content dependencies
AUTOMATIC MATCHINGMatching rates below expectations in rollouts so far
• Focus more on setting up „contracts“ in Basware• Increase number of electronic purchase orders
and goods receipts• Include additional flows in purchasing tool• Be patient - work continuously on increasing the
rate – after rollout project is closed
CHALLENGES ACTIONS
Where are we today?
Darwin up and running in eight countriesOne legacy invoice handling system closedLow rates of automatic matchingCore solution is stableEnd users are satisfied with functionality and usability of BaswareRemaining transactional work handled in business service centres in Poznan and ShanghaiEfficiency increase not measured yet
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Key lessons learned
Difficult to solve issues while running –don‘t start without the right prerequisites (e.g. system integration)
If two changes in one, set it up as one (system rollout + BSC transition)
Don‘t underestimate the need for proper change management
Big changes take time (e.g. automatic matching, BSC transition)
A good solution is what counts long term
We become better with every country rollout!
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12/19/201119
“Most things stillremain to be done.A glorious future!”
INGVAR KAMPRADFounder of IKEA.
©In
ter IKEA S
ystems B
.V. 2
011
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Home is the most important place in the world
©In
ter IKEA S
ystems B
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007