how to find your real project roi session 5. slide 2 ©2010 financial operations networks llc about...

How to Find Your Real Project ROI

Session 5

©2010 Financial Operations Networks LLC

About the Speaker

Wendy is the Accounts Payable Manager and Purchasing Card Administrator for Moen Incorporated. In her current position, which she has held for 19 years, Wendy oversees the payment of more than 80,000 invoices annually, totaling more than $550m! During her 35 years at Moen she has held a variety of positions including customer service and cost accounting. She was on the SAP implementation team in 2000 and continues as a SAP power user. She also led the effort that successfully consolidated Accounts Payable in 2004. Wendy holds a degree in Accounting and is certified as an Accredited Payables Manager.

Wendy Cambarare, APMAccounts Payable ManagerMoen Incorporated


An Accounts Payable Story:Moen & OnBase

Wendy CambarareAccounts Payable Manager, Moen Incorporated

Rachel Gilmore Marketing Program Manager, Hyland Software


About OnBase

Hyland Software:• Software technology firm

established in 1991

• Privately-held

• 850+ Employees

• OnBase Enterprise Content Management (ECM) solution

• More than 9,000 customers


About Moen

• Manufacturer of faucets, sinks and accessories for the bath, kitchen, outdoor and more

• Headquarters in Cleveland, Ohio

• Products are sold internationally

Moen Incorporated


Moen Brands

http://www.moen.com/about-moen/brands/donner

http://www.moen.com/about-moen/brands/moen

http://www.moen.com/commercial/_/N-699?catalog=COMMERCIAL

http://www.moen.com/about-moen/brands/home-care

http://www.cfgonline.com/

http://showhouse.moen.com/


Moen and a Document Management Solution

• Driven by I.T. in 2003 – Using Documentum for Customer Service

• Documentum was purchased and our implementation team had been terminated

• Required dedicated in-house support• In order to acquire additional functionality, it would require a

significant additional capital investment


Moen and a Document Management Solution (Cont’d.)

• Other scanning software― Only SAP compatible

• I.T. wanted ability to interface with systems outside of SAP

― Based on legacy technology – no open system interface• More expensive than Documentum


Why Accounts Payable?

• Document management solution project manager was the Director of Financial, HR & Business Reporting. Business initiative was to consolidate A/P functions from 3 locations to 1.

• Collaboration between project manager and Corporate Controller brought about Moen’s decision to make A/P the OnBase guinea pig.


Why OnBase?

• Simple integration with Microsoft products

• Technology & approach to support applications more user friendly

• SAP screens tie to OnBase for ease of search― Continually enhancing― WEB-based access― Imaging not a Moen competency― Instead of $5K SAP licenses for each user, 6 licenses

for imaging and indexing and a concurrent license that supports 1,000 users


Business Case for Solution

• 350 problem invoices/month – rework cost $15 (per A/P Institute)

• Lost discounts – $1,600/month

• Retrieval & filing – 12 hours/month x 6 associates

• Inability to process invoices from other facilities/countries without receipt of paper copies

Average process time per invoice 7 minutes @ cost of $1.90/invoice


IT’S ALWAYS YOUR FAULT!


• Potential Monthly Savings ― $8,020 per month

• Return On Investment (ROI) ― Cost of capital/potential monthly savings

• 14.5 months• At 80% of productivity – 18 months


Before OnBase


Moen’s Accounts Payable Department

• Processing approximately 82K invoices/year

• 8 associates

• 3 locations – 1 in Ohio and 2 in North Carolina

• Invoices distributed by the last 2 digits of the purchase order number

• Piles of invoices – hope the supplier doesn’t call

• Keyed, stamped and filed


Problem Invoices

• Make a copy & attach to the brightest paper we could find

• Send out for resolution

• Attempted tracking using Excel

• Average return time 20 days


Implementation• December 2003 – Hyland consultant @ Moen

― Initially had resistance from A/P associates – concern about not taking their needs into account & difficulty of use• Headquarter’s A/P staff spent ½ day with consultant outlining

current practices & future wants

• January 2004 – Proposed plan― Reviewed proposed implementation plan and presented

documentation to A/P

• March 2004 – Roll out― Sent out documentation to users outside of A/P in advance

• End users concern – retrieval of information

― Consultant stayed with A/P on first day


Integration

• Scanning format― Created multiple scan queues & queues within

those queues• Standard Invoices

– Standard– Foreign– ACH– Check Request– Utilities

• Back Files• Vendor Master Adds & changes• Journal Vouchers• Wires – payment documentation

― All rolls into one scan queue for document retrieval


Integration (Cont’d.)


• Determine what fields you want to have as search options - keywords

• Scanning opportunities― Within the scanning queues, configuration allows

equitable distribution of workload• Queues can be distributed based on percentage or specific

queue can be directed to one associate or multiple associates

― Manager or other designated personnel can view what is in each queue @ any time and workload can be redistributed as needed as well as a history of each specific document

― Invoice backlog can be determined immediately



• Automated indexing― SAP input copied directly into OnBase

• Eliminates duplicate data entry• Dual screens• Created dollar value double-check

• SAP/OnBase― Allows users outside of A/P to access the document

image through the web directly from the vendor history screen in SAP without going to an OnBase link



• Workflow― Created E-form to replicate paper resolution form

• Requires partial indexing to locate document prior to processing

• Addresses based on email address within the company– Any location with a moen.com extension

• Expiration date reminders• Allows for notes from A/P and also from the recipient• Excellent tracking mechanism & controls

– Why isn’t it processed?– Where is it?– Who has it?– How long has it been there?



Results

• Process improvements― Reduced average month-end backlog from 1,400

invoices in 2003 to 175 currently― Time savings – no digging & no filing!― Paper documents are destroyed after 3 weeks


• Canada and Mexico facilities have implemented OnBase― Their data is uploaded nightly to our server― The invoices for Moen Mexico are directed to queues

@ Moen HQ and are processed

• Visibility― 300+ users access through SAP or web― Problems are partially indexed

Results (Cont’d.)


Departments That Use OnBase

• Accounts Payable

• Accounts Receivable

• Human Resources

• Payroll

• Customer Service

• Consumer Services

• Transportation

• Distribution Centers


2010 and beyond

• Upgrade to most current OnBase version

• Integration of emailed invoices directly to OnBase with a dedicated server


Questions

If you have further questions, please e-mail them to

[email protected]

To ask a question, please press *1on your phone or submit your question

using the chat function within the Webinar interface.

Thank You!

The Accounts Payable Network2100 RiverEdge Parkway, Suite 380Atlanta, GA 30328Contact: [email protected] 770-984-1184www.TAPN.com

For further information on this topic, contact

how to find your real project roi session 5. slide 2 ©2010 financial operations networks llc about...

Documents

director of financial

documentum slide

moen incorporatedslide

moen competencyinstead

hyland software slide

accounts payable story

consolidated accounts

onbase hyland software