Respond to Intensifying Financial Risk and Achieve Tangible Net Savings: A Holistic PeopleSoft Suppler Source to Treasury Cash Management System

1. Respond to Intensifying Financial Risk and
Achieve Tangible Net Savings:
A Holistic PeopleSoft Suppler Source to Treasury Cash
Management System
Presented by Mayda Barsumyan, President of Business Escalation

2. Mayda Barsumyan, President
Business Escalation, Inc. is a leading Source to Cash Oracle
Platinum Partner with a team of seasoned finance and
management professionals offering cash management products
and services. Government agencies, companies in the public and private
sectors, not-for-profit groups, and Fortune companies look to Business
Escalation for software centralization and treasury consultation.
Business Escalation, Delivering Enhanced Profitability
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

3. What you’ll learn today…
• Best practices to achieve tangible net savings
• How companies in the fields of healthcare, energy, manufacturing and
higher education achieved their finance department goals
• What is Supplier Source to Treasury Cash?
• Settlement automation
• Tips and tricks
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

4. Did you know?
• Base on industry norms, less than 50 percent of IT projects finish on
time and on budget.
• Queensland Department of Health payroll project ended in a debacle
that cost $1.2 billion.
• In the U.S., the Expeditionary Combat Support System, an enterprise
resource planning software project, was canceled after the U.S. Air
Force spent $1 billion on its development.
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

5. Why did these projects fail?
• Fuzzy goals
• Overly optimistic
• Little comprehension of project complexity
• Weak ownership
• Lack of understanding of the corporate culture
• Lack of overall understanding of integration between departments
and relational data
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

6. Treasury Challenges
CFOs/Treasurers in public and private sector companies serve as financial
risk managers.
• Liquidity Risk
• Credit Risk
• Currency Risk
• Interest Rate Risk
• Operational Risk
CFOs/Treasurers are increasingly assuming a more strategic role.
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

7. What is the value of PeopleSoft Supplier Source to Treasury Cash?
Provides tools that allow CFOs/Treasurers to make informed decisions
and mitigate risk
• Streamline banking
• Reduce cost of bank-related fees via bank account optimization
• Implement a single source to cash management system
• Implement a single source banking communication channel
• Exceed expectations on eliminating unproductive manual efforts
• Improve cash management structure and account pooling
• Increase in trade finance
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

8. Industry Case Study
Healthcare
Staff of 13
Top 20 supplier invoices: 45%
Top 50 supplier invoices: 60%
Non-PO invoices: 25%
Invoices processed (December ‘14): 1,112,525
Measurement: cycle time
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105
Goals:
Meet cycle time
Eliminate paper
Reduce non-PO invoices
Predicable cash flow

9. Industry Case Study
Energy
Staff of 9
Top 20 supplier invoices: 70-80%
Number of invoicing suppliers: > 2,000
Non-PO Invoices: 25%
Invoices processed (December ‘14): 554,575
Measurement: Invoices processed by FTE
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105
Goals:
Eliminate paper
Realize early payment discounts
Electronic payments

10. Industry Case Study
Higher Education
Staff of 60 (many low pay, high turnover)
$300K deficit
Total Invoices: 450,000
T&E: 90,000
Measurement: Timely invoice payments
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105
Goals:
Implement eSettlement
Realize early payment discounts
More virtual card payment
Increase operational cash

11. Industry Case Study
Manufacturing
180 centers ~ 180 individuals
Decentralized review of invoices
Invoices processed (December ‘14): 122,917
20 of 180 centers live with invoicing
Measurement: Cycle time
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105
Goals:
Streamline review process through
decentralization
Increase end user visibility
Reduce errors and payment issues
Manage operational short-term cash
Predict daily operational cash needs

12. Sample Source to Cash system
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105
Deposit Check/ACH
Organization
Banking Institution
Banking
Institution
Suppliers
Online Banking

13. Supplier Source to Treasury Cash – Best Practices
Practice smart supplier sourcing
Broaden supplier self-service
Establish a centralized VMO
Best-in-class organizations implement a portfolio approach, leveraging
the advantages of multiple tools:
• Electronic invoicing with workflow
• Purchasing card solutions
• Electronic payment platforms
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

14. Supplier Source to Treasury Cash – Best Practices
Electronic invoicing presents the best option for addressing the majority
of invoice types, supplier capabilities, and best complements electronic
payment approaches
Maximize relationship with financial institutions
Define AP / Procurement Role v/s Treasury
Minimize operational risk
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

15. Settlement Automation – Industry Perspectives
Accounts Payable is a largely forgotten process at most organizations,
yet represents sizable untapped opportunities
Having a settlement strategy is increasingly required to optimize and
complement strategic sourcing
Reducing transactional costs alone typically justifies automation
projects:
• $34 per invoice $12.50 per invoice (>60% improvement)
• Labor reduction of 25-40%
• Cycle time decreases of 65%
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

16. Settlement Automation – Industry Perspectives
Other benefits include significant increases in:
• Timely payment rate
• Payments earning discounts
• Cash flow management
• Control and risk mitigation
• Capture and reporting of negotiated procurement savings
“Automation” is the #1 interest area for AP managers, yet fewer than
25% of organizations have any significant settlement automation in
place
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

17. Projected savings from payment solutions
At full deployment of PeopleSoft
• On average savings at full deployment = $1.75 million to $2.95
million
• On average additional profits of $1.46 million
To consider
• Maximum rebate enhancer
• Dynamic discounting
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

18. Tips & Tricks – A Holistic Approach
• Chart the treasurer’s vision and clearly define business processes to
carry this vision
• Review existing configuration
• Ensure that system configuration is molded to support future
business processes
• Think outside of the box
• Explore creative configuration techniques
• Maximize the rules-based functionality to achieve the processing
you need
• Understand your integration points with other modules
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105

19. Thanks for your time!
7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105
Questions??

20. 7733 Forsyth Boulevard, Suite 1100 Clayton, MO 63105
Locations & Contact
Contact Information
Phone: (888) 594-9919
eFax: (877) 278-2530
E-mail: info@businessescalation.com
Web: BusinessEscalation.com
Locations
Missouri
Clayton, MO (Headquarters)
7733 Forsyth Boulevard
Suite 1100
Clayton, 63105
Florida
801 Brickell Center
801 Brickell Avenue, Suite 900
Miami, FL, 33131