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Sherry Hibbs, VP Sales & Relationship Management BMO Harris Bank Robin Hanselman, Director Sales US West Chrome River Stephen White, Director Corporate.

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Presentation on theme: "Sherry Hibbs, VP Sales & Relationship Management BMO Harris Bank Robin Hanselman, Director Sales US West Chrome River Stephen White, Director Corporate."— Presentation transcript:

1 Sherry Hibbs, VP Sales & Relationship Management BMO Harris Bank Robin Hanselman, Director Sales US West Chrome River Stephen White, Director Corporate Sales Chrome River September, 2014 BRINGING ROI TO YOUR BOTTOM LINE: COMMERCIAL CARD SOLUTIONS & TECHNOLOGY

2 CHROME RIVER EXPENSE MANAGEMENT Agenda Overview Commercial Card Best Practices Sherry Hibbs – Featuring Statistical Information on Payment Solutions Expense Management Technology Best Practices Robin Hanselman & Stephen White – Featuring Technology Solutions Q & A Round Table Sherry Hibbs, Robin Hanselman & Stephen White 1 2 3

3 CHROME RIVER EXPENSE MANAGEMENT Commercial Card Best Practices

4 CHROME RIVER EXPENSE MANAGEMENT Introduction Sherry Hibbs, VP Sales & Relationship Management BMO Harris Bank Over 25 years of Commercial Card industry experience. Professional experience includes senior management Commercial Card positions for card issuers - Citicorp Diners Club, US Bank, JPMC/Bank One and Bank of Oklahoma (BOKF). In addition, professional experience includes working as the VP of Strategic Alliances for WorldTravel Partners/BCD Travel (3rd largest global travel management company) driving strategic payment solution alliances. Strategic selling and management experience in all corporate market segments which includes Fortune 500, large, middle and small market companies.

5 CHROME RIVER EXPENSE MANAGEMENT What are Commercial Payment Solutions Types of Commercial Charge Cards: –MasterCard –Visa –American Express –Discover –Diners Club –JCB E-Payables Event Cards Declining Balance Cards Fleet Cards One Card Solution Travel & Entertainment Cards Purchasing Cards Ghost Accounts Virtual Cards Project Cards Meeting Cards Accounts Payable Cards

6 CHROME RIVER EXPENSE MANAGEMENT U.S. Commercial Card volumes are projected to grow significantly faster than GDP Page 6 *Sources: Glenbrook Commercial Card Sizing, 2012; MasterCard Analysis, % 20% 15% 10% 5% 0% -5% -10% Commercial Card GDP Growth

7 CHROME RIVER EXPENSE MANAGEMENT The untapped Commercial Card opportunity is tremendous in the U.S. and Canada Sources: 1 D&B, 2013; 2 B2B International SME research, 2011; 3 Nilson, 2012 & MasterCard Analysis, 2012; 4 Kaiser Associates, 2012 & MasterCard Analysis, 2013 Total Spend Estimate Cardable Opportunity Carded Volume Only 1.6% of total Middle Market spend is currently captured on card March 19, 2013 Only 1.2% of total Middle Market spend is currently captured on card Canadian Middle Market SegmentU.S. Middle Market Segment $180B 4 $1.0T 4 $11B 4 $7.8T 1 $1.9T 2 $121B 3

8 CHROME RIVER EXPENSE MANAGEMENT Enhanced Spend Analysis – Realign Forms of Payment Source: First Annapolis Consulting / Commercial Card Market Landscape February 2012

9 CHROME RIVER EXPENSE MANAGEMENT Working Capital Management

10 CHROME RIVER EXPENSE MANAGEMENT Travel & Entertainment Card Best Practices Benchmarking Peer Groups Payment Method Analysis Air /Hotel /Car Rental Price Audit Rewards/Rebates Compliance Technology Usage

11 CHROME RIVER EXPENSE MANAGEMENT The Value of P-Card vs. Traditional Purchase Order Process Using a P-Card vs. a traditional Purchase Order process saves almost $74 per transaction Source: RPMG, 2012 $ $ saved $ 17.24

12 CHROME RIVER EXPENSE MANAGEMENT Breakdown of the Value of P-Card vs. Traditional Purchase Order Process Breakdown of Value of P-Card vs. PO Process Using a P-Card generates savings during the sourcing, procurement, and invoice/payment/reconciliation process Source: RPMG, 2012

13 CHROME RIVER EXPENSE MANAGEMENT Strong Card Acceptance Travelers and purchasing agents need strong acceptability to utilize the cards. Acceptance for B to B transactions. Payment Terms and Liability Options Flexible payment and liability options (individual and corporate) Customer Service Dedicated personal representatives tied directly to your account Customer service agents available 24/7 MCC/Supplier Specific Control Features Ability to block and maintain for card usage Support supply management requirements Rewards Points to miles on major airlines Customized reward capability Unlimited redemption options Fraud Coverage Included in cardmember and contractual agreements Travel Accident Insurance Comprehensive insurance to meet Business Travelers needs Insurance that delivers value. Rebate Opportunities Financial considerations that will vary between types of card accounts implemented. Payment terms, annualized charge volume, and rewards participation factors in calculations. Baggage Insurance Insurance that covers checked, carry –on, and delayed baggage ATM Access ATM locations worldwide CDW InsuranceFree Primary Collision Damage Insurance for car rentals Delinquency and late fees Vary by card issuers Airport LoungesFree access to Airport Lounges around the world Client Relationship Management High touch field based service organization What can you expect from your card provider? Card Benefits and Features

14 CHROME RIVER EXPENSE MANAGEMENT MCC Restrictions This feature provides the ability to limit or block Cardholder purchases made by Merchant Category Codes (MCC). This feature has the option of restricting card usage to specific merchant types such as hotels, restaurants or office supplies. Specific Supplier Blocking Ability to limit purchases to specific vendors and locations or block expenditures by specific supplier and location. This feature was developed at the request of corporate clients wanting to maximize arrangements on blanket orders and to allow high value transaction purchasing. Card Controls

15 CHROME RIVER EXPENSE MANAGEMENT Card number and expiry passed through authorization system for accuracy, Card Validation Code (CVC) is passed and evaluated, status of card (open, closed, suspended) and available credit is checked. The authorization will be denied if any of these evaluations fail and merchant may be asked to retain card. Merchant requests Cardholder to provide identification to validate authenticity If authorization successfully passes card validation, authorization system recognizes the commercial card type, and evaluates the transaction against any organization card controls. The authorization will be denied if the transaction evaluation fails any of the pre-set controls. Authorizations undergo sophisticated review for indications of possible fraudulent use. Many fraud systems are a stand-alone platform which receives and stores real-time feed of transactional authorization responses and submits each incoming transactional authorization to a comprehensive evaluation process. Card Validation Card Blocking & Controls Early Fraud Detection Evaluation All attempts to authorize a transaction on a card product pass through four distinct processes: Physical Evaluation Commercial Cards provide significantly less risk than other methods of payment than an organization may have in place today. Protecting Against Fraud & Misuse

16 CHROME RIVER EXPENSE MANAGEMENT Data Enables Efficiency Enhanced data brings significant efficiency to your expense reporting system. 17:00 20:00 11:00 28:00 7:00 8:00 6:00 14:00 76:00 Minutes 35:00 Minutes Overall Savings: 54% Paper BasedElectronic Pre-populated Time for clerical/accounting personnel to reimburse expense report and reconcile payment to bank data Time for clerical employees to process and prepare an expense report for payment Time for supervisors to review an expense report submitted Time for traveler/cardholder to fill out an expense report Source: RPMG 2013

17 CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practices

18 CHROME RIVER EXPENSE MANAGEMENT Introducing Robin Hanselman Director Sales US West Chrome River Robin’s background is in Finance and Accounting where she spent a number of years working as a CPA. After finding out how much easier the right financial programs and technology can make life, she has spent the last 15 years consulting and selling financial technology solutions Technology platforms have included everything from ERP to Investment Accounting and Accounts Payable automation Robin has worked across many different industries and is currently specializing in Professional Services organizations such as accounting, architecture, consulting, engineering, and law firms here at Chrome River

19 CHROME RIVER EXPENSE MANAGEMENT Introducing Stephen White Director Corporate Sales Chrome River Stephen has over ten years in the spend management space. Technology platforms delivered include Concur and Chrome River. Customers such as Celanese, Waste Management, The Staubach Company, Oxea, JC Penney and HQ Global. Stephen was hired by Chrome River in 2012 to help drive Corporate sales growth. He currently resides in Phoenix, AZ yet is ready to get back to his home state of Texas.

20 CHROME RIVER EXPENSE MANAGEMENT Best Practices Technology Differentiators Simple and Intuitive to Use –User-focused design –Completely configurable Business rules engine –Most powerful workflow –Highly flexible policy configurations Ease of Integration –Financial Systems – enterprise data exchg –Billing systems, Payroll, Projects Broad Accounts Payable Automation Platform –EXPENSE, INVOICE, PO, ANALYTICS

21 CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #1: Automate Expense Capture

22 CHROME RIVER EXPENSE MANAGEMENT The Argument Against “Free” A manual expense report costs between $ $51.35 to process An optimally automated expense report is significantly less to process, ranging between $ $7.60 A manual invoice process is between $ $16.67 per invoice An automated invoice is again significantly less ranging between $ $8.32 Partially automated processes provide some cost savings but significantly less than optimally automated processes Source = PayStream Advisors

23 CHROME RIVER EXPENSE MANAGEMENT Automatic Expense Capture - Example

24 CHROME RIVER EXPENSE MANAGEMENT Simplify Receipt Capture Snap and Send

25 CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #2: Have an Accountable Plan

26 CHROME RIVER EXPENSE MANAGEMENT What is it and why is it important? An Accountable Plan is an employee reimbursement allowance arrangement or method for reimbursing employees for business travel expenses that complies with IRS regulations. If you cannot demonstrate that you have an Accountable Plan, expense reimbursements may be considered taxable income and 1099s must be provided to the employees incurring the expenses!

27 CHROME RIVER EXPENSE MANAGEMENT Basics of an Accountable Plan According the IRS: 1.The expense must have a business connection 2.Expenses must be submitted in a timely manner 3.Overpayment of expenses must be returned in a timely manner

28 CHROME RIVER EXPENSE MANAGEMENT Accountable Plan - Further Clarification An advance received within 30 days of the time the expense is incurred Expenses are adequately accounted for within 60 days after they are paid or incurred Excess reimbursements (anything paid over and above the allowable amounts) are returned within 120 days An employee provides an adequate accounting of outstanding advances within 120 days of receiving a periodic statement

29 CHROME RIVER EXPENSE MANAGEMENT Accountable Plan - Further Clarification - Example

30 CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #3: Automate Policy Enforcement

31 CHROME RIVER EXPENSE MANAGEMENT Business Rules Engine  Configurable Expense Policies  Configurable Approval Routing Rules  Configurable Tax Rules, etc.

32 CHROME RIVER EXPENSE MANAGEMENT Example - Built in Compliance Rules

33 CHROME RIVER EXPENSE MANAGEMENT Example - Client Specific Compliance Rules

34 CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #4: Have a Clear Approval Process

35 CHROME RIVER EXPENSE MANAGEMENT Suggestions for Approval Process 1.Consider roles and responsibilities 2.Consider how many levels of approval something truly needs 3.Would some expenses be best suited for Pre-Approvals? 4.Where do you want Finance in the process? 5.Re-think your expense audit practices 6.Let the system do the ‘dirty work’ whenever possible

36 CHROME RIVER EXPENSE MANAGEMENT The Value of Automated Approval Workflow Remember the Business Rules Engine at work? By automating the process, you can now have approvals that are triggered by specific compliance issues. This eliminates the need to audit 100% of 100% A much better use of valuable high-level approvers’ time.

37 CHROME RIVER EXPENSE MANAGEMENT Consider Mobile Approval Methods Approval on the go!

38 CHROME RIVER EXPENSE MANAGEMENT Expense Management Best Practice #5: Go Green - Eliminate Checks

39 CHROME RIVER EXPENSE MANAGEMENT Streamline your Payment Process Direct ACH payments now the norm –Less potential for fraud and duplicate payments –More efficient, less work for A/P For BOTH employee reimbursements and vendors

40 CHROME RIVER EXPENSE MANAGEMENT Other Benefits Cost savings –No more paper checks and manual processes = savings Efficiency More timely payments Enhanced Compliance

41 CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #6: “Leverage your Leverage” Through Analytics and Reporting

42 CHROME RIVER EXPENSE MANAGEMENT Some Key Reporting Metrics #1 Analyzing spend by Expense Category BENEFIT – negotiate preferred relationships with vendors Aggregating expenses associated with Business Development or events BENEFIT - meaningful insight to ROI of these activities

43 CHROME RIVER EXPENSE MANAGEMENT Some Key Reporting Metrics #2 Analyze Expenses by Client or Project BENEFIT – Determines the ROI of a fixed fee project.

44 CHROME RIVER EXPENSE MANAGEMENT Some Key Reporting Metrics #3 KPI’s can be created on Open Approvals or Aging BENEFIT – Remedy bottlenecks in reimbursement cycle time Compliance reporting BENEFIT – Can help spot individuals or groups that are at higher risk for policy violations

45 CHROME RIVER EXPENSE MANAGEMENT Q & A Round Table

46 CHROME RIVER EXPENSE MANAGEMENT THANK YOU! Sherry Hibbs, BMO Diners Club/MasterCard Robin Hanselman, Chrome River Technologies Stephen White, Chrome River Technologies


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