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Self-Service applications to drive cash collection, reduce DSO, and improve efficiencies Avolent and SPG NorCal OAUG Training Days March 7 th, 2005.

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Presentation on theme: "Self-Service applications to drive cash collection, reduce DSO, and improve efficiencies Avolent and SPG NorCal OAUG Training Days March 7 th, 2005."— Presentation transcript:

1 Self-Service applications to drive cash collection, reduce DSO, and improve efficiencies Avolent and SPG NorCal OAUG Training Days March 7 th, 2005

2 Francesco Hidayat – SPG, Executive Vice President of Consulting Services Chris Kenney – Avolent, Global Director of Alliances

3 Overview SPG Who is SPG Tasks and Challenges faced by OA Users Taking a unique approach Avolent Who is Avolent What Finance is really thinking Addressing Finance’s needs Case studies Qualifying the pain Q&A

4 Francesco Hidayat – Executive Vice President of Consulting Services

5 Who is SPG Southern Pacific Group is a Management Consulting firm with offices in Southern and Northern California. Management team alumnus from Accenture, Ernst & Young, and Deloitte Experience in over 80 Oracle implementations Broad expertise in extending your investment in Oracle applications

6 Tasks Financial Business Units are looking to automate the invoice to settlement process: Self-service: reduce costs via enterprise wide and customer instant access to data with Oracle (DSO’s, invoice reprints) Automate manual processes: (payment, reconciliation) Leverage their Oracle Investment: rapidly introduce new services/products that access data within Oracle Greater insight: data from different systems in disparate business units

7 High Processing Costs: $44-$66 per invoice

8 Challenges Oracle Applications professionals are faced with: Self-service: Limited access to data with Oracle modules Automate processes: lack of IT dollars and resources Leverage Oracle Investment: constantly dealing newly with acquired systems and customers Greater insight: can’t integrate data from other vendor and home grown system

9 Taking a unique approach Evaluate an approach that can provide: Self-service: acts as a front end to provide access to invoicing and customer data from Oracle and other systems Automates processes: invoice payment, cash management, reconciliation, disputes, invoice customization, etc. Leveraging Investment: incorporates new customer or systems without upgrading or replacing existing systems Greater insight: pull data from different systems, push out to customers, and foot back billing information to systems for disparate business units

10 ROI Beyond Invoice Presentment Business Benefit Capabilities Presenting Electronic Invoices via . ROI: Reduced Printing Costs. Customer portal with the ability to pay, dispute, match, search, and report. ROI: Reduced support calls, faster cash flow. Ability to automate, consolidate and reconcile among multiple systems. Provide customers with approval workflow, proof of delivery, and A/P ready formats. Analytics, discount management, and cash flow forecasting. ROI: Streamlined financial processes, and proactive control of cash flow. ROI The Basics Interactive Invoicing Cash Flow Control & Insight

11 Chris Kenney – Global Director of Alliances

12 About Avolent E-billing and cash flow optimization software Over $44 billion invoices processed through BizCast Serve companies with large numbers or complex invoices Front-end to Oracle and other ERP, SCM, CRM systems Provides finance dept with greater insight and control into the “invoice to cash” process Reduce costs and streamlines financial processes between company and their customers: Electronic Invoice Presentment & Payment Customer Self-Service Cash Management and forecasting Dynamic Trades terms Management Key Bank

13 Providing value Business Issues Enterprise Planning Systems automate “order-to– invoice” processes, but the “invoice-to-settlement” processes including dispute resolution and payment processing are mostly time and labor intensive. These problems are compounded when multiple billing systems are involved. Focus Managing the financial relationships with your customers by automating “invoice-to-settlement” processes and tying together customer and business financial systems. Business Drivers Accelerate collections, reduce DSO Reduce cost of invoicing Reduce customer support costs, dispute resolution Improve cash flow forecasting Improved customer reporting and analysis Discount management

14 Why Avolent for Oracle Users With Avolent’s BizCast: Oracle customers can incorporate automated financial processes into their global ERP, CRM and self-service strategies Enables Oracle to act as a central solution for all customer interactions You have a front-end solution that integrates Oracle with proprietary and other vendor based systems

15 Extending your Oracle Investment: Invoice & Lower Level Invoice Data Consolidation Cash Management and Allocation from Consolidated Invoice to Desperate Back Office A/R & Billing Platforms B2B Multiple Invoice Distribution ( , Fax, XML) B2B Multiple Invoice Reprint Download Complex B2B Usage Reporting Dynamic Drill-Down into Complex B2B Account Hierarchies Proof-of-Delivery Real-time Integration & Reconciliation Line Item Dispute Management & Note Collaboration Complex B2B Invoice Template Management & Configuration BSP – Multiple Biller Support Integrated Pay-Side Data Analytics (from Supplier Portal)

16 BizCast in your environment

17 Financials A/R Today’s Inefficient and Manual Processes Order mgmt ShippingBilling Account Management Billing & Finance Customer Service Customer Bills Existing IT Systems IT Reports Reconciliation, Payments Inquiries, Disputes Account Inquiry & Status Compounded by:  Confusing customer experience  No clear audit trail of changes  Mess of credits/payments  Large write-offs

18 How Do You Know? Just Look At Your Invoices … Inventory Management Credit Calculation Reconciliation

19 …and your processes. What processes are your customers asking you to do? Custom Reports “How much have I spent on x, y, and z” Search “Help me find the invoice that…” Archives “I need a copy of an old invoice” “I never received an invoice”

20 How eBilling Fits In Customers -Receive -Pay -Dispute/Adjust -Download -Analyze Customer Service -Search -Archive -Adjust -Manage Cash -Allocate -Forecast Subsidiary #1 Billing System Subsidiary #2 Billing System A/R System ERP System eInvoice Embedded Access (Siebel, Remedy, etc.) BizCast: Consolidates all back-end billing systems Creates eBills to be reviewed/paid/disputed Tracks all steps of the invoice-to-cash cycle Direct to A/P Network Printer Service

21 Benefits of Avolent Solution Reduce paper billing and payments costs 60-90% Lower IT maintenance costs 40-80% Reduce costs across a number of business processes Increase overall revenue and profit Improve financial efficiency 10-45% Streamline invoice-to-pay process Eliminate paper & postage costs Eliminate invoice reprints Eliminate rebilling Reduce payment processing costs 30-75% Increase remittance accuracy Eliminate paper & postage costs Eliminate invoice reprints Eliminate rebilling Reduce payment processing costs 30-75% Increase remittance accuracy Eliminate IT-supported customer requests for reports, data downloads, and custom statements Enable shared services for billing, AR Eliminate need for consolidated billing initiatives Eliminate IT-supported customer requests for reports, data downloads, and custom statements Enable shared services for billing, AR Eliminate need for consolidated billing initiatives Billing Payment Cash application Reconciliation Deduction resolution Customer service Billing Payment Cash application Reconciliation Deduction resolution Customer service Handle more new business without adding headcount Improve customer service & related customer sat Deliver consolidated business lines Handle more new business without adding headcount Improve customer service & related customer sat Deliver consolidated business lines Reduce DSO 10-25% Reduce working capital requirements 5-15% Improve cash forecasting accuracy Reduce DSO 10-25% Reduce working capital requirements 5-15% Improve cash forecasting accuracy Streamline reconciliation % Eliminate cash app exceptions Reduce dispute resolution times 20-80% Reduce bill delivery times % Streamline reconciliation % Eliminate cash app exceptions Reduce dispute resolution times 20-80% Reduce bill delivery times %

22 Case Study – F50 Manufacturer/Distributor Overview $40 billion in revenue Over 100 million invoices w/a billion line items annually from 1 million + customers Problems High DSO Decentralized invoice management with disparate systems Costly customer service for reconciliation, invoice reprints and archiving Multiple costly and manual financial processes Solution Reduced DSO to industry lowest Consolidate invoices from multiple systems and foot back payments – saving $5-10 million on replacing or updating IT investment Saved approx. $1 million annually on archiving Provide self-service for dispute resolution, reprint requests, spending analysis, approval and payment

23 Case Example – F200 Manufacturer/Services Problem: Global provider with decentralized invoice management system in 7 regions High volume of invoices, calls about invoices Complex invoices that customers want to customize – 180+ templates High cost of reconciling payments Want to improve “customer lock-in” Solution – EIPP System Eliminate the paper Reduce 180+ templates to 15 Eliminate 30-50% of printing costs Streamline the exchange Allow customers to modify look-and-feel of invoices Downloadable in many formats, reports Eliminate the process Electronic payment, auto-reconciliation

24 Case Study – F1000 Financial Services firm Overview $8.5 billion provider of office equipment Over 10 million invoices per year for leased equipment Write-offs from incorrect invoicing costing several million dollars a year Program Consolidate invoices from multiple ERP systems from disparate business units In a price commoditized industry, reduce back-office costs Provide self-service as a competitive differentiator and to reduce costs Need to accelerate cash flow and reduce Day Sales Outstanding (DSO) Results: Projected DSO savings in first 4 years of $1.6 million Save $5 million by not replacing/upgrading billing systems Projected $9 million dollar savings in write offs in first 4 years

25 Is this right for your needs? Highest ROI occurs when: 2,000+ invoices per month Invoices are complex Invoices are consolidated from multiple back-end systems Lots of invoice processing and administrative costs Poor DSO How to find out – ask your customers first! The Customer Readiness Assessment Survey Results determine ROI Ask the Analysts BizCast #1 EIPP solution – Forrester, Celent

26 Southern Pacific Group Northern California Office 2033 Gateway Place 5 th Floor San Jose, California Contact Information: Mark West, Vice President Office: Mobile:


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