About Your Presenter Larry Brang, CPA, APM Director, Commercial Services – Americas, Merck & Company, Inc. Larry leads the Charlotte Commercial Services Team, with responsibility for providing centralized transactional processing services in the areas of Procure-to-Pay, Record-to- Report, and the Billing and Accounts Receivable components of Order-to-Cash. The countries serviced are the U.S., Canada, Puerto Rico and Mexico. The Procure-to-Pay team located in Mexico, also reports to Larry. Previously, Larry led the legacy Schering-Plough Financial Shared Services Center in Memphis. Larry was responsible for providing back-office financial services support (procure-to-pay and close-to-report) in a cost-effective and compliant manner. Major initiatives in this role included: Leveraging the U.S. shared service capability to effectively and efficiently integrate recent acquisitions; implementing an e-invoicing strategy to eliminate 60% of paper invoices in a six-month period; leading a multi-year initiative to transform the procure-to-pay process in the U.S., with the objective of achieving significant cost savings through procurement strategies, policy changes and process efficiencies; and participating as a subject matter expert on a global process harmonization effort to standardize and streamline procure-to-pay processes across functions and geographies, resulting in a preliminary design to be used for blueprinting a global ERP initiative. Prior to this role, Larry was director, North American Shared Services, for Pfizer. Larry holds a B.S. degree in Business Administration from LaSalle University in Pennsylvania.
Today’s Merck Merck is a global healthcare leader working to help the world “be well.” We provide innovative medicines, vaccines, biologic therapies and consumer and animal health products to help improve health and well-being. We work with customers in 140 countries to deliver broad-based healthcare solutions. We demonstrate our commitment to increasing access to healthcare through far-reaching policies, programs and partnerships to help people around the world lead healthier lives.
A Quick Look at Merck Second largest pharma company $46B in sales* 91,000 employees** * Combined Legacy Merck and Schering-Plough revenue as of December 31, 2010 ** As of June 30, 2011
Merck’s Organizational Structure Organized into strategic divisions and global support functions (GSFs) Centralized GSFs in 2006 to improve accountability and reduce cost structure Strategic division and GSF leaders are members of the Executive Committee Standardizing business processes, data and information systems globally Global Services Finance Legal Human Resources Strategy Research Laboratories Supply & Manufacturing Global Human Health Consumer Care Animal Health
How do we define “Ask PtP”? An innovative approach to customer service using social media to provide a 24/7 multi-user, interactive service channel that includes a self-building repository of knowledge and can be leveraged enterprise-wide at no additional cost.
Introduction to “Ask PtP” Service Channel PtP stands for “Procure-To-Pay” which is Merck’s Shared Services organization responsible for the processing of transactions from time of order to payment for merchandise/services rendered In April 2010 Merck launched the SAP platform for US markets During the 90-day post-launch “hypercare” phase, a series of Q&A calls, hosted by the PtP Charlotte Merck team, were implemented to assist end users with the transition Once “hypercare” was completed, the need was identified to continue this service offering for Merck employees A weekly “Ask PtP” call was established in October 2010 for US employees and hosted by representation from the Charlotte Merck PtP team In December 2010, the next phase of “Ask PtP” support was implemented with the launch of the “Ask PtP” Community Board for the US market to provide on-line customer service support
What is the “Ask PtP Community Board”? “Ask PtP” Community Board launched December 1, 2010 A social media-based service channel that is available 24/7 for each Procure-to-Pay Workstream with an additional “General Discussion” and “Site Feedback” board for continuous improvement Tier II Analysts are assigned, as part of their current role/responsibility, to monitor and respond to postings within the board that corresponds to their respective Workstream Non-English language support is provided for Puerto Rico/Mexico (Spanish) and Canada (French) Provides an alternative service channel for employees to ask a PtP-related question outside of the hours of operation of the PtP Support Desk or weekly “Ask PtP” call SLA for each response is same-business day from time of posting Alerts are sent immediately to notify Analyst of a posting to their assigned board A daily summary of all postings is sent to the Site Steward Anyone within Merck can join the community to utilize posting functionality All “Ask PtP” call attendees are sent an invitation to join immediately following each weekly session FAQ and key Procure-to-Pay related reference documents are posted on the site for use by members Upcoming events, training requirements and announcements are posted as a method of communication with Merck employees from the PtP team
“Ask PtP” Community Strategy Enhance the overall PtP experience for our Merck employee base with the goal of consistently exceeding their expectations for world-class customer service support Offer an additional 24/7 menu option for support via a structured, consistent venue for live person-to-person knowledge sharing that was not previously available Provide variety in daily responsibilities for an Analyst with the opportunity for customer-facing interaction aside from primary transactional role Use of current staff adds no additional resource costs to the program Achieve annualized cost savings and increased end-user productivity due to call volume reduction into PtP Support Desk
Globalization and Cross-Functional Benefits Support for North America markets with bi-lingual coverage (Spanish and French) Expansion into Asian markets with the launch of “Ask PtP Asia-Pacific” and European markets with “Ask PtP EMEA” Support and management of these community boards would be owned by Stewards located locally within one of the primary markets/countries Leverage best practices with Human Resources partners via launch of “Ask HtR” calls and Community Board earlier in 2011 Sensitivity of HR information strict monitoring of board by HtR Steward and proactive messaging on the homepage to prevent the posting of private and/or confidential information Discussions with Information Technology and Travel divisions for potential launch of “Ask IT” and “Ask Travel” initiatives mirroring the “Ask PtP” structure
Introductions Located within Merck’s Shared Service Center (Charlotte, NC) Responsible for operational and quality performance for both Supplier and Employee PtP Support Desks Oversees a team of Tier II Customer Service Analysts supporting escalated Accounts Payable, Order Management and Employee Expense inquiries Managing Steward of Merck’s “Ask PtP” initiative
18 Instant Alert to Analyst for Response (sample)
Usage Trending - Ask PtP Community Board (through March 1, 2012) 1,000+ active members (Merck/LSP employees) 400+ new posts with 950+ replies since 12/2010 Average response time is < 30 minutes 11 Analysts within Merck’s Charlotte Shared Service Center monitor board for Merck and LSP inquiries as part of current role 65% of posted questions regarding Purchasing and Order Management or Expense Report Management
Summary Utilizing a social networking site as a service channel offers an innovative approach to internal customer support at no additional cost. The ability to establish one consolidated venue for questions as well as reference materials/FAQs simplifies the user experience and combines a “virtual support desk” model with a employee self-service offering. Standardization capabilities allow for a consistent multi-user experience that can be replicated enterprise-wide and include language support as well as other globalization options.