This presentation is from the AVIO and Land O'Lakes session at Collaborate 2016 (session 2007) called "Modernizing the JD Edwards AP Process".
This demo takes an Accounts Payable invoice through the complete lifecycle from scanning using Oracle Data Capture (ODC), extracting the metadata using Oracle Forms Recognition (OFR), storing the metadata an image using Oracle Imaging and Process Management (IPM), and Oracle Business Process Management (BPM).
Video of demo can be found at: https://www.youtube.com/watch?v=Lfk9fyMYiZI
3. 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
4. AP Processing
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Vendors
Accounts
Payable
Payment
Archive
ERP
4 ERP Systems
JDE 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
~
6. 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
7. 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
8. 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
9. 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
11. How are Invoices Captured?
Image Capture
Scans batches of
documents
• Email
• File system
Batch Splitting
~
Oracle Document Capture (ODC)
12. How is Invoice Data Captured?
Optical Character Recognition (OCR)
• Learn Sets
OCR Verification
• Release to IPM
~
Oracle Forms Recognition (OFR)
13. Where are Invoices and Data Stored?
Stores Images and Metadata
Image Viewer
Image Search
Image Annotation
Initiates BPM Process
Imaging and Process Management (IPM)
17. 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
19. 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?
27. Blessings
Business Sponsor
Process Owner
IT Management
As-Is and To-Be Metrics
Flexible Development Methodology
Experienced Developers
Relationship with Product Management and Support
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28. 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
29. 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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