1. Note: All numbers are estimates. Accuracy greater than 3 significant figutes is not impled
Late Fees – American Express & Others $102,337
*Chasing Late Pay & Dealing with Systems Issues* $3,371,554
Annual Cost of Poor Quality $3,473,891
2 Year Cost of Poor Quality $6,947,783
* Costs of Poor Quality are spread across 661 Admins and hundreds of other colleagues
Estimates of soft, hidden vendor costs, impossible to measure
Costs of Poor Vendor Relations (~2% of >30 days late) $1,800,000
Summary Costs of Poor Quality – WBB P2P
Why are Payments Being Held Up?
2000
1800
1600
1400
1200
1000
800
600
400
200
0
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0
Approval/ASL/ASOL
Vendor
Invoice
Code/Coding
Other
Status
PO/po
Contact
Budget
U
pdate
Tax
Reason
Number
Cumulative%
Delayed WPO Invoices
Source: Sample work flow notes - 2008
Root Causes
• Pegasus-Ariba-Computron interfaces are suboptimal and require manual intervention
• Lack of End-to-End process governance and control
• Inadequate problem resolution
• Business processes were never designed for quality. The 660 step process has
173 points with Pain
Goal: Improve Gallup Scores
WPO/WBB P2P Brief History
SEP
08
Ian
Read
received
seriouscolleague
com
plaintsand
m
adecom
m
itm
ent
to
im
prove
service.
FEB
09
Kick
Off
M
AR
09
Custom
erSatisfaction
17%.660
step
process
w
ith
173
“problem
s.”
$3
M
ilin
wasted
tim
e.
M
AY
09
Began
Low
Cost-No
Cost
Im
provem
ents(10
of39
com
plete
to
date)N
OV
01,2009
“W
yeth
W
BB
Colleaguesto
use
PegasusJAN
2010.”JAN
28,2010
SponsorsApprove
Funding
BUSINESS TECHNOLOGY