can one e-invoicing provider really serve you? ever consider roaming?
DESCRIPTION
This session was presented at '15 Secrets to Shared Services Success" conference organised by sharedserviceslink.com.To find out more about forthcoming conferences check http://www.sharedserviceslink.comTRANSCRIPT
15 Well Kept Secrets to Shared Services Success18th – 19th March 2009Millenium KnightbridgeLondon
Soile Hiekkasalmi-Linna
Can One E-Invoicing Provider Really Serve You?
Ever Considered ’Roaming’?
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Metso Financial Shared Services
• Established 2004 – 2005• Finland in two locations• Canada, Montreal
• FI/SWE 30 units• CA/US 20 units• not all Metso units MFS customers (yet)
• GL , AP, (750 000 inv. ) AR, Payment, Travel, Payroll
• 2 Finance applications
• Many ERP’s (harmonizations in progress)• 200 employees
INTERNAL
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AP in MFS today
• Booking practises harmonised • Various applications reduced
• Transparency MFS/Units -• Common Invoice Processing application
• Control of invoice flow improved• Invoices in flow (appr. 1 week)• Payment on time improved (>90%)
• Measurements• FTE – benchmarked
excellent results - upper quarter • Customer surveys - improved during the years,
results being nearly 4 , scale being 1-5• e-invoice % (>40)
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E-Invoicing in Metso Group
• Start in the beginning of 2000
• Management decision
• Shared Service Centers in Finland and Canada
• First internal invoices
• Second incoming invoices, big volumes
• Third outgoing invoices
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Targets for E-Invoicing
• Fast delivery of internal invoices / month end procedures• closing the books in 4-5 days• e-invoices during the same day
• in mail max. 1-2 weeks, • electronically min. 5-10 min
• Improve and automate invoice handling processes• Automatic update in the data base
• Should be easy • Minimize manual work
• No extra organization or IT specialist
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• Cost savings•Target to reduce invoice handling costs
• Invoice processing application broughtthe possibility to receive e-invoices
• costs compared to scanning /target toreduce 50% /invoice, now 80%
• Future visions / expectations • Believe that e-invoicing will be
’de facto’ standard some day
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E-invoicing technical strategy
• Common solution as far as possible
• No point-to-point solutions
• Controlled way of exchanging messages andinformation
• One way out from Metso
• One way into Metso
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Brokersending
Invoice handling
Outbound e-invoices Inbound e-invoices
Metso Service provider
METSO NET
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SP
SP
ERPs
OutboundInvoicing
Finance
Inbound Invoice processing
SP
Global / national standards/rules
HUB
SUPPLIERS & CUSTOMERSROAMING
METSO SERVICE PROVIDER
Service provider ZService provider X
Service provider Y
SHARED SERVICE CENTERSMETSO BUSINESS UNITS
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Supplier approach in Finland /Sweden
• Big volumes •Suppliers > 10 000 – 14 000
• (FI) Letters to first 50 -100 biggest suppliers (2-3 rounds)• asked the status and possibilities to send /• start sending e-invoices, no due dates orsanctions
• targets 15% 20% 25% etc.
•Personal contacts afterwards
•The results not very good, they were not seen very soon
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• (SWE) even more challenging task
• Infrastructure does not support roaming as well as in Finland
• Activation campaing together with our Service providerPresent roaming agreements in Sweden and willingess to negotitate the new ones
• Letter from Metso / different options, no sanctions
• Personal contacts (Service provider)
• Now 10/30 of these are about to start – technically ready
• Supplier Kit – information package
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• E-invoice projects usually last fairly long timeReluctanceBenefits were not seen or recognisedApplication migrations etc.
• Infrastructure development – roaming agreements helped
• Now over 40 – 70 % of invoices electronically
• Next steps? Sanctions?
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Considerations
• Difficult to find the right person(s) in the supplierresponsible for this
• Procurement (own) should have been better informed andmore involved
• Customer is the king – service provider is a third party
• Service provider – good in technology
• Careful thinking how to approach the suppliers
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Customer approach
• Customer is a king
• Big customers informed their aims to start receiving e-invoices
first wishing today more and more requiring /demanding
• E-invoicing projects in business units
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• Difficulties and problems faced
• Benefits not seen very clearly in business
• Customers scattered globally
• Many customers still not able to receive e-invoices
• Options offered not good or acceptableSeparate portals Demands to join to separate networks
expensiveimpossible to handlevery ineffective processwise
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So what are the benefits for the sender?
• Cost savingstransaction fees less than stamps/paper/envilopes(1-2 eur)more effective prosesses –no manual work
• Digital archiveall invoices, also sent in paper with attachments
• Internal invoicingbenefits in month end procesess
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Pilot project in USA
• Metso Paper USA Inc. sending invoices electronically to a big US customer by usingthe roaming with two service providers
• A project started in September 2008and was completed in January 2009
• We are able to use the same format ,the same technical solution in our end
• Next steps – to find the possible new customers of these two service providers
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Roaming -The only way of to reach allsuppliers /customers at the end
• One technical solutiongives definite cost savings whenthe solution can be rolled out
• Feedback /alerts from one source – simplealerts look the same they can be forwarded from one sourcein Metso to all the needed people in the organization
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• One partnerClear roles and responsibilities
• One agreement in the companyCommon pricing Transaction fees based on Corporate volumes
• Partnership with the service providerCommon understanding and knowing each otherNew ’installations’ easier because of that
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LESSONS LEARNED
• Procurement /purchasers more informed and involved when approaching the suppliers
• Roaming is the future solution to really reachall your suppliers / customers around the world