Session ID:

Prepared by:

Modernizing the JDE AP Process

2007

@avio_oracle

Dan Atwood – AVIO Consulting

Tim DelCotto – Land O’Lakes

Introductions

Tim DelCotto – Land O’Lakes

• IT Delivery Manager – Finance

Dan Atwood –

• Director

Land O’Lakes Overview

One of America’s Premier Member-Owned Cooperatives

Second-Largest Cooperative in the Nation

– 10,000 employees

– 3,200 direct producer-members

– In all 50 states

– More than 50 countries

Net Sales for Land O’Lakes in 2015 were $13 billion

Three Business Units

– Dairy Products

– Seed/Crop Protection Products

– Animal Nutrition

AP Processing

4

Vendors

Accounts

Payable

Payment

Archive

ERP

4 ERP SystemsJDE 8.1.2 (Dairy)JDE 9 (Winfield)JDE EnterpriseOne XE (Purina)Fusion (Indirect spend)

AP Technician (~ 45) Business Partner(1,000 +)

1,000,000+ invoices processed/year

60,000 vendors

50/50 electronic and paper invoices

~

Challenges and Objectives

5

Work Management and Efficiency

– Cannot scale without additional headcount

– Automated recognition process was not effective

– No automated matching into the ERP systems

– Business Partner interaction via unstructured email

– Ineffective task prioritization

– Low SLA awareness

Work Visibility and Search

– Searching Ineffective and Slow

– Data for Sorting and Viewing Invoices Limited

AP Challenges

Goals

• Improve Conversion to Digital Format

• Effective Integration to ERP Systems

• Defined Prioritization Built into the Workflow

• SLAs Defined and Leveraged to Drive Process

Logic, Including Notifications

• Enhance Communication with Internal

Partners for Exception Resolution

• Complete Audit Trail of Actions Performed

Why Fusion Middleware?

“Gaps in the Apps”

Zero Modification of ERPs

– Modifications make ERP upgrades much more difficult

Multiple ERPs

– None at Land O’Lakes do auto 3-way match

Manual Effort is Still Required to Correct Scan Errors

– With Business Process Management (BPM) user interface, the

invoice and metadata are viewed simultaneously

The Solution

Phased Approach

– Phase 1

• Process Improvement

• Improved capture/business process management

– Key Success Measure – Discounts

– Key Success Measure – Productivity

• Integration with ERPs

– Phase 2

• Improved OFR/Pass through processing

• Improved integrations with ERP’s

Agile Development

• Team – AVIO + Land O’Lakes

AP Processing System Components

How are Invoices Captured?

Image Capture

Scans batches of

documents

• Email

• File system

Batch Splitting

~

Oracle Document Capture (ODC)

How is Invoice Data Captured?

Optical Character Recognition (OCR)

• Learn Sets

OCR Verification

• Release to IPM

~

Oracle Forms Recognition (OFR)

Where are Invoices and Data Stored?

Stores Images and Metadata

Image Viewer

Image Search

Image Annotation

Initiates BPM Process

Imaging and Process Management (IPM)

AP Process

14

AP Basic Process

Business Rule – Assign Priority

~

AP Automation Process in Action

Service Business Rule UserActivity

The 6 minute demonstration that steps through the

entire lifecycle that was shown during this

presentation is here: https://youtu.be/Lfk9fyMYiZI

Reporting

22

Reporting

Business Activity Monitoring (BAM)

• Operational data store for collecting metrics

• Built to support

• Operational needs

– Reconciliation

– How many invoices are at each activity in the process?

– Should people be reassigned to support a different queue?

• Analytical needs

– What proportion of invoices with discounts are paid promptly?

– What is the average processing time per invoice? Per AP Tech?

Daily Volume Monitoring

Reconciliation

25

Exception Trending

26

Discount Achievement

27

Invoice Aging

28

BAM Infrastructure

29

Blessings and Benefits

30

Blessings

Business Sponsor

Process Owner

IT Management

As-Is and To-Be Metrics

Flexible Development Methodology

Experienced Developers

Relationship with Product Management and Support

32

Benefits Achieved

Fills “gaps in apps” with no ERP modification

Visibility

Flexibility to quickly add new lines of business

Time and cost reduction

• Discount achievement

• Labor efficiencies through reduced time per invoice

Thank You

For additional information, please contact

– Gary Buffington

• +1 (214) 435-7301

• gbuffington@avioconsulting.com

The 6 minute demonstration that steps through the entire

lifecycle that was shown during this presentation is here:

https://youtu.be/Lfk9fyMYiZI

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