Driving Dramatic Cost Savings by Automating Accounts Payable October 2, 2014 Session ID#: CON7981

Susan Zielinski Introduction IT Manager

The Sherwin-Williams Company ◆ Largest producer of paint & coatings in US, among top 3 worldwide ◆ Founded in 1866, Cleveland, OH ◆ 2016 is 150 th Anniversary ◆ $10.19 billion in sales ◆ Business in 120+ countries ◆ 34,000+ employees ◆ 4,000+ company owned stores ◆ 90+ manufacturing facilities globally

The Sherwin-Williams Company

SW Invoicing ◆ Original Process – AP utilized Readsoft and 3 Lotus Notes Databases to process paper invoices ◆ Initial production launch May 2011 – Goal: streamline invoice processing and convert to a paperless process – 3 process flows  eExpense Purchase Order (PO) processing  User id PO processing  Raw material (AOM & QAD) PO processing – Volume 10,000 invoices / month

SW Invoicing Process Flow

OFR Verifiers ◆ September 2011, opened office in Kuala Lumpur (KL), Malaysia ◆ Staffing: US – 3 resources; KL – 13 resources ◆ Additional growth expected in KL as more tasks are assigned ◆ KL team spends 45% of their time in OFR Verifier

SW Invoicing – 3-Way Match ◆ OFR 3-Way Match on PS6 launched August 2014 – Match against purchase order, invoice, and receipt – Goal: eliminate need for Accounts Payables (AP) processors to key purchasing invoices into Oracle AP  Redeploy AP resources to work on more value added activities – Benefits: reduce keystroke errors and improve invoice Days Payable Outstanding (DPO) – Enabled OFR line pairing – Volume for 2014: 43,000 indirect, non-PO invoices plus 38,000 raw material/finished good invoices

SW Invoicing – 3-Way Match ◆ OFR 3-Way Match Cost Savings – No reduction in personnel anticipated  Focus has shifted from data entry to hold report analysis and system analysis – Onboard Inventory Orgs without adding headcount  In the last month, managed increased inventory locations via acquisition – 3 manufacturing facilities, 2 distribution centers, and expanded HQ purchases related to 300 facilities – Added 7,000 invoices (17,000 invoices / month cumulative)

SW Invoicing - Benefits ◆ Business – Improve internal controls – Improve invoice DPO – Reduce keystroke errors – Ability to change variables at runtime with SOA Composer ◆ IT – Ability to leverage Out of the Box (OOTB) user interface (worklist) – Ability to leverage OOTB monitoring, troubleshooting, and reporting tools (Enterprise Manager (EM), BAM) – Increase development efficiencies through BPM Studio and JDeveloper – Integration between Oracle product suite

SW Invoicing – 2015 Initiatives ◆ Rollout to Brazil – June – Language considerations end to end – Multi-currency and tax – Add 1,000 invoices (18,000 invoices / month cumulative) ◆ Stores Merchandise Management System (MMS) Migration – MMS is old mainframe software and difficult to find new talent who knows the technology – Goal: improve data performance – Add 9,000 invoices (27,000 invoices / month cumulative)

SW Invoicing – Future Initiatives ◆ Rollout to Rest of World – Latin America, Canada, Asia, Europe – Invoice workflow is manual – Electronic approval will improve internal controls – Allow transition from manual invoice entry to electronic import into Oracle AP

SW Invoicing - Challenges ◆ Internal – Small development team with complex product suite – Ability to design and scale a custom solution – Global scope coverage ◆ Oracle Product – Upgrades – Performance – OOTB end to end reconciliation