More Related Content Similar to Global eInvoicing – Success Through Breakthrough Supplier Enablement (20) Global eInvoicing – Success Through Breakthrough Supplier Enablement1. Global E-Invoicing - Success through
Breakthrough Supplier Enablement and
Change Management Strategies
Boris Boeckem
Head of NORCEE Procurement Bus. Development & Support, AXA
boris.boeckem@axa.de
+49 221 148 24381
© 2013 Ariba, Inc. All rights reserved.
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Agenda
• AXA Company Background
• e-Invoicing in European Environment
• AXA e-Invoicing Challenges and Strategy
• Supplier Enablement and Change Management
• Lessons Learned and Next Steps
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The Changing Focus of Procurement
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Prices &
Terms
Cost
Sourcing &
Ordering
Value
Spend
Management
time
Spend
Intelligence
Transaction
Management
Negotiations Sourcing
&
Contracting
Risk
Management
Supplier
Management
Analysis
Category
Management
Expense Control
Visualisation
Prediction
Alternatives
Performance
Management
Planning-to-Settle
Process
Process Automation
Reliable technical and organisational
support of the Procure-to-Pay Process
8. #AribaLIVE
Procurement @ AXA / Focus & Impact
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Analy
sis
Request RFx
Suppli
er
Selecti
on
Appro
val
Contr
act
Define P.O
Paym
ent
/
cash-
out
Invoice
treatment
Item
Receipt
Follow
up
get
early
involved
do it
in a
professional manner [*]
do it
in a very
efficient manner
*
increase
coverage
increase
savings
reduce
cost
homogenous approach & standardized procedures
Quality of Service & Customer Satisfaction
Budget
Plan Procure P2P
9. #AribaLIVE
Agenda
• AXA Company Background
• e-Invoicing in European Environment
• AXA e-Invoicing Challenges and Strategy
• Supplier Enablement and Change Management
• Lessons Learned and Next Steps
© 2013 Ariba, Inc. All rights reserved.
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10. #AribaLIVE
Europe‘s Changing eInvoice
Environment
• European Commission...requires Member States, as
of 1 January 2013, to adhere to the principle of equal
treatment between paper and e-invoices.
Council Directive 2006/112/EC on the common system of value added tax [2] ....
• Single Euro Payment Area (SEPA) European e-
invoicing initiative: Estimated savings of
EUR 64,5 billion per year for businesses.
10 Source:
13. #AribaLIVE
TAX Regulation
German example (§14 UStG)
13
Invoice (Paper + Digital)
calls for
Archiving
Paper Data
Integrity Authenticity
Internal Control Procedure
Paper Digital
• electronic transfer of Invoices needs the agreement of the Bill-to Party
• informal agreement or tacit approval is sufficient
• agreement can be included in contracts
14. #AribaLIVE
Integrity, Authenticity and Internal
Control Procedure – what´s behind?
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• „Procedure which is used by the Bill-to Party to compare
the Invoice with the liability to pay.“
• Key Question:
Is the Invoice equal to the good or service provided?
correct good or service
correct good or service provider
correct amount invoiced
correct recipient of payment
• Checks can be done based on Contracts, Business
Letters, Purchase Orders, Delivery note, etc.
• Company is free/flexible in individual definition of checks
• Internal Control Procedure doesn´t have to be based on digital
signatures or on other technical procedures
15. #AribaLIVE
Agenda
• AXA Company Background
• e-Invoicing in European Environment
• AXA e-Invoicing Challenges and Strategy
• Supplier Enablement and Change Management
• Lessons Learned and Next Steps
© 2013 Ariba, Inc. All rights reserved.
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16. #AribaLIVE
AXA e-Invoicing
Strategy and Message
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Key Questions:
• Which Business (non critical items) is qualified for e-Invoicing?
• How to determine Suppliers for e-Invoicing?
• Definition of Priorities / Waves / Timelines
• What Stakeholders to involve (internal Customer, Buyers, etc.)
Key Messages to Suppliers:
• eInvoicing is a win-win!
• Large Suppliers can use full automation/Back-End Integration
• Small/mid-size Suppliers can achieve a high degree of automation
(ePO PO-flip eInv)
• Invoice status is traceable at any time
• It‘s not only usable for the relationship with AXA
• It‘s not always for free (Ariba Network fee)
17. #AribaLIVE
AXA e-Invoicing Deployment
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• Ariba Invoice in place since July 2010
• Target:
50% e-Invoicing rate by end of 2012 and 60% by end of 2013
• 1st
Phase: former ERS Supplier
• 2nd
Phase: all Supplier with more than 10 invoices per year
• 3rd
Phase: Supplier in Ariba Contract Compliance
• One person (for Germany and Switzerland) in charge of preparation of
Supplier enablement
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e-Invoicing@AXA.de
Challenges
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• Follow all Tax and Legal Rules now compliance is enabled!
• Convince internal Audit, TAX and Legal Dpt. to approve electronic Invoicing
• Involve Buyers in the enablement process and train them on the
e-Invoicing approach
• First steps in „real usage“
get familiar with the AN
learn from issues and questions from pilot suppliers
• Convice Suppliers to move to e-Invoicing
• Convince Suppliers to use AN for e-Invoicing
AN Awareness (Ariba and AN not always known in Germany)
integration in internal processes
easy to use
win-win situation and business case
Small Supplier issues with technical Implementation
overcome „fears“ on supplier side
19. #AribaLIVE
AXA e-Invoicing Journey
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19
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 .....
e-Purchase Order e-Invoice
Paper-based Processes
50%
SAP
Phone
Letter
e-Mail
ERS
Scan/
OCR
Workflow
P2P
Responsibility
e-Invoicing
Ariba
Invoice
Supplier
Enablement
Ariba
Buyer
Ariba
Contract C.
Supplier
Portal
Electronic Processes
Contract
Mgmt.
Compliance
Transparency
20. #AribaLIVE
Agenda
• AXA Company Background
• e-Invoicing in European Environment
• AXA e-Invoicing Challenges and Strategy
• Supplier Enablement and Change Management
• Lessons Learned and Next Steps
© 2013 Ariba, Inc. All rights reserved.
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21. #AribaLIVE
Supplier Enablement@AXA
• Emails
Individualized
Templatized
• Supplier Handbook
Specific to process
Detailed How-To Information
• Online Informational Portal
Links to Tutorials
Technical documentation
Process information
Contacts
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22. #AribaLIVE
Change Management/Communication
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Supplier
AXA Support Team
• Individual Mail „Welcome Letter“
• „Some“ technical and individual Support
• Guide / Handbook customized for AXA
• Supplier Information portal (Access from AN) with
relevant Links, Information and Contact Details
• Web-Based-Training Material
AXA Professional Buyer (Sourcing)
• During SRM activities
• Included in Sourcing Events
• During Negotiations
• Individual Support
• Follow-up, Reminder, Eskalation
Ariba
• Standard Communication
• Detailed technical Support by Ariba Support Team
• General information material
23. #AribaLIVE
Agenda
• AXA Company Background
• e-Invoicing in European Environment
• AXA e-Invoicing Challenges and Strategy
• Supplier Enablement and Change Management
• Lessons Learned and Next Steps
© 2013 Ariba, Inc. All rights reserved.
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24. #AribaLIVE
Lessons learned
• e-Invoicing in Europe is much easier since 2013
• SEPA can increase benefits of e-Invoicing for multi-country companies
• Technical Implementation is easier than Stakeholder Convincing
• Best Practice: Full P2P process under one owner
• Change Management is KEY internal Clients and Supplier
• Provide support to Suppliers!
• Identify right Supplier partner
• Leverage Ariba supplier enablement support
• KPI: less than five days average processing time for e-Invoices
• Conclusion:
e-Invoicing brings benefits to all Stakeholders, if all relevant groups are involved
at the right time
© 2013 Ariba, Inc. All rights reserved.
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25. #AribaLIVE
Next Steps
• Extend e-Invoicing scope (Target: 75 – 80% of relevant
invoices)
• Enable Dynamic Discounting to show further benefits for the
suppliers and for AXA
• Provide Supplier Portal as a hub for Communication, Data
Exchange, E-Sourcing Events, Information Material, etc.
• ...
© 2013 Ariba, Inc. All rights reserved.
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26. E-Invoicing in Europe - Success through
Breakthrough Supplier Enablement and
Change- management Strategies
Washington - May 2013
Boris Böckem, C.P.M.
boris.boeckem@axa.de
+49 221 148 24381
28. #AribaLIVE
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