CAST Corporate Action for STandards ''How to optimise working capital reduce operating costs improve

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CAST Corporate Action for
STandards ..How to optimise
working capital reduce
operating costs improve quality of
service and security.

• Gianfranco Tabasso (European Associations of
  Corporate Treasurers)
• CAST Coordinator

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EACT ( EUROPEAN ASSOCIATIONs OF CORPORATE
TREASURERS ) CORPORATES MUST SPEAK WITH ONE
VOICE HELP DEFINE STANDARDS AND ADOPT THEM
EACT represents a significant share of
corporates 16 European countries Over 8000
corporate treasurers ,CFOs and financial
professionals 5000 groups/companies ( large
and middle-size )
www.www.eact-grup.com
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What is CAST all about ?

• CAST Projects are a private initiative with
  public objectives .
• Private initiative means that the project will
  be run by the EACT with a limited number of
  paying sponsors ( banks and corporates ) who do
  not represent their communities.Agenda ,
  time-table, governance , modus operandi , and
  deliverables are freely defined by the project
  team and approved by EACT Board
• Public objectives means that - projects aim
  at finding solutions to general problems which
  hinder development of the e-economy
• - will comply with all openness
  requirements of public projects
• - will consult all stakeholders and EU
  Authorities
• - will publish all results

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VALUE CHAINS
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Process Re-Engineering, Standardisation
,Dematerialisation , E2E STP are instruments
that significantly reduce Excess Working Capital

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• ELECTRONIC INVOICINGThe EU market
• Est. No. of bills and invoices in Europe27
  billion
• - Germany 7 billion
• UK 4
• France 4
• - Italy 4
• Belgium gt900 million
• Users of EIPP Systems
• 2005
  2006 ( year-end est. )
• 100.000 enterprises
  200.000
• 6 million consumers
• - 190 million e-Bills
• - 125 consolidators
  150

Source Beweco
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• SAVINGS FROM E-INVOICING IN THE EU
• Cost of processing a paper invoice (B2B)
• Issuer
  5 to 15 euros
  the saving of
  automatic reconciliation
  of Receivables
• Receiver
  25 to 60 euros
• Estimated net savings from
  60-90 of total cost
• Dematerialization Process Reeng.
• Savings calculation for e-invoice
• Cost of invoice low end of estimates 255
  30 euro- Saving from e-invoice
  80
• 50 of bills and invoices (B2B) 13.5
  billion
• Potential Saving
  243 billion euro
• Source estimate by EACT based on real
  user-cases of savings and Beweco market figures

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SAVINGS FROM E-INVOICING IN THE EU Case Study
ITALY Two years ago, CNEL ( a Think Tank
advising Government ,Parliament and P.A.) ,
opened an Experts Table on Dematerialisation
of Administrative and Financial processes and
Development of the network economy.
- auditions of international experts -
in-depth analysis of best practices -
definition of market business model Results .
Est. savings from e-invoicing B2B for the Italian
economy 60 Billion Euro ( 4,5 of GNP ) Next
2-year work-session of CNEL on Dematerialisation
- specific proposals of economic policy
to Government and P.A. - initiatives to
implement market business model -
support of CAST initiative - launch of
pilot projects in Italy ( CBI 2 , EBPP ,
District ASP)
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• Automatic Reconciliation of A/R ..
• New payment messages will facilitate
  reconciliation of A/R - URI
• - Standard Remittance Advice Savings
  are substantial .
• Telecom Italia had 253 people working full time
  reconciling 400.000 credit transfers/year worth
  3.3 billion on 72 bank accounts - In the US
  , a recent study estimated the time spent in
  reconciling A/P and A/R equivalent to 500,000
  full time workers This is the bulk of the
  bookkeeping work in America ( over 100
  billion/year )

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Learn from best practices. How process
dematerialization and E2E STP can increase
productivity and quality of service
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ENITER Platform and Transactional Processes
Logistics Production Commercial
Customers and Suppliers
E-mail
EDI forjust in time and Accountimg
EDI
Fax
Corporate
Document Dispatching processes
MARKETS
Group Corporate

• REMADV
• BOPDIR
• INVOIC
• STATAC

ERP
Internet
PKI
Security Key
Monetary Settlement processes

• Banca dItalia
• UIC
• Banking hubs
• Banks

PAYMENTS SYSTEMS
Monetary Settlement
Electronic Signature
Electronic Signature
Digital Signature

• Acknowlegment
• Slip and c/a statement
• Confirmation

Central Treasury
FINANCIAL FOREX MARKETS
Enifin
Administration Finance Control
ENI Group Transactions and Reporting platform

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Best practice .
Source SOFID ( SSC of ENI Group )
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Best practice .
Source SOFID ( SSC of ENI Group )
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CAST project will tackle the following areas..
CAST project
Objectives
E-invoicing / Interoperability
Define rules and service levels requirements
to ensure lnteroperability between different
EBPP operators Business Models and standards
Propose to EU Commission and governments
measures to facilitate adoption of e-invoicing
by SMEs
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Digital Identity and Interoperability of
electronic signatures
Identify/propose models/criteria for
interoperability of identity systems and
electronic signatures in order to ensure
verification and control of digital certificates
at international and EU level
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Extended Remittance Advice and
e-reconciliation
Identify a set of data elements of an
Extended Remittance Advice that , in
conjunction with major ERPs , will STP the
e-reconciliation of invoices
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• DELIVERABLES
• At the end of 2007, CAST will publish the
  results of
• projects and recommendations that will help
  Corporates - improve management of the
  Financial Value Chain, i.e. reduce working
  capital and chain operating costs , increase
  security and compliance - reach a maximum
  level of STP in their domestic and european
  crossborder operations
• - plan dematerialisation projects based on
  best practices, approved standards with right
  metrics and proved methodologies
• Banks - better understand corporates
  business requirements , their role in the
  FVC, what dematerialisation services to offer-
  integrate payments and financing services
• - participate in collaborative schemes with
  other stakeholders

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• CAST CORPORATE WORK SITES
• Some activities planned and in progress .
• - Gap analysis of 7 proposed XML e-invoice
  standards
• Pick best of breed validate against actual
  invoices sent/received
• Map FVC processes define metrics measure
  efficiency of processes
• ( Fill CAST Questionnaire)
• Benchmark against best practices
• Organise groups of suppliers/buyer to monitor
  the invoice-payment- reconciliation cycle and
  improve efficiency of process ( including ERP)
• Define standard subset of data for automatic
  booking of invoices ( INVOICE ANNEX concept
  ) evaluate accounting and legal barriers ,
  ERP changes, etc.
• Monitor pilots with new standards ( CBI 2 /
  SEPA , ISO 20022 )

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CAST LIST OF SPONSORS ( PROVISIONAL )
SOCGEN SOFID (
ENI ) TELECOMITALIA BNP PARIBAS
SHELL
CROWN CORK ABNAMRO
PHILIPS E
Billing ING
IKEA SECETI.
UNICREDIT FERRERO
CITIGROUP FINMECCANICA
ISABEL EADS
ASTRIAX VOCA
IMPRIMERIE NATIONAL IDENTRUST
LE ROY MERLIN PBS ( Danemark)
FIAT Group BGC ( Sweden )
ELIOR SIA-SSB SWIFT
CAPGEMINI TWIST
ORACLE TBG 5 (UN CEFACT)
MICROSOFT ABI ( Italian Banking Ass.)
LUFTHANSA ATEB ( Belgian Tre. Ass.)
ENEL
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Contact Gianfranco TabassoCAST
coordinator Gianfranco.Tabasso_at_FMSGroup.it
www.EACT-Group.com