Self-Service%20applications%20to%20drive%20cash%20collection,%20reduce%20DSO,%20and%20improve%20efficiencies

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Self-Service applications to drive cash
collection, reduce DSO, and improve efficiencies

• Avolent and SPG
• NorCal OAUG Training Days
• March 7th, 2005

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

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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 Finances needs
• Case studies
• Qualifying the pain
• QA

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Francesco Hidayat Executive Vice President of
Consulting Services
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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

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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
  (DSOs, 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

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High Processing Costs 44-66 per invoice
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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 cant integrate data from other
  vendor and home grown system

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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

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ROI Beyond Invoice Presentment
Cash Flow Control Insight
ROI

• 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.

Interactive Invoicing

• Customer portal with the ability to pay, dispute,
  match, search, and report.
• ROI Reduced support calls, faster cash flow.

Capabilities
The Basics

• Presenting Electronic Invoices via email.
• ROI Reduced Printing Costs.

Business Benefit
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Chris Kenney Global Director of Alliances
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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
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Providing value
Business Issues Enterprise Planning Systems automate order-toinvoice 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. Enterprise Planning Systems automate order-toinvoice 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. 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
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Why Avolent for Oracle Users

• With Avolents 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

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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 (Email, 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)

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BizCast in your environment
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Todays Inefficient and Manual Processes
Existing IT Systems
Shipping
Billing
Order mgmt
Financials A/R
Customer Service
Inquiries, Disputes
Reconciliation, Payments
IT

• Compounded by
• Confusing customer experience
• No clear audit trail of changes
• Mess of credits/payments
• Large write-offs

Account Inquiry Status
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How Do You Know? Just Look At Your Invoices
Reconciliation
Inventory Management
Credit Calculation
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and your processes. What processes are your
customers asking you to do?
Search Help me find the invoice that
Custom Reports How much have I spent on x, y,
and z
Archives I need a copy of an old invoice I
never received an invoice
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How eBilling Fits In
Subsidiary 1 Billing System
Subsidiary 2 Billing System
eInvoice
Direct to A/P Network
Printer Service
A/R System
ERP System
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

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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

• 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

• Billing
• Payment
• Cash application
• Reconciliation
• Deduction resolution
• Customer service

Increase overall revenue and profit
Improve financial efficiency 10-45
Streamline invoice-to-pay process

• 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

• Streamline reconciliation 20-60
• Eliminate cash app exceptions
• Reduce dispute resolution times 20-80
• Reduce bill delivery times 10-60

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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

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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

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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

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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

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Southern Pacific Group
Northern California Office 2033 Gateway Place 5th
Floor San Jose, California 95110 www.spgus.com
Contact Information Mark West, Vice
President Office 408-961-8675 Mobile
818-368-4041 mark.west_at_spgus.com