《10xDS:从采购到付款的数字化转型(英文版)(16页).pdf》由会员分享,可在线阅读,更多相关《10xDS:从采购到付款的数字化转型(英文版)(16页).pdf(16页珍藏版)》请在三个皮匠报告上搜索。
1、DIGITAL TRANSFORMATIONOF PROCURE TO PAYINSIGHTS AND GUIDANCETM2Introduction.03Robotic Process Automation for P2P.04Leveraging Artificial Intelligence.07for Document Processing.Advanced Analytics for Predicting.09and ForecastingFew real-world cases of P2P.11transformation by 10 xDSConclusion.15Conten
2、tsTM3IntroductionMost of the medium to large businesses have centralized procurement departments with standardized processes for the organization.ERPs are in place and governance policies are well structured.Several companies are embracing emerging technologies such as Intelligent Automation and Adv
3、anced Analytics to streamline Procure to Pay process and gather efficiency gains.A significant percentage of the centralized processes are a mix of manual steps and electronic systems.The Procure to Pay(P2P)processes are quite elaborate and involve numerous steps to complete just one order,and there
4、 are deviations to accommodate exceptions everywhere.Hence P2P is much preferred candidate for Intelligent Automation adoption compared to other processes.Softomotives RPA Insights for Growth Companies study suggests that 70%of Procurement departments they surveyed have implemented RPA in their busi
5、ness or scaled it across multiple parts of the organization.P2P lead by a wide margin with other processes already in RPA journeyHaving RPA with its numerous benefits at the organizations disposal,the P2P processes that are already existing in the ERP will become touchless,leaving only negotiation a
6、nd decision making to humans.Benefits of RPA implementation in P2P will not only include productivity improvements but also reduction in the turnaround time of completing tasks.This improves accuracy and hence rework and operating costs come down.With all these,Customer Satisfaction will increase co
7、nsiderably.TM4Robotic Process Automationfor P2P$TM5SourcingPurchaseOrderGood receiptInvoicingPaymentsVendor MasterUpdating vendorbasic dataPreparing SpecificationsInitiating PO approvalsFollowing up for approvalsCommunicating POVerifying POAmending POsSending InguiriesReceiving QuotationPreparing Co
8、mparison sheetNegotiatingPreparing contractScanning&evaluating vendorsBlacklisting&whitelistingVendor queriesCreating POsScanning&sending GR DocumentsExtracting GR dataUpdating GR in POArchiving the GRsReceiving goodsVerifying invoices against GRVerifying invoices against POAuthorizing invoicesArchi
9、ving invoicesReceiving invoicesAuthorizing payments3 way matchMost suitable for intelligent automationManualAutomated already in ERP When we take a closer look at the procure to pay lifecycle,it becomes evident that most of the processes are with high automation feasibility reaching up to 90%automat
10、ion potential.Let us check out the activities from P2P lifecycle.1.Vendor MasterMost of the companies have certain policies for selecting,qualifying and engaging with vendors.They conduct reference checks and evaluate the security policies in place within the vendor organization.Companies also check
11、 for any criminal records like reported fraudulent activities in the past.These checks are performed by dedicated teams by following certain logical steps.Searching the internet for a vendor and scanning through the top results,searching the government databases to validate their company registratio
12、n and checking for criminal backgrounds if any,are few simple examples.This process of verification and scanning of the vendor is automatable with potential up to 100%.The key information of a vendor such as name,address,currency,terms of payment and others are stored in the Master data within the E
13、RP.Data compilation and updates are a tried and tested task for the software bots as we only need to define and set the frequency and duration of checks as well as the resources to check and access privileges.Vendor master database is continuously monitored and evaluated to whitelist or blacklist an
14、 existing vendor which is a“BOTable”job for compliance and accuracy.Automation of these activities enhances efficiency and accuracy,making the process seamless.Exhibit I:P2P Lifecyle Automation heatmapTM62.Sourcing and ContractingSourcing involves locating and selecting vendors based on a set criter
15、ion.The inquiries are sent to whitelisted vendors from the Vendor Master.Upon receiving the quotations,comparison sheets are prepared and is circulated with internal key decision makers to choose a vendor.These decision makers negotiate with the vendors to get the best quote.A contract with basic te
16、rms of the purchase is created which becomes the basis for a Purchase Order.Except for negotiation and selecting the vendors,all other activities can be assigned to a digital worker to reduce cycle time and increase accuracy.Sending request for quotations,archiving received quotations,preparing comp
17、arison document on a set template,preparing contract on a set template are some of the tasks with high automation potential.3.Purchase Order ProcessA purchase order(PO)is a commercial document issued by a buyer to a seller indicating types,quantities,and agreed prices for products or services.It is
18、used to control the purchasing of products and services from vendors.It also outlines the delivery date and terms of payment for the buyer.Upon finalizing a vendor,the procurement team updates the basic information in the ERP to create a PO.This includes entering the Contract period,vendor details,c
19、ontract value,payment schedule,and more.This is further sent for approvals to multiple layers considering the amount in a discussion.After receiving approvals,the PO is sent out to internal and external stakeholders.Creating a PO,following up for approvals and communicating the PO are typical BOT ta
20、sks to reduce manual intervention in the process and bring efficiency.4.Goods ReceiptA Goods Receipt(GR)is a document issued to acknowledge the receipt of the items listed in the PO.The delivery can be in multiple lots hence upon receiving the GR,it is updated against the PO to authorize payments.Th
21、is is a manual task of verifying GRs with warehouse and then updating GRs against the PO in the ERP.Optical Character Recognition(OCR)based intelligent automated solutions can be the saviour here to read the GR scanned documents received from warehouses to update them further against the PO in the E
22、RP.5.InvoicingFinancial institutions spend a lot of money and effort on maintenance of ATMs.Organizations could save money by reducing such operational costs if they had insights into which ATMs are nearing maintenance,thus enabling them on better utilization of the maintenance staff and reducing op
23、erational costs.In this case advanced analytics and machine learning techniques can be used to predict the probability of ATM failure.To enable this,past data needs to be consolidated from past failure logs and other sensor readings of various components of the ATMs.Predictive models could be utiliz
24、ed on regular intervals to get the probability of the failure of the6.PaymentsUsually,organizations use third-party services and payment gateways to process payments,but verifying and authorizing payments is a tedious and important task.Accounts Payable teams enter data manually from invoices in ERP
25、 upon the completion of a successful three-way match.Three-way matching is also a manual task prone to errors but very much rule based and hence a typical task to assign to a digital worker.TM7Leveraging Artificial Intelligence for Document ProcessingTM8By now you may have noticed that P2P function
26、deals with a large variety of documents such as quotations,contracts,invoices(unique template for each vendor),Good Receipt Note and more.So,any digital transformation initiative can only be termed successful if the organization is able to tame these documents and convert them to data that can be fu
27、rther used for processing.Documents are of various templates,types like Digital pdfs and Scanned images and varying quality.The data needed from these documents are header level information like Vendor Name,Address,Invoice Number,Invoice Date and Invoice Amount or item level information which detail
28、s about the list of items and corresponding prices against each of them.These documents also come in various languages.For P2P to completely transformed,implementing intelligent document processing is a key.The Intelligent document processing eco system includes many technological components like Op
29、tical Character recognition(OCR),Machine Learning(ML)and Human in the Loop(HITL).With all these components at disposal,Intelligent Document Processing(IDP)takes care of document receipt,classification,enhancing the data quality,extracting the required data and preparing it in the format needed to pu
30、sh to the downstream application for processing.Exhibit II:Intelligent Document Processing WorkflowCAPTURERECOGNISECLASSIFY&VALIDATEVERIFY&INTEGRATEVarious documents(PDFs,Scanned image)are archived in Document Management system(DMS)Intelligent Automation solution retrieves the documents from DMS and
31、 extracts the required data fields.Extracted data is consolidated.Data shows the document type(classification)and data fields extracted from each documentBOT updates the extracted data into the ERP and processes furtherOptical Character Recognition(OCR)Machine Learning (ML)Human in the loop(HITL)Ana
32、lyze and image and detects and extract the texts in the image to a machine-readable formatSystems that improve own performance by exposure to data,outcomes and feedback loop.They learn,predicts and improvesHuman intelligence is brought it to the loop to make decisions on exceptions,escalations and a
33、pprovals.It provides trainingto ML algorithms TM9Advanced Analytics for Predicting and Forecasting TM10P2P is a function that affects the cashflow position of any organization hence planning for any expenses expected to occur in future is inevitable.This is where advanced analytics comes handy.Analy
34、tics makes sense of financial data and provides insights that helps in informed strategic decision-making.Capturing and analysing this data across the entire procure to pay process helps to get a holistic view of processes and transform your organisation for ultimate success.Spend AnalyticsMost of t
35、he organizations agree that the money needs to be spent wisely.But analysing the spending habits,line by line may not be feasible.This is where analytics have a huge role to play,to present the spending insights in front of management,to understand and take actions accordingly.Where wasthe money spe
36、nt?Was there any off-contract spends?How many vendors are there?Are they right for the organization?Are we getting the most value for money?Where are the saving opportunities?These are few questions for evaluation.To ensure you are using the right vendors,analytics of the supply chain can help analy
37、sing spend distribution charts and show the total number of suppliers and spend volume as well.Spend analyticsprovide historical data as well as real-time analysis of line-level invoice data which in turn helps to understand price variations across different regions or business units.Understanding t
38、he overspend helps purchasing teams to identify cost saving opportunities.Many organizations are most likely using analytics in some form or the other already,whether it is through spreadsheets or dedicated tools.And,as with any technology,the advances and changes are rapid.One area where forward-lo
39、oking organizations are applying technology is in Artificial Intelligence(AI).Going beyond analysing the data,functionality is emerging for technology to start making decisions which can impact the bottom line.As AI develops,it will increasingly enhance analytics and enable organizations to better p
40、redict and model spend,as well as spot supply chain risks.Discount AnalysisSales organizations need to balance the need to push the top line with the overall company target to keep the bottom line stable.This means they must give a certain amount of freedom for discounts but at the same time track t
41、his carefully by sales team,product line or customer.It should also be possible to track manually added discount and system determined discount along with various types of discounts like overall discount,customer specific discount,product specific discounts and others.Discount analysis provides deta
42、ils of early invoice payment related discounts availed,payments running the risk of missing discounts and daily payment outstanding(DPO),among others.Other than the Spend and Discount analytics,Risk analytics also comes handy to identify the potential risks and to mitigate them.P2P being an area pro
43、ne to fraud,money leakage,and inefficiencies,visibility into the entire life-cycle of a transaction from vendor selection to invoice and payments will helps organizations to improve and reinvent their processes,enforcing accurate decision making and driving process efficiency.TM11Few Real-World Use
44、Cases of P2P Transformationby 10 xDSTM1210 xDS helped a Kuwait based company,manufacturing Insulation materials to automate the process of purchase order creation in SAP to increase the efficiency of overall P2P lifecycle.The process was manual Intensive and high-volume with approximately 6000 POs a
45、nd 10000 RFQs per year.It only required 1 minute per PO for a BOT which was 80%reduction in average handling time.The accuracy of the BOT process reduced the rework warranted from the wrong data entry.Automated solution was designed to handle Email Monitoring and data extraction,Access to ERP,Creati
46、on of PO,Price Identification from RFQ along with notification and approvals.Automated PO creation from RFQsin SAPTM1310 xDS automated a process for processing order details in SAP from the Salesforce applications where sales agents update their corresponding orders taken from shops and distributors
47、 for their SKUs.Process can be run at an interval of 30 minutes for nearly real time order processing in SAP to bring about process efficiency which was done earlier on ad-hoc basis.With the automated process BOT logs into Salesforce application and downloads order details for each of the sales agen
48、ts,creates the orders in SAP and finally sends the order status to business team.Order processingin SAP for Retail companyTM1410 xDS implemented an automated solution to digitize and streamline Vendor payments for a leading diversified retail and distribution group in Middle East region.Large number
49、 of invoices in varying formats and manual data entry was resulting in high error rate and lengthy cycle time.Statement of Invoices containing 10 invoices from invoice creation till payments took almost 35 hours was reduced to 11 hours in the automated process.The OCR engine incorporated into the so
50、lution extracts data from the invoices to enable faster processing of payments.Vendor payment automation fora leading retail groupin Middle East$TM15Emerging technologies frees procure-to-pay professionals to spend more time on cost optimization,relationship management,analysis,and insights.Beyond t
51、hat,the increased speed and accuracy of exponential technologies,businesses tend to reduce their operational costs to a greater extent.These technologies enable Business leaders to make timely,fact-based decisions.Adopting Intelligent Automation and Advanced Analytics can help companies accelerate t
52、heir automation journey and drive digital transformation.Conclusion TM16Exponential Digital Solutions(10 xDS)is a new age organization where traditional consulting converges with digital technologies and innovative solutions.With an expert team having diverse experiences and backgrounds,10 xDS is co
53、mmitted towards partnering with clients to augment their performances and help them realize their most important goals by harnessing a blend of automation,analytics,AI and all thats“New”in the emerging exponential technologies.Today,we are treading an exponential path of growth,delivering many succe
54、ssful and transformative engagements,designing and creating new business models,business advisory partnerships and center-of-excellences!About 10 xDSExponential Digital Solutions S.P.C P.O Box:60615,Suite No:501,5th Floor,4th Gate Manama Centre,Manama,Kingdom of Bahrain +973 32 06 9393ManamaExponent
55、ial Digital Solutions Pvt.Ltd.Module 1,Lower Ground Floor,Park Centre,Technopark,Trivandrum-695 581 +91(0)471 660 6600TrivandrumExponential Digital Solutions Pvt.Ltd.Office 1,Wing 2,4th Floor,Jyothirmaya,Infopark Phase 2,Brahmapuram,Kochi-682 303 +91 968 666 0290UAETransformation Technology SolutionsP.O Box 127432,11th Floor,Al Wahda Commercial Tower,Hazaa bin Zayed 1st Street,Abu Dhabi,UAEAbu DhabiBahrainIndiaKochiExponential Digital Solutions Pvt.Ltd.#11,Gangadhar Chetty Road,Sivanchetti Gardens,Halasuru,Bengaluru-560042 +91 968 666 0290BTM